Sunday, November 4, 2012

Amazon and sales tax in Oregon, California and New Jersey

In September 2012 American retail giant Amazon started collecting sales tax in California. Depending on the location of the warehouse of your Californian shipping forwarder, Amazon will collect 7.25-9.75%.

Some shipping forwarders have their warehouses in New Jersey. Many online retailers do not collect a sales tax from customers from New Jersey. However Amazon USA plans to build two huge distribution centers in New Jersey. Moreover Amazon will start collecting a 7 percent state sales tax in July 2013 - whether the warehouses are built or not.

Map: States where Amazon collects and will collect a sales tax

One of the ways to avoid sales tax for non US reditents is by using no sales tax locations. Shipito shipping forwarder has a warehouse in Tualatin, Oregon. Another shipping forwarder Qwintry is located in Portland, Oregon. The sales tax in both locations is not collected.

Alternatively you may use freight forwarders which have locations in those states, where sales tax is not collected when you make purchases in your favorite online stores. This means that this stores should not be based in such states, not should they have any offices, offline stores or warehouses there.

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