Amazon is set to change its tax practices
Amazon shoppers may soon find that their online purchases cost more than expected.
The online retail giant has said that it will start collecting sales tax in four new states in the US from April 1st, bringing it to an important landmark that could mean price rises across the board.
The move, reported by CNBC, means that purchases made in the states of Hawaii, Idaho, Maine, and New Mexico will now incur sales tax.
Today’s news means that Amazon now collects sales tax in all 45 of the US states that require companies to do so.
The other five states, Alaska, Delaware, Montana, New Hampshire, and Oregon, do not have a state sales tax, meaning they are exempt from the rule.
The move means that Amazon now loses one of its most important advantages over high-street stores, particularly in the US, where sales tax often means that items cost far more at the till than their listed price on the shelf.
Amazon Echo – Things you MUST ask Alexa right now Mon, January 30, 2017
Amazon's Echo speaker has plenty of tricks up its sleeve but we bet you didn't know you could ask Alexa this
Play slideshow EXPRESS NEWSPAPERS 1 of 9
Things to ask Amazon's Alexa
It’s not known if the move will lead to Amazon increasing its prices, as the company looks to expand its operations across the world.
The change has been force by Amazon’s creeping presence across the US, as the company built data centres and warehouses in each state in order to cut down on delivery times and online outages.
However creating this footprint in multiple areas means that Amazon falls foul of a 1992 case which forces companies to collect sales tax in states where they have a physical presence.
Get Quotes on Home Insurance
The first Amazon Go store is set to open this year
The news comes soon after Amazon revealed a first look at its very own high-street store.
Amazon Go was launched back in December, boasting what the company says is, “the world’s most advanced shopping technology”.
Set to open in Seattle later this year, Amazon Go does away with queuing, checkout assistants, and even the need to hand over any money.
Instead, customers scan their phones when entering the store, with all items then tracked by the shop itself before their Amazon account is charged.