SC Supreme Court rules Amazon must pay state for uncollected back taxes - South Carolina Daily Gazette
South Carolina Supreme Court ruled that Amazon must pay uncollected back taxes to the state, potentially setting a precedent for marketplace facilitator liability for sales tax on third-party sales. This could affect small cross-border importers using marketplace platforms.
Aforeworn detected this change in the Small Cross-Border Importers space on July 8, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated Medium urgency. Small cross-border importers selling via Amazon or similar marketplaces, especially those using FBA or dropshipping to South Carolina customers. should confirm how it applies to their specific situation before acting. There is a time constraint attached: Within 30 days to assess exposure; ongoing compliance needed.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Small Cross-Border Importers continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
The court affirmed that Amazon is liable for uncollected sales tax on third-party sales, reinforcing marketplace facilitator laws. This may lead to increased tax collection obligations or back-tax exposure for sellers.
Who it affects
Small cross-border importers selling via Amazon or similar marketplaces, especially those using FBA or dropshipping to South Carolina customers.
What you must do
Review sales tax collection practices for South Carolina sales via marketplaces; ensure marketplace is collecting tax or register to collect yourself.
Deadline
Within 30 days to assess exposure; ongoing compliance needed.
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