In our continuing efforts to have TaxJar produce sales tax reports that match the requirements of individual states, we recently updated the TaxJar state report for the state of Illinois.
Now, then you click into your Illinois sales tax report, you will see sales and tax totals grouped according to whether the sale originated within the state of Illinois, or from outside.
This is particularly valuable to Amazon and other online sellers. Why? Because, in Illinois, Internet orders are deemed to occur outside the state (see page 6 of this document from the state for more details.)
As such, for orders that ship into Illinois from another state, Illinois only requires that sellers collect the state use tax rate of 6.25%. However, for orders shipped from an inventory location within the state (such as your own garage or an Amazon fulfillment center) you are supposed to collect the rate based on the location of that inventory.
The screen shot above shows what the report will look like for an Illinois-based multi-channel seller who sells most items through a traditional retail location, but also sells some Amazon FBA products originating from IL warehouses, and other orders originating from Amazon’s fulfillment warehouses throughout the country.
Hopefully, this now makes filling out Illinois sales tax return much easier.
As always, feel free to reach out with any comments or feedback, by either commenting on this post, or emailing use at email@example.com