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Michael J. Bernard, chief tax officer of transaction tax at Vertex, and George L. Salis, principal economist and tax policy adviser for Vertex, explore Bolger v. Amazon. This ruling by California’s Fourth District Court of Appeals stated that Amazon could be held liable for a defective product sold on their online marketplace.
Tax professionals will want to be familiar with the case and assess its potentially far-reaching implications on marketplace transactions and the master service agreements that govern them. Tax leaders should consider how a transformational shift in product liability applicability raises the stakes on tax compliance risks at a time when post-Wayfair sales tax changes targeting marketplace facilitators and online transactions more broadly are multiplying.
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