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FBA Sales Tax

FBA sales tax nexus
Amazon warehouse locations
Fulfilled by Amazon

FBA sales tax nexus

FBA Sales Tax

FBA Sales Tax Problem: You are thinking about or have already signed up to be a Fulfilled By Amazon (FBA) seller. FBA sellers enjoy turnkey logistics and customer services provided by Amazon. However, the sales tax nexus definition in many states creates a nexus situation for the FBA seller in the states where the Amazon warehouses are located. An additional FBA sales tax dilemma is that many of your FBA competitors do not register or file sales tax returns and if you do, your pricing might not be competitive. What do you do? You can outsource sales tax and use our sales tax filing service.

Sales tax nexus created by FBA warehouses: Having nexus in a state means that you are now treated like any other brick and mortar retailer in the state. This means that nonexempt merchandise sold on Amazon, Ebay, Sears, Rakuten, Bestbuy, Etsy, your website, and other channels becomes taxable. Therefore FBA sales tax must be collected for all taxable sales into that state where nexus is established via Amazon warehouse locations. We provide Tax outsourcing for FBA sales tax filing service.

Sales Tax Audit risks: You might be audited someday by one or all of the states where Amazon warehouses are located. If an auditor discovers you have nexus with taxable sales, and if no sales tax return was ever filed, it is common to look back 6 to 8 years to assess uncollected tax plus penalty and interest to be paid out of pocket. Are you comfortable taking this risk?

Solution#1: You can choose to opt out of Amazon FBA to avoid the FBA sales tax nexus issue and sales tax compliance in the near term. But as soon as the federal government pass a law on internet sales tax, many sellers will have sales tax nexus in all states.

Solution#2: We have a staff of former state sales tax auditors and can provide proper sales tax registration, Sales tax calculation service and Sales tax filing service.

Our FBA Sales Tax Advantages for non-resident FBA sellers:
If you are an overseas non-resident FBA seller, there is no need to open a USA bank account. No need to establish an entity in any state.

For more information, click FBA Sales Tax.

To help you with Sales and use Tax Questions in addition to the FBA sales tax filing, our professional sales tax consultants are experts in:

Sales Tax Filing Service
FBA Sales Tax Nexus
Sales Tax Preparation
File sales tax returns

Talk with a sales tax consultant. Please contact us for FBA Sales tax filing help assistance and information.