FBA Sales Tax
The Supreme Court has ruled in favor of South Dakota which implies that all states may require some remote sellers to remit sales tax according to state law.
Depending on a sales activities, you might have sales tax nexus in a state even if there is no physical presence.
We can register and file sales tax returns in all jurisdictions. In addition, we have strong expertise to defend you in a sales tax audit.
FBA Sales Tax Problem: You are about to 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, sales taxes are required to be collected
in the states where the Amazon warehouses are located.
You can outsource sales tax registrations and filings by signing up to 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.
Furthermore, the Supreme Court decision has allowed the States to enforce laws requiring
some remote sellers to collect sales tax even if there is no inventory in any Amazon fulfillment center.
We provide Sales Tax outsourcing services for FBA sales tax registration and filing service.
Sales Tax Audit risks:
You might be audited someday by one or all of the states. In contrast with many filing service providers who have no expertise handling audits,
we can defend against sales tax auditors.
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 taxes plus penalty and interest to be paid out of pocket.
Due to the Supreme Court decision, the risks for many sellers have and will increase to many more states.
Solution: We have a staff of former state sales tax auditors and can provide proper sales tax registration,
Sales tax calculation service
Sales tax filing service.
We know most of the sales tax service providers out there, and can save you time by sharing clients' experience associated with each provider or method.
Please contact us to learn this important information.
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.
We can register your nonUSA company for sales tax purpose.