FBA Sales Tax
October 13, 2020
FBA Sales Tax: At the time of this writing, Amazon remits sales tax for the FBA seller
in all states except a handful of states (about 5). It is expected in the future that the remaining states will require Amazon to collect sales tax
on behalf of FBA sellers. If you sell outside of Amazon such as on a website, then you may be liable to collect sales tax given Amazon is not
responsible to remit the website tax on your behalf.
You can outsource sales tax registrations and filings by signing up to use our Managed sales tax filing service.
Sales tax nexus: Nexus is created via having physical presence in a state, such as having employees, office, warehouse, agents, etc.
Nexus is also created if certain economic nexus thresholds are met, such as ($100,000/year or 200 sales/year) in a state. The nexus thresholds are
different in each state. You can search the internet using keywords "Sales tax economic nexus" and plenty of websites will display the thresholds.
Given the economic nexus thresholds may change from time to time, it may be ideal to contact the state for verification purposes.
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 10+ years to assess uncollected taxes plus penalty and interest to be paid out of pocket.
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.