Amazon Will Collect & Remit Sales Tax in All States….. What About FBA Sellers?
FBA Sellers, Don’t get too excited about the headlines this week which state Amazon is now required to collect and remit sales tax come April 1st. While this news is true, it only affects products that Amazon sells directly. It does not affect third-party sellers using Amazon’s platform. Third-party sellers are NOT part of the agreements with the states.
Third-Party Amazon Sellers Using FBA are Still Required to Collect and Remit Sales Tax in all FBA States where Your Stock is Located!
This news is good for local retailers who will no longer be at a 6-8% price disadvantage due to taxes, but it does not affect 3rd party Amazon FBA sellers. Third Party sellers are still required to calculate and remit their own taxes in each state where they have a nexus presence.
Update April 2019: In the new marketplace facilitator state’s Amazon is now going to be collecting and remitting sales tax in 22 states! Several states you still need to register for a sales tax permit and file a sales tax return even if you are only selling on Amazon. If you are selling on other non-marketplace facilitator platforms (your own web site, Shopify…) you will need to collect and remit sales tax on those sales.
Don’t be surprised if you hear from your CPA stating they were right to think you didn’t have to collect sales tax outside of your home state. This information is still wrong! Third Party Amazon FBA Sellers MUST Still Collect and Remit Sales Tax in States they have a Nexus Presence!!
The Good New is……Sales Tax System is still here to help! STS will provide you with the vital steps to apply for a sales tax permits or licenses in each FBA state. The first step needed to begin charge sales tax. We will help you with the first step then guide you through the rest!