Need help with your Amazon sales tax compliance? Schedule a 1-hour consultation with Kexin here: calendly.com/ledgergurus-sales-tax/1-hour-sales-tax-consultation. Also, check out our sales tax course here - ledgergurus.com/resources/sales-tax-course-updates/. Or view our sales tax services and resources page: ledgergurus.com/services/sales-tax/
Hello, I appreciate your expertise and help and patience. I see you have answered many of the same questions. :) Question 1: Can you please reassure me there is nothing I need to do in regards to sales tax. 1) Amazon charges the Sales Tax when my item is sold 2) Amazon collects the sales tax when my item is sold 3) Amazon pays out my sales tax to all the states where I sell product to. 4) I need not do anything in regards to collecting and paying sales tax. Is this correct? Question 2: I understand Amazon doesnt handle sales tax for FL and MO and KS. If I have Nexus in these stat than I should register with the state to pay them Sales tax. Is this correct Question 3: What are the nexus levels for FL, MO and KS? Question 4: How do I find in my Amazon Seller Central what states my FBA storage has been held? Question 5: How do I find in my Amazon Seller Central my sales numbers for each state?
Great questions. In regards to the answers: Question 1: That is correct. Question 2: That is correct. Questions 3: The current thresholds are FL - no threshold because the state doesn't doesn't have economic nexus laws yet. You DO need to pay if you have sales tax nexus, though. This article explains it very well - www.taxjar.com/states/florida-sales-tax-online KS - $.01, meaning you have to pay sales tax on every transaction in KS MO - no threshold because the state doesn't doesn't have economic nexus laws yet. You DO need to pay if you have sales tax nexus, though. This article explains it very well - www.taxjar.com/states/missouri-sales-tax-online/ Questions 4 & 5: This video should answer your questions about Amazon Seller Central - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-n7xfob7ICPE.html
The best place to start with that is our download: "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business." ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/ It will give you 10 steps to follow to pay your taxes. The appendix is a great resource for when.
Hello! Thanks for your video, it was very helpful. I do have a couple of questions. 1. When I record the sales in QBO do I need to record the taxes that amazon collects on our behalf? If so how do I record them? 2. We already have nexus in 7 states and have permits there. We will still sell direct to customers in addition to the marketplace sales. I am curious what I need to record my returns for those states. For example, when I file my IN return do I record the amount of sales for only sales we sell direct to customers in IN? Or do I record the amount of direct sales we had to IN AND the amount of sales through Amazon to IN? And then record exempt sales for the Amazon sales? 3. When calculating whether I have nexus in a state do I only use my direct to customers sales dollars and order count or do I also include my amazon sales in calculating my nexus?
Hi! Sorry for the late reply! 1. Taxes collected by amazon should still be a sales tax liability that will clear out after amazon remits the tax. 2. It depends on the state. It’s safe to record both your direct sale to customers and through Amazon and take a deduction for amazon sales. 3. That also depends on the state, most states say gross sale which includes marketplace sales, about 5 states explicitly excludes marketplace sale.
Hi, thank you for the informative video and for taking the time to answer all the questions. I have gone through it and learned a lot. Now, I think I kinda understand the high level of sales tax implication. But one thing that still confused me is. Let's say I registered my company in a grey state and have the permit to collect tax from this state. Here are the questions that I have: 1. if I sell to all other states but $0 in the state that register my company. Am I correct that I will still need to file $0 tax in my home state? Then the revenue I file is $0 or I should use the entire revenue and put under "Exempt revenue"? 2. Then I also need to file tax in the states that Amazon keep my inventory (nexus). What confused me here is Amazon remits the tax for the states that I sell to. What revenue I suppose to file tax with nexus states? only sales occurred in those states, or if I don't have sales in that state? $0 too? 3. All in all, I need to file tax to the states that I register, my nexus states, and for the states that I sell to only in case of I reach economic nexus threshold? correct? it sounds weird from reconciliation standpoint. :-) Your answer is highly appreciated.
Yes for the first question you always need to file in your home state, even if it’s a $0 return. What do you mean a grey state? No state sales tax? Second question, if all your sales are through Amazon then you have very low exposure, you might not even need to register (it’s a business decision you’ll need to make), or you can register and file $0 returns, but the amounts should be you sales into that state then same amount for exemption. Three, you need to register where you have nexus, your product is taxable and exposure is material.
@@LedgerGurus Thank you so much for helping me clarifying the tax matter. Grey states mean the states that are in grey color when we do tax setting in Amazon seller account. I don't understand your comment about nexus state. so, I should file state sales tax based on revenue I sold in the nexus state too, correct?
@@gooffie29 When a state is in grey, it means Amazon takes care of the sales tax there. The only ones that aren't greyed out are Missouri and the 5 states without state sales tax laws. You may still have to deal with sales tax for local jurisdictions. For more information on Nexus and how to handle it, I suggest you download our 10 Steps for Sales Tax Compliance white paper. It's packed with valuable information - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
@@LedgerGurus I also Have question about MO, does that mean Amazon won't be able to remit the sales tax to MO for us, unless we register with MO state, getting the tax ID. Or is it safe to wait and see whether we have a lot of sales in MO and register with state and file the tax later? And does it need to wait till we reach economic nexus?
Hi, thanks for this video, very helpful. I still have a question, I live in Florida, once I set up the sales tax rate and Amazon collects the taxes do they remit them to the government or do I have to file those taxes in my state? Thank you so much!
Good question. Amazon takes care of both collecting and remitting sales tax in all the necessary states, except three - Florida, Kansas, and Missouri. Because you live in Florida, you are required to remit the sales tax for that state. For Missouri, you only have to pay sales tax if you have physical nexus there. And with Kansas, you have to pay sales tax on every single sale in that state.
Informative but... MS is on that Amazon list. I have a MS Sales and Tax permit. My home state is NY, where I have a Sales and Tax permit as well. I went into the MS State website and it showed that I had not filed/remitted taxes since Sept. They charged me over $700 for tax assessments and penalties. Zero sales in MS during those months by the way. So who's responsible, Amazon?
Hi. Great videos always. Two questions. First one: Do you recommend or not to Enroll in the Amazon Tax Exemption Program at the bottom of the page when adding a State? Second one: At the top of the page, in Taxability, should I select both (Gift Wrap and Shipping & Handling)? Thank very much.
You should enroll in that program so Amazon will collect exemption certificates for you if you have any exempt sales. It depends on the state if gift wrap & S&H are taxable.
@@LedgerGurus Thank you for your reply. For the Taxability, the State is Missouri. Do you know if I should I select both (Gift Wrap and Shipping & Handling)? Thank you again.
@@imagoadvertising426 Gift wrap is not taxable in MO. For more information on other states, click here - www.taxjar.com/blog/services/sales-tax-on-gift-wrapping This is a good place to see about the shipping & handling taxes - www.avalara.com/taxrates/en/state-rates/missouri/missouri-sales-tax-guide.html
@@LedgerGurus Awesome, thank you very much. I sent these days and email to your company, I would like to know if you guys have on the team someone that can assist in Spanish. If yes, I would like to have the contact information :)
CA is very aggressive towards amazon sellers, especially if you use FBA. I would recommend you getting registered with CDTFA and report your amazon sales on the return but take the same amount as a deduction under “marketplace facilitated sales” so you don’t owe them anything (since Amazon already collected and remitted to CA).
@@LedgerGurus thank you so much I have another question if I sell some goods on amazon and some goods export them to overseas. What I should to do in this situation.
Hi! First of all thanks a lot for this informative video. It is very helpful. Secondly, in my situation I have a LLC bases in state of Virginia and business account on seller central with all the required resale tax information. My question is I have been filing sale taxes on the Virginia state website by filing every field as NILL since I was told although for Virginia amazon is collecting and remitting taxes we still have to fill on the state website. For Virginia it’s every month . I have been filing but putting 0 on all the fields on the state websiteZ let me know if that’s the correct why to do ? The fields are Gross sales : I have put $0 Personal use: $0 Exempt sales : $0 Qualifying food sales and use: $0 Essential personal hygiene: $0 Prepaid wireless item sold: $0 This is what I have been filing on state tax website even though I have been selling a lot for the last three months on amazon
I would actually put the sale into VA through amazon as gross sales and put the same amount either as “exempt sales” or deductions (consignment or marketplace), so you eventually get $0 tax liability but can provide information of your actual sale through Amazon to the state. Let me know if that doesn’t make sense.
Hi! Thank you for this informative video! I am confused on how to know where to apply for the sellers permit. Do we register for a permit depending on which Amazon fulfillment center is used?
ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-I1bLb5SCk4I.html this video should answer your question. Let us know if you still have questions after watching this.
Hi I love your videos. I just have a question though... how can I know if Amazon really remitted my sales tax and how much they remitted for me? I can't find any reports in the Amazon Seller Central.
Thank you for your support! Try going to tax document library and download the combined report. You should see the responsible party is marketplace - amazon.
Hi, Thank you so much for such a comprehensive video, i have a very basic question if you can answer it would be greatly appreciated. Suppose i have registered for sales tax in texas, then while filing for sales tax returns i just have to file the sales i have done in texas only, is it right? What about the other states, do we ignore them at all while filing??
Your Texas sales tax return should only include sales going into Texas. The other states, if you registered and collected, then remit them accordingly.
Hi, Thanks for this video, I appreciate your expertise and help, and patience, it really helps us a lot! But I am bit confused, I have few questions: 1)I am an Amazon business seller based in California. All of my inventory are in California. Fulfilled /ship by myself, not FBA. But I do ship my orders from California to these states: Florida, Kansas and Missouri.…Does that mean I have nexus with them? Do I have to add those states in the state tax setting on amazon central? 2) I’m a little confused as I haven't yet set up sales tax collection under seller central's "Tax settings" for Missouri, Florida, or Kansas.I just generated a custom tax remittance form from my seller central account. The csv file was blank….. 3)Also, since amazon collect all the sales tax for us, do they remit/ pay the sales tax for us ? Or as a business seller, I have to download all the report and file report with accountant? Do we have to file the tax by myself for my case? Thank you !
It sounds like you need to schedule a sales tax consultation. Our expert will be able to answer all these questions for you. calendly.com/ledgergurus-sales-tax/
Hello, Thanks for your video, it was very helpful! I have only one question. Since Amazon collects the sales tax for most of the states, do I need to close the account I previously used to fill sales tax? Or do I still need to file sales tax as $0 because I have opened a lot of accounts and filled it in for a few years?
Great and informative video. My Amazon seller account shows 5 States as not being grayed: Delaware, Missouri, Montana, New Hampshire, and Oregon. Do I need to register with them? Also, my Amazon Combine Sales Report shows Empty the Tax section I am responsible for but does show the tax amounts collected by Amazon. Any suggestions why is this taking place. Thanks.
You don't need to worry about registering in DE, MT, NH, and OR because they don't have sales tax in those states. MO’s economic nexus doesn’t start until January 1, 2023, so you only need to register in MO if you have a physical presence there. On the reports, if you don’t see any transaction you are responsible for, that just means Amazon is collecting and remitting for you on all your sales. I would just double-check on MO.
Hi I want to thank you for all those information. But I’m still confused about sales taxes . I have a couple questions for you. 1 Amazon collect and remit sales taxes in most states for us do I need to still register with those states to file? Even if it 0 $? 2 I have been selling for more than 2 years how do I register with Florida to collect and remit those past taxes?
Don't worry about being confused. This is a SERIOUSLY confusing topic! Hopefully we can help. 1. A good place to start on the Amazon question is this video - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-RdwXMCxF4-s.html. That should start answering your questions, and then we can help you any further ones. 2. I would go to FL department of revenue’s website and register for a sales tax license first. On the registration you would want to put when you started business (2 years ago) as the effective date, that’ll trigger the state to generate back filing liabilities for you. Our "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" download is also a great resource for determining your sales tax liabilities One more thing, we at LedgerGurus are in the process of creating a course for online sellers to teach them how to register, file, and remit sales tax. We want to make sure that we are providing exactly what online sellers need and are looking for. Would you be interested in giving us a few minutes of your time so we can ask you some questions. If so, please click this link to schedule a time - calendly.com/kelleybirrell. Thank you!
I just realized I forgot to give you the link for our download. Oops! ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
I am an Amazon seller in Texas. I do Fulfilled by Merchant. If Amazon is collecting my sales tax and remitting that to my state then why would I receive a penalty for not submitting my sales tax form for the quarter? And if I log into my account on TX Comptroller, there isn't a single entry showing that Amazon has submitted anything on my behalf. This just seems like it would be an audit issue? It wasn't until last month that I even realized that Amazon had supposedly collecting and remitting on my behalf so I continue to also pay sales tax. Essentially paying twice. I will amend my sales tax forms but I need to understand how this works going forward.
As long as your products are sold on amazon.com, amazon is responsible for collecting and remitting sales tax collected on your sales into Texas. You can find out exactly how much amazon remitted by downloading reports - tax document library - select either the combined or marketplace report and filter by Texas. Amazon files one single return to Texas that includes all their sellers’ sales information to Texas, but amazon doesn’t go into your Texas account and file it for you. You should be able to report the gross sale and take the same amount of deduction on your Texas sales tax return, resulting in a $0 liability return if all your sales are through amazon.
@@LedgerGurus Just to have a knowledge I would like to know that should FBA sellers make a return? like michelle asks? Should she obliged to get a Tax ID in texas
I am still confused with a lot of this terminology. I am a nonresident living in canada but our LLC is registered in Texas. All our inventory is shipped to amazon USA. Question I have is that gross sales reporting for sales tax filing in Texas is just the total sales without tax which have tax jurisdiction as Texas? or is it all the sales in the us ? Tax jurisdiction is the filter option I am using from the tax report I download for each month.
Just to clarify, you do NOT have to file sales and use tax if Amazon manages sales and use tax for you? I heard somewhere that you have to file anyway and put 0 or something. PLEASE CONFIRM. Thank you
The requirement differs state by state. If you are registered in a state that Amazon is collecting and remitting, I would still file a zero return. If you are not registered, then your exposure is zero and it’s up to you if you want to register and file zero returns.
@@LedgerGurus Okay, I see. I currently have Nexus in 7 differen't states. Amazon collects and remits and all those states. You are saying that I am NOT required to register and file zero returns? It's not mandatory if Amazon already collects and remits on your behalf, right?
@@TheHoang04 If it's in one of the 43 states that Amazon already collects and files in, then you'd just need to file a zero return. The question is whether it is practical. Legally it's required, but our experts think that it's not practical.
Hi Thank you for the video. There are many states that I have economic nexus in based solely on Amazon sales. I was wondering if I have to register and file in all of those states?
Hi! I have a complicated question... With my current client, he’s an Amazon seller and he have two companies. ABC Company - established 2016 XYZ Company - established May 2020 He created another Amazon seller account but the complicated part is he put the NEW Amazon account under ABC Company and the OLD Amazon account under the newer company, XYZ. Does this affect the remittance of sales tax to the authorities? Like it should be under a company right? And I am not sure which is which. Please let me know. 🙏
Hi Rae! We have a couple of additional questions in order to answer this question. Feel free to schedule a consultation with our sales tax team here: calendly.com/ledgergurus-sales-tax
I'm in Florida as an individual seller so Amazon doesn't allow me to set state parameters for sales tax. I just opened a Florida Seller Certificate, but have never used it. When I go to Tax Documents under Reports, it just says " According to our records, your seller account did not meet both of the Form 1099-K threshold requirements of $20k of unadjusted gross sales and 200 transactions. No Form 1099-K is available". I have made a few sales in FL, KS and Missouri since I began in September, 2020. What to do as an individual seller? Thank you for your info!
Since you are physically in FL, we recommend you register and collect sales fax in FL. You can add the state in amazon seller central - settings - tax after you register. Don't worry about MO because they don’t have economic nexus laws for remote seller yet and KS’ economic nexus doesn’t have a threshold, which is not practical in our opinion. You can decide on KS (their DOR says if you make one sale you need to register and remit sales tax, but no threshold for small businesses is not constitutional and their AG doesn’t agree with DOR so we are not sure how this no threshold can ever be enforced)
I appreciate your video. Thank you. I’m planning to start my Amazon FBM this month and I want to make sure I understand the sales tax process. My home office is in Kansas, and I have no nexus in other states. I saw that since July 1st last year, Amazon automatically remits/reports Kansas sales taxes. Do I still need a to apply for seller’s permit in Kansas? This will be my first time doing business. Do I have other responsibilities in regards to sales tax? Thank you again.
Hi! You still need to register in Kansas because you are physically located in Kansas. You can file a zero dollar liability return since Amazon is collecting and remitting for you.
Thank you so much for this info. I’m selling on Amazon as in FBA and FBM My located is in CA also I have resale permit from CA state. Amazon collect the sale tax what should I do for this situation. And What about Ebay and Walmart.
- So to my understanding all the states in grey Amazon automatically handles collecting sales tax correct ? Also If I have a nexus in one of those grey out states does it matter since I can’t put in my info. - I only ask this because from understanding we only collected taxes from states we had a nexus in until we went over the threshold of so many sales or transactions. Therefore I would be collecting sales tax for all greyed out states correct?
If you're only selling on Amazon, you don't really have to worry about any of this anyway. Amazon is already taking care of collecting and remitting sales tax is all the greyed-out states for you.
LOL! Actually, that makes you job harder because now you have to deal with Missouri sales tax yourself. Amazon won't take care of it until Jan 1, 2023. If you need some guidance on how to do it, I suggest you download our 10 Steps for Sales Tax Compliance PDF. It's packed with valuable information that you'll need. ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
@@AtlasShrugged81 If you blocked sales to those 3 states, then you would not need to collect and therefore remit any sales tax in those states. Amazon would be collecting and remitting in all the other states. Unfortunately Amazon does not allow you to block sales in certain states. You can note in the product description that you don't ship to those states. Then if sales still come through in those states, you'd just need to cancel them.
Just so I understand, do I only need to determine if I have nexus in the 3 states that amazon doesn't cover? Also, do I remit sales tax to all states or does Amazon remit to the other 47?
Amazon takes care of remittance for the other 47. And technically it's good to know in what states you have nexus, even if Amazon is taking care of sales tax. Some sellers choose to register in those states and file a $0 return. This keeps the states from coming to you and asking for proof you don't owe anything. We suggest at least registering in your home state and filing a $0 return if it's a marketplace facilitator state.
Hi ! Amazon marketplace do say that because of marketplace facilitator law they will be collecting state sales taxes and remitting it to the respective state. Do we still need to file the returns? Also Amazon do say that they're not liable to collect local taxes ( county) , do we need to calculate it ourselves and file it with respective states ?
Legally you have to file $0 returns. About the local taxes, I believe that Amazon is not collecting and remitting sales tax in certain home ruled cities. I would first check to see if you have a nexus in those cities and if you do, you’ll need to separately register with them and collect sales tax.
Question- I live and run my Amazon seller business from Idaho. I received a letter from our tax commission stating that I need to fill a return for my sales tax. I thought Amazon did the remittance. I’m confused.
Yes Amazon collects and remits it for you but since Idaho is your home state you still have a filing obligation. You don’t owe any tax since Amazon already collected and remitted everything. I would recommend you watching my video on how to file a $0 sales tax return and apply the same principle to your Idaho return.
Hi! This is awesome. Just so that’s I ‘ am understanding correctly. I only need to register in the states that I have physical nexus and Amazon does NOT collect and remit taxes for? Thanks so much for all this!!
Thanks so much for your help. And kindness in responding to everyone that ask a question. I appreciate it a ton! As we grow we will def be keeping you guys as top option in helping us maintain our e-commerce buisness going perfect. We are still super small! Thanks again!
@@moereyes2287 Yay!!! That's makes us delighted to hear! Good luck with your business, and we're here when you're ready to outsource your accounting. :)
@@LedgerGurus thank you!!!! One last question, one I had MO to my seller central do they begin collecting and remitting? Or do I have to pull up my reports and remit myself? Or do I file zero if they remit it? Where does the tax $ they collect? Just want to make sure.
@@moereyes2287 Amazon will collect for Missouri and then give you back the money, but you'll have to pull reports and remit yourself. MO's marketplace facilitator laws won't go into effect until Jan 1, 2023, so you'll have to do this until then.
Hi there! Texas e-com business here, without a physical presence in Missouri. To clarify, I do NOT need to begin collecting and remitting sales tax to Missouri until Jan 2023, correct?
If you don’t have physical presence in MO, you don’t need to worry about sales tax. MO will enact economic nexus presence law in January 2023, but by that time amazon will collect and remit on their sellers’ behalf. So if all your sales are through Amazon, you don’t need to do anything either. So to summarize, you only need to collect and file in Missouri if you have physical presence now or if you have economic presence after January 2023 AND your sales are not through Amazon.
Great video - a quick question, when I select all states for taxes - Amazon shows me 5 states Delaware, Missouri, Montana, New Hamsphire and Oregon as an option to collect and remit taxes as compared to only three in your video? Are there any recent changes?
Delaware, Montana, New Hampshire, Oregon, and Alaska do not have a state-wide sales tax. Missouri is the only state from the remaining 46 (District of Columbia is included in this number) that does not have a marketplace facilitator law in place yet. That'll go into effect January 1, 2023. What this means is that Missouri is the only state you need to worry about collecting from and that is only if you have a physical presence in that state.
@@LedgerGurus So Florida and Kansas Amazon is now responsible for collecting and remitting sales tax? I live in Missouri - which is the last to join the party?! Haha. How do I know what to place in the Amazon PTC field? Should I just used A_Gen_Tax since I sell little bit of everything? thank you!
Thank you for the information. Could you please also tell how to activate this tax information on Amazon Seller Central. What information do we need to fill and how? Thak you
@@citosminis Yes, we our sales tax services include registering in the necessary states for sales tax permits. If you are interested, you can contact us here: ledgergurus.com/services/sales-tax/
Great video! I'm an Amazon FBA seller and have had some inventory get shipped to warehouses in Florida, Kansas, Oregon and Missouri (these states are not found in the list of states in Amazons Tax Settings) and items have been shipped out from there to customers. Do I need to register to each one of those states since I technically have physical nexus there since my items are at the warehouses in those states? I currently need to file for my Sales and Use Tax return in California for Oct 2020 - Dec 2020 and was wondering if I need to do this. Thanks!
Great question. The reason those 4 states are not found in Amazon's list is that Oregon doesn't have a state sales tax and the other three (Florida, Kansas, and Missouri) do not have marketplace facilitator laws. You do need to register and remit in those three states because you have physical nexus there.
@@LedgerGurus Awesome. Thank you! Another question: Since Amazon takes care of remitting taxes in California. Do I report $0 when filing my Sales and Use Tax return in CA?
Hello, If Amazon is collecting sales tax and sending it in to the states, Do we as a FBA seller have to have Tax ID for each state. Also July 1 2021 Amazon is required to collect tax for Florida and Kansas, does that mean I should cancel my Tax ID for thoes states.
No, you don’t need tax ID for each state. If you have inventory stored in FL and KS through FBA, the safest way is to keep your licenses in those states and file zero returns. You can contact the states and ask them to change your filing frequency to annual to ease the administrative burden.
Hi - thank you for this helpful video, I've been all over the internet today trying to figure out my sales tax liability. I launched an Amazon FBA business in July of last year (very small, less than $10k revenue) based in California and selling only in the US. I just generated a custom tax remittance form from my seller central account. The csv file was blank. My presumption from your video and this csv is that I don't need to file sales tax, but I'm a little confused as I haven't yet set up sales tax collection under seller central's "Tax settings" for Missouri, Florida, or Kansas. Do you have any guidance here on if I owe sales tax, or how best to proceed? Also, do you offer any general amazon tax filing advice, still need to figure out filing for my non-sales tax LLC income tax and would be potentially interested in your services.
We can certainly help you. You probably don't have to worry about sales tax for Missouri or Florida yet, though you might in Kansas. Email me, and I can give you some options for sales tax guidance. kbirrell@ledgergurus.com
Although I haven't read all off the comments below to see if this question has already been asked but what are my obligations as non-us resident? I do have an EIN
@@LedgerGurus Thank you for your reply. This being the case then I guess I have to have Amazon deal with sales tax for Florida and Kansas, To do this I need to enter a "license number" in the State Tax Registration Number" field. If this is not my EIN then how do I obtain a license number?
@@nealadams6826 Amazon will automatically remit sales tax from FL and KS because both of them recently (on July 1st) enacted marketplace facilitator laws. The only state you need to worry about is Missouri, and that's only if you have a physical presence there. We recently did a comprehensive sales tax webinar. If you'd like to really understand your obligations regarding sales tax, I suggest you watch it. Click here to access the on-demand link - ledgergurus.com/resources/sales-tax-course-updates/
You need to have a sales tax permit in the state you're located in, as well as any other states where you have nexus. You will only need to file $0 returns since Amazon is remitting for you, but you'll still need to be registered.
Hi, I just started my Amazon FBA PL business in December and do not yet have an LLC. Regarding sales taxes, I'm really confused. Some claim that Amazon handles everything on the part of the seller. Some claim that even while Amazon collects sales tax on behalf of the seller, we still need to remit it to the appropriate taxing authorities. Would you kindly explain what is correct and whether the seller needs to take any specific actions in relation to sales tax? Thank you so much for advice.
@@LedgerGurus thank you so much for the reply. 1-There are four states that are excluded from the Amazon Marketplace: NH, DE, OR, and MT. I observed sales of my single item in OR. My location is in VA, and my inventory is in NY and NJ. Which state should I register for the tax now? 2- If I don't yet have an LLC, am I still able to register for sales tax in these states?
Hello, thank u for answers 🙌🏻 Am I understand correct? I don’t need sales tax registration number , registry to each 50 state of USA to collect sales tax? Amazon did it for me ? And only this 4 states will ask me sales tax registration ? But from 1 July new law that from only one state Amazon don’t collect and remit taxes? And only one state ask me registration amazon automatically registered for me ? Or I must register by myself each state of USA where I want sales ?
You will only register in states in which you've passed the economic threshold OR if you have a physical presence there, such as inventory. Amazon will not register for you. That's your job. Amazon only collects and remits for you, but you still have to register after you pass the thresholds. The one state that Amazon will not remit for you is Missouri. Their marketplace facilitator law doesn't go into effect until January 1, 2023. And DON'T register until AFTER you hit the thresholds. That just creates a mess! For a complete and up-to-date list of thresholds, download our PDF "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
@@LedgerGurus thank u for answer, if I pass threshold by each state law , amazon will remind me that I have to register ? Why we must register after threshold law passing ? If I will not register amazon will block me?
@@quranlistencollectrewards2492 Amazon will not make you register because Amazon is collecting and remitting on your behalf. Your risk exposure is very minimum if you don’t register. Come to our free webinar next Wednesday! We have a dedicated section for amazon sellers! Here's the link, if you're interested in attending - us02web.zoom.us/webinar/register/2516201639771/WN_iGCKdoY1QjSlMQft8GmUXQ
@@LedgerGurus Ledger is it a must that we should register the TaxID number for the states that FBA inventory is stored? Because Amazon is already collecting and remitting for fba sellers, should we additionally register for sales id number? You said that after you reached nexus we should register but why if amazon is also collects and remit why should we also let the state know our sales as well?
@@pinkboyhandmadejewelry3524 if you are only selling on Amazon through FBA, because Amazon is collecting and remitting for you, your risk exposure is almost $0, so there’s not much risk in not registering. But if you sell anything outside of amazon, that changes things.
Hello, I am an Amazon FBA seller. Can you please reassure me there is nothing I need to do in regards to sales tax. 1) Amazon charges the Sales Tax when my item is sold 2) Amazon collects the sales tax when my item is sold 3) Amazon pays out my sales tax to all the states where I sell product to. 4) I need not do anything in regards to collecting and paying sales tax. Is this correct?
As of today, this is true for all states except MO, FL, and KS. Amazon doesn't handle sales tax in those states. So if you have nexus in those states (watch this video to understand nexus: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html) then you would need to register for a permit in the necessary states, setup Amazon seller Central to charge and collect sales tax in those states, and then file/remit to the state. Remember that if your Amazon FBA inventory is help in any of those states, that creates nexus. The states you have nexus in outside of those three, you can also get a permit and file $0 returns if you would like to. This would keep the states away from coming after you and having to prove you don't owe anything.
I never buy anything off Amazon as I always find it cheaper elsewhere. I also do not support these huge company’s that do not pay enough tax internationally. No matter what you want to buy do not be lazy & assuming Amazon is the cheapest or I will just click on the app as I have an Amazon account, spend a little extra time searching like I do & I always find a better deal. I am not just saying this it’s fact. Also you will probably find most of the time you are supporting a family run business . Keep safe & just spend a little more time getting that better deal. 👍
I'm in FL and got my sales and use tax license. Do I also need to apply for a sales and use tax for the the other states like Missouri and Kansas? Or do I only need it for the state I live in? It's a little confusing.
If you have sales in Kansas, you definitely need to apply in Kansas. If you have inventory in Missouri, you need to apply there. If not, you don't need to yet.
@@stephenday8833 Definitely wait until you've got sales there. Yes, we do have bookkeeping and sales tax services, though not income tax services. If you'd like more information, go here: ledgergurus.com/services/
Hi, why am I being charged tax if Amazon is collecting the taxes from the customer. Shouldn’t Amazon be the one paying the taxes when filing sales and use tax? I have a nexus in Tennessee and I started selling on 8/26/2020. I know that Amazon became a Marketplace Facilitator on 10/01/2020, so that means I am responsible for collecting and filing taxes for 8/26-10/1. My concern is, why did Amazon still collect the taxes from the customers? Shouldn’t the taxes go to me and I can remit them? Please help!
A good place to start would be to download our "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/. It's got a great list of things to do to get up to speed with your sales tax.
Hi, thank you for that helpful video! Im an amazon seller from germany and I want to expand the business to the usa. So I think I know everything necessary about sales taxes and nexus but there is one question left. I am getting a NEXUS if I will store products in the usa. So lets say I will ship the first FBA products to the us and amazon will store them in lets say Arizona. Arizona sales taxes are handeled from amazon directly. But I am storing products there now. Is it necessary to register my company for a nexus in Arizona then in addition? Or is it fine like it is? And if Amazon distributes the goods in 10 or more department stores, would I have to trigger a nexus in each of these states? That would be very cumbersome if you consider that almost all states are handled directly by Amazon as far as the economic nexus is concerned. Additional information: In the us I am only selling through amazon fba, no other sales channels. Thank you for your answers!
There are only a handful of states that are actively pursuing Amazon sellers that have inventory in FBA warehouses. So, practically you don’t need to worry as a foreign seller. Also, the bottom line is if a state comes to audit you, your exposure is only missing filing of some zero dollar returns. To me the risk is pretty low. We recently did a webinar specifically talking to amazon only sellers that I think will be super helpful to you! Here’s the link: ledgergurus.com/resources/sales-tax-masterclass/
hy i have a quick question do i need to file sales tax even if amazonn alray remmitted? i only sell online on amazon not sure if i need to file sales tax or not
PLEASE HELP! I live in Florida. My Tax Document Library won't pull anything up but the columns. I didn't set up my State Tax right in settings and I checked the combine reports and all I see is market facilitator transactions. I'm So Confused!! What Should I do? I just received a letter from Florida State Revenue that I owe an estimated amount of $2342 . However, I only sold for 2 months last year, sales were around 7k minus all amazons expenses and fees. There is no way I owe su much money on taxes !! Please Help
Hi Paola, this sounds like a pain! You can schedule a consultation here if you would like us to help you out. Hopefully we can save you some money: calendly.com/ledgergurus-sales-tax/
Hello, I live in New York and sell on Amazon. When filing my state sales tax form ST-100. Am I required to input my gross sales or can that be zero? I accidentally put my gross sales dated from December 1st - present instead of what it calls for of December 1st -February 21st causing it to think I made more sales when I did not in that time frame. I understand Amazon collects and remits sales tax for me. In NY are you required to have a certificate of authority when selling on Amazon? I started selling on Amazon in December so I’m really new to the tax part of being a new business owner .
Since you live in New York, you are required to apply for a certificate of authority in NY. I would put gross sales number on your return and use the same number as deduction/exemption to arrive at $0 liability.
@@shannonsmith9386 which state is this for? Depending on the state you either put 0 as taxable sale or use a deduction. See the video here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-BlxgcWxPgt8.html
At this point, you don't have to worry about sales tax in Florida unless you have physical nexus there. We are launching a course soon on sales tax for small business owners. To learn more, click here: ledgergurus.com/resources/sales-tax-course-updates/
If you don't have a physical presence in the US (business registered US, employees living in US, inventory held in US, etc.) then you likely only need to worry about sales tax if you have a high amount of annual sales or transactions in any state. Once you hit $100K in annual sales or 200 transactions in any state, you should look into their economic nexus laws. Here's another video to help: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html
Hi! Thanks for this. But im a little confused. Since amazon will collect and remit sales taxes on my behalf for most states and I only have sales tax permit in california, what shOuld I do? Should i register with other states too? Also, I just registered last month but have been selling in amazon since january. Is the sales tax collection and remit feature automatically turned on in nmy amazon seller acct, or should i change any settings? (im based in CA)
If you only have nexus in CA, then amazon takes care of it and you don’t need to do anything in the settings. If you have nexus in FL or MO or KD where amazon is not collecting and remitting, you need to register and turn on the tax settings for those states. Amazon has been automatically collecting tax in the states based on when their marketplace facilitator law went into effect, which was April 2019, so you don’t need to worry about it.
@@LedgerGurus Hi, in line with this. Do we need to get a tax permit for those states that Amazon doesn't collect? I do have a tax permit in Mississippi. Also, what do you mean by nexus?. Is it different from a Sales tax permit?. TIA =)
If you have nexus in the states that Amazon is not collecting, you'll need to register with those states (FL, MO and KS) and double check that your settings are turned on to collect in those states. Nexus means a connection with the state, either physical nexus (people and property) or economic nexus (sales volume and revenue).
@@LedgerGurus Hi, can you confirm this for me. So, I sent part of my inventory to the Florida warehouse, so I know for sureI have a nexus in Florida, but Amazon tends to transfer my products to different warehouses all over the states. Do I need to worry about the Nexus's that Amazon transfers my products from the initial Nexus (Florida) to other states?
@@TheHoang04 yes, you need to be aware of where Amazon is sending your products. You won't have to worry about remitting sales tax on them because of the marketplace facilitator laws unless they're being sent to Kansas or Missouri.
Thank you for the content! Maybe I’m overthinking this, but I’m trying to confirm for what states I need to go to the DOR and get a register for a Sales Tax License. So for example - I live in NY, which is where I will be running my FBA from. Amazon collects and remits Sales Tax for NY. Do I need to register for a Sales Tax License with the NY DOR?
Hi! Since you live in NY, even though Amazon collects and remits for you, NY DOR still want you to report to them how much sales you make. You can then take that amount and use it as a deduction, so you end up with $0 tax liability.
If you live in CA, that's physical presence so you will need to get a permit. If all your sales are through Amazon, you will report sales as gross sale and as deduction so you have $0 liability to report.
@@LedgerGurus hello I have a foreigner LLC I live in Turkey but my LLC's address is in NewYork does this address qualify me a physical nexus? I am not storing inventory there
No you don’t need to, unless your license is with KS MO or FL. One more thing, we at LedgerGurus are in the process of creating a course for online sellers to teach them how to register, file, and remit sales tax. We want to make sure that we are providing exactly what online sellers need and are looking for. Would you be interested in giving us a few minutes of your time so we can ask you some questions? If so, please click this link to schedule a time - calendly.com/kelleybirrell. Thank you!
Hey I have created Amazon seller account from U.K with U.K LTD I'm trying to sell in in USA Market 🇺🇸 How Can I Tax exempt Do I have to Tax exempt in USA and UK or Just In USA I'm bit confused what should I do please help thanks
Hello how are you I am FBM seller based on New York. I have state registration number so I have to add that on tax settings or not. My all inventory in New York so I need to file sale tax as $0
Hi, thanks for this video, .As a newcomer to Amazon not in US and I want to do online arbitrage, if I set up a company in Wyoming, but both the 3PL warehouse and Amazon warehouse are in Delaware, do I need to pay sales tax? Do you have any good advice on which state to set up a company in? thanks
@@LedgerGurus Im not in a grey state (FL) and my inventory will go to all states where Amz have warehouse (grey and not grey) so i’ll have nexus in several states (both grey and not grey)
Amazon will collect and remit in all the grey states, we would recommend you register and file in FL and other non-grey states that you have inventory in through FBA.
I appreciate your video and answers. But, another video said i must register and file with grey states aswell (where my inventory goes). Of course in grey states i wouldnt have to pay bc Amz remits for me. Im confused now what is the correct way to do it.
Hi, 2020 was my first year as an Amazon FBA bookseller, I bought all of my inventory in Florida, Georgia and South Carolina and paid sales tax on the purchases. I do not have a sales tax certificate from these states. Do I have any sales tax liability since I paid taxes on the initial purchases?
If we understand your situation correctly, you don't have any sales tax liability. To avoid paying sales tax to your vendor for inventory purchases, you will need to get resale certificates to provide them.
Hi Sidra, in states where you have sales tax "nexus" (most likely where you have a physical presence or lots of sales) you can register for sales tax permit on their department of revenue website. But Amazon is required to collect sales tax for its sellers in all but 3 states in the US, as of today. For more info on sales tax nexus, you can watch our other video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html
Hello @LedgerGurus, hope all as well! I need a little guidance, and in advance, thank you for assisting! I downloaded the Sales Tax Report from the Amazon Seller Central dashboard. For May 2021, it shows a total of sales taxes collected of $113.79 from the 3 states Florida, Missouri, and Kansas. I also checked my Taxjar account and it shows no nexus in those 3 states for May. Do I have to file the total sales taxes collected from Florida, Kansas, & Missouri of $113.79 in my state (IN)? or do I have to file in those 3 states separately?
First of all, you remit sales tax TO the state from which it is collected, NOT your own state. If you do not have nexus in those three states, you should not have your Amazon settings turned on to collect tax there. Missouri and Florida require a physical nexus to pay sales tax there. Kansas expects sales tax to be paid on all qualified sales in that state. You can determine what you need to send to each state by analyzing your Sales Tax Report from Seller Central and running a pivot table. Here is a blog showing you how to read the report - ledgergurus.com/blog/how-to-find-and-understand-your-amazon-sales-tax-report/. The section on running a pivot table may be a bit confusing, but Kexin explains it SUPER well in this video - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-RWZHnD0AEwo.html. Her explanation starts at 7:16.
