Amazon Sellers Sales Tax FAQs

[@LedgerGurus]

Thanks for watching! What questions do you still have about Amazon sales tax?

[@AR-ok6bl]

Thank you so much for all the great information. Wow you are the first person that I actually understand and that makes it not scary. Thank you

[@LedgerGurus]

So glad you found it helpful! Let us know if you have any follow up questions!

[@DouglasABailey]

Thanks for the great content. Any chance of an early 2023 update on what Amazon is not taking care of? 1) I'm pretty sure Pennsylvania's plans to pursue remote sellers got knocked back by their own courts? 2) Googling for info on Wisconsin Income Tax as is relates to Amazon FBA sellers I couldn't find anything. 3) I believe Colorado now has at least 40 of 70 Home Rule jurisdictions all using a central tax portal - but that might not translate to Amazon doing anything new there. I'm about to start a company selling only through Amazon FBA with no other physical nexus and I'm trying to work out which states I need to register in to file the $0 returns. (I'm pleased to hear Missouri has now enacted their marketplace facilitator laws.) (I have a single member LLC in WY.) Thanks for any updates. I'm about to read your 10 Steps PDF but I don't see a date on it so really hoping it's up to date.

[@LedgerGurus]

Pennsylvania - www.avalara.com/blog/en/north-america/2022/09/fba-inventory-in-pennsylvania-doesnt-give-fba-sellers-a-sales-tax-obligation.html#:~:text=limited%20to%20the%20storage%20of,pay%20Pennsylvania%20personal%20income%20tax. Wisconsin - www.avalara.com/taxrates/en/state-rates/wisconsin/wisconsin-sales-tax-guide.html#:~:text=Fulfillment%20by%20Amazon%20(FBA),-If%20you're&text=If%20you%20sell%20taxable%20goods,with%20a%20trusted%20tax%20advisor. You only need to register in states you have nexus in. More information about nexus in our free sales tax masterclass - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax and our 10 Steps PDF is kept up to date.

[@yogiviben8555]

I love your videos. Thank you! Could you please do a video on sales tax for digital products? What states? How to determine nexus? And any dollar thresholds? Wishing you happy holidays and the best 2022!

[@LedgerGurus]

Sure! We'll put that on our list for sure! What type of digital products are you wanting more information on?

[@yogiviben8555]

@@LedgerGurus wow, thank you again!!! I am looking into downloadable art prints, ebooks, and e-workbooks. Is there any differences selling them on marketplace facilitator platforms (Amazon, EBay and Etsy) vs. selling them on your own through gumroad, koji or Facebook marketplace? How about if you sell those downloadable as hard copy or paperback through marketplace facilitator like Amazon, EBay or Etsy integration w/printful or Amazon Merch? Can you really not worry about the sales tax as long as your personal nexus is only in a State like CA? And could you also add a segment on any sales tax responsibilities for selling affiliate marketing products? Or maybe only income tax applies there because a person is only making commission? How about if you are the person selling the ebook through affiliates? Or Hard cover/paperback through affiliates? I asked a lot but I am appreciative for your guidance on any of it and especially as related to the original question you asked for downloadable art prints, ebooks and workbooks. Thank you again, God Bless. Happy Holidays 🎄🎅🤶 and Happy 2022! 🎆

[@LedgerGurus]

@@yogiviben8555 Thank you so much for all these great content ideas!!! We will for sure do one and address these issues!

[@LedgerGurus]

@@yogiviben8555 And hope you have a great Christmas and happy new year as well!

[@valentynaponomarenko9039]

Hi, the menu changed a little and there is no more Inventory Event report or any other reports you recommend in this video. Can you please let us know which new inventory reports to use to determine nexus for quarterly filing now?

[@LedgerGurus]

Try watching this: kzbin.info/www/bejne/fmOUqJmer7t2haM

[@AlinaCalifornia]

Super-super useful info! Thanks for the explanation, you're doing it so good! 🌷🌷🌷

[@TechnobunnY]

Hi, Thanks for the video. I have FBA model so my inventory is stored in a state but my threshold value is not exceeding so do I need to register for sales tax in a state where i have physical inventory irrespective of value ? Please help

[@LedgerGurus]

It depends on the state. Some states consider FBA to create physical presence and some don't. You'll have to research to see which one applies to the state where your inventory is stored.

[@emdeevlogs7880]

Could you please do a video about taxes for Amazon FBM (Fulfilled by Merchant)? I believe the content is only for FBA, but what about new small retailers who fulfill their own orders??

[@LedgerGurus]

Sales tax doesn't really change if it's FBA or FBM. Amazon is still responsible for collecting and remitting sales tax in every state that has state sales tax laws. You're responsible for getting registered in states where you have physical presence or economic nexus and then filing $0 returns in those states. You do not have to collect and remit sales tax in states where Amazon is collecting and remitting on your behalf. for more information about this, check out our sales tax masterclass - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax

[@johntushabe-winnerscommuni8780]

Hello, thank you so much. Quick question, I believe you mentioned that Amzn doesn't collect B&O tax for Washington. Was that for Washington state or Washington DC?

[@LedgerGurus]

Hi! I meant Washington state.

[@incomemoneyshorts]

please make a video for new york please

[@LedgerGurus]

We will make one specifically for New York next month! Thank you for the suggestion!

[@parth8798]

Totally new to Amazon selling and taxes in general but can you explain what you mean by "I dont own you anything" since amazon is taking care of the taxes? Does this mean when buying products to sell on Amazon we do not need to include the taxes to our total COG's since we will receive it back from the government?

[@LedgerGurus]

No. That means that Amazon will be collecting and remitting sales tax for you in most states because of marketplace facilitator laws. Watch this free masterclass to learn more - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax

[@scottfoco5813]

Great Job. I have an Individual Sellers Central account and not the professional. The Individual account does not show any sales tax reports or tax dropdown menus. Without upgrading to the professional, do you know how I get that information?

[@LedgerGurus]

Can you download orders report or sales report?

[@hardwaygaming8066]

Please help i need help on registering sales tax permit on many states.

[@LedgerGurus]

We’d love to help you! Please reach out to us here: ledgergurus.com/contact-us/

[@almeqdadtannan2942]

Thank you so much for this info If I buy merchandise and use my resale permit then I expect the goods to overseas what should I do for this situation?

[@LedgerGurus]

Hi! I want to clarify, you buy products from overseas and resale them on Amazon?

[@dutterR]

Great video. I was wondering how to Calculate Sales Tax for each state without Taxjar or a software? (Manually)?

[@LedgerGurus]

Which state are you thinking? Happy to give you more guidance :)

[@FL1p008]

So I live in California , since Amazon collects sales tax for me after a sale I don’t need to report or remit sales tax anymore right ? Love the content ! Another rookie question Iam new to Amazon I’ve made less than $2k year to date in sales and about less then 50units sold YTD like less than 200 transaction . Am I required to report that in taxes even though I didn’t reach the 1099k threshold requirement ?

[@LedgerGurus]

kzbin.info/www/bejne/eJ3bmJaNrbWaqpo you might find this video helpful in reporting California sales tax for amazon sellers! With 1099k, the threshold is different than economic nexus (200 transactions and $100,000 revenue in general), Amazon will issue you a 1099 to pay income tax on by January 31, 2023 if you are required. It’ll be in your tax document library in Amazon seller central.

[@roscoc4480]

If I am an Amazon only seller with an LLC incorporated in Delaware and I used Amazon prep centers in other states, would I be classed as having physical nexus in those states and therefore should file an information only return to those states?

[@LedgerGurus]

Not every state considers having FBA inventory as their state as nexus-creating. You'll need to check on the rules for each state where your inventory is being held. If yes, then yes, you will need to file $0 returns in those states after you've registered for sales tax permits there.

[@roscoc4480]

@@LedgerGurus Thank you Kexin for answering my question, much appreciated.

[@BG-gn1pg]

Hello, Just double checking I understood correctly, after we download the combined report, we would filter it by our home state, and add the total orders ship to our state and then this is what we would report to our home state . Correct? Thanks

[@LedgerGurus]

Yes you are absolutely correct!

[@risingkk]

Very informative

[@jaoproduction1]

Hello, Im trying to understand the process of sales tax and could use your input. I have read some states consider inventory through a marketplace (amazon) doesn't consider that as physical nexus? And you would not have to register for sales tax in that state, Does that sound correct? If so, do you know what states you might not need to register for sales tax because physical nexus( inventory) doesn't apply?

[@LedgerGurus]

We’ve done our research and contacted all the states regarding whether FBA creates nexus and thus requires registration or not and about half of the states say yes and file $0 returns (report the sale, take the same amount as deduction), and the other half say no.

[@M0h5iin]

My LLC is in Missouri how can I collect the reports and calculate sales tax and submit it i’m Non resident owner of the company

[@LedgerGurus]

Were you collecting in MO prior to January 1, 2023?

[@M0h5iin]

@@LedgerGurusyes

[@LedgerGurus]

@@M0h5iin I would download the combined report, filter ship to state by Missouri, get rid of duplicated transactions and then go from there.

[@najmulhassan4286]

My company registered in Wyoming state also have a resale certificate. Does i need to file sales tax . I'm amazon seller fba wholesale

[@LedgerGurus]

Yes since your company is registered there, I would file sales tax return, but take the deduction as the same amount as your gross sales so you don’t have any taxable sales and have $0 tax payable to the state since Amazon is already collecting and remitting for you.

[@heidytl6114]

Thank you so much, this information is very helpful. I just found out that I need to register in Mo because amazon doesn't collect sales taxes there, I am from New jersey.i haven't collet taxes in Mo, I have been selling for 1 year and i don't know what to do, register now or wait until January that Amazon start collecting for me. I would like to talk to you if this is possible. Please advise.

[@LedgerGurus]

Hi Heidy, I’d love to chat with you. Please reach out to us here ledgergurus.com/contact-us/

[@usmanfarooqofficial1178]

i am non USA citizen can you explain me is it amazon pay sale tax to all states on behalf of amazon FBA sellers or not ?

[@LedgerGurus]

Amazon collects and remits sales tax for all sellers in the US

[@usmanfarooqofficial1178]

@@LedgerGurus So as a private seller on amazon we dont need to file sale tax on monthly or quarterly basis to tax department am i think right ?

[@cjswanberg6208]

How does the inventory work if you have inventory one month but sell through all your inventory for the next month? I imagine it is different from state to state, but could you do a video more to explain any tips or suggestions on this?

[@LedgerGurus]

Hi! Thank you so much for your question. There is no threshold for physical presence, once you have inventory you have physical presence in that state. If you are certain Amazon won't store your inventory in that state again, then you know you don't have nexus.

[@cjswanberg6208]

@@LedgerGurus Thanks!

[@IfatGlassman]

Can you set it up to have Amazon collect tax at your specified rate from Missouri, and then remit it manually?

[@IfatGlassman]

I read online that registering/ paying in Missouri is only required if you have a physical or economic nexus (over $100,000). Is that correct?

[@LedgerGurus]

@@IfatGlassman Missouri’s economic nexus doesn’t go in effect until January 2023, so right now you only need to register and remit in MO if you have physical nexus there. Starting 2023 amazon will start collecting and remitting in MO as well.

[@kashifabbasi8904]

Hi, Thanks for your effort to educate us. I have a question regarding sale tax. I have some sale on amazon and want to submit my sale tax return. I am confuse. My llc is registered in Florida. I sell only on amazon. So in last quarter i have sales around $3000 in total. Sales spread over different states which includes florida state $25. I have sale tax permit of florida only and liable to file sale tax return as well. As you know amazon itself collect and remit sale tax to the state still we need to submit return. Can you please guide me which sale amount should i report to florida state. Should i go with $25 sales belongs to florida or should i put $3000 whole sale amount of business. Your response will be highly appriciated. Thanks

[@LedgerGurus]

I would only report $25 and make sure you also take $25 as deduction/exemption since Amazon already remitted for you so you end up with $0 liability.

[@walkeradiaz7871]

I only sell on Amazon, how do I calculate California taxes? should I declare 0 if I am not the one collecting them? How can I see the amounts in Seller Central if I have to declare?

[@LedgerGurus]

You will need to download the combined report from Amazon, filter by ship to state to California, then use the selling price exclusive of tax as your gross sales, claim the same as deductions (under “market place facilitated sales) then you will get to $0. If you follow “the tax girl” on TikTok we just did a video to explain the process.

[@quranlistencollectrewards2492]

Hello, to start collect sales tax in shopify i need sales tax permit in state where located my warehouse and company? What documents i need to get sales tax permit? If my company will be in florida i required fill ssn number? Or only with EIN possible get permit sales tax in florida ? And who will chose will i return sales taxes quarterly or monthly me or revenue department? And then when i started ship other states i will need sales tax permit for those states where i did 200 sales? But first i need permit only in state where my company is located?

[@LedgerGurus]

Hi! Yes I would register first in the states that you are located in. You will need your FEIN, SSN, business address, NAICS code, etc to apply online for the license. Then you can put the license number as your tax ID on Shopify. Every state you register you will receive a state specific tax ID. If you have more questions, feel free to schedule a consulting call with us! calendly.com/ledgergurus-sales-tax

[@menya00045]

I don't live in the US and don't have a business there. how do I solve this from Europe where I live? I know that I don't have to pay income tax in the US, only sales tax. is there a company that can do this for me so that nothing goes wrong.? I'm so confused about this. :D

[@LedgerGurus]

Are you wanting to sell on Amazon US from Europe?

[@Varcuri9898]

Bad audio - too much echo to understand fully

[@LedgerGurus]

Sorry about that!

[@AryanAli0007]

How to contact u guys?

[@LedgerGurus]

You can contact us through our website: www.ledgergurus.com