It is remaining four days from 2018, Amazon sellers have received mail one after another: From January 1, 2018, the U.S. station will begin to collect sales tax, of which Washington State will take the lead in implementation.
Third-party sellers pay sales tax is an inevitable trend. Former Amazon Services James Thomson said: other states are likely to follow. "Amazon now agrees to levy and deduct sales tax to Washington State, and it is easier for the other states to charge sales tax on marketing."
In fact, e-commerce platform has been pulled with the government more than a year, in August this year, Trump is still on Twitter insist Amazon need to pay sales tax. Electricity supplier sellers without physical stores used not to pay sales tax. But Amazon has not only FBA but also many offline business, Amazon has pay tax for their own products sale, but missed third-party sellers.
As ecommerce sales increase about 15% a year, and 80% of Amazon's revenues comes from third-party sellers, the state governments can not afford it. In many U.S. states, sales tax accounts for one-third of the government revenue, with a greater percentage of some states, such as Texas and Florida.
You have to pay the tax sale which you didn't pay before?
Some big Amazon sellers have received summons from some states who ask them to collect their unpaid taxes. August 2, 13 states in United States announced a sales tax amnesty plan launched for the electricity supplier. Valid time is from August 17 to October 17, any tax you have earned will be exempt if you sign up with the MTC and make sure you pay the taxes later.
According to media reports, the seller who registered the final amnesty plan is only 850. If you did not submit this amnesty plan, you can only bless it.
Do not pay wronged money？ You have to understand sales tax knowledge.
The first thing to figure out is whether you need to pay a tax. first, whether there is a nexus between the seller and the state where the consumer is located (for example, you have to pay sales tax if you have physical facilities, employees, or inventory in a region). If you can ship completely from other countries you don't need to pay tax, but the state government's brain hole has been played to the extreme:
Click-through Nexus, you hire a affiliate site in a state or Marketing agencies to help you attract traffic, it constitutes Nexus.
Virtual and Economic Nexus, without any physical presence, as long as you sell more than $ 500,000 to the state, you become the so-called "Economic Nexus" and must meet your sales tax obligations.
Dropship Nexus, you buy from wholesalers and have them delivered on their own also make up the Nexus.
Second, whether the products being sold are taxable, most products are taxable, with some exceptions, for example in Pennsylvania where clothing is not taxable.
Trouble is: an Amazon FBA seller basically have to pay taxes, but because the FBA will automatically sub-positions, the seller may not know which warehouse their products are placed, so they may don't know if they need to pay tax or how much they need to pay.
Most states in the United States enforce sales taxes based on the location of consumers. For example, if the consumer is located in Connecticut, then enforced its sale tax. Other states, such as California and Texas, enforce sales tax rates based on the shipments place.
It is important to find out:
Who pays tax: Consumers, whether buying goods or services;
Who collect the tax: State and local governments across the United States (several states do not charge).
Note that the U.S. federal government does not charge sales tax.
How to collect: Businesses collect fees for state and local governments when they sell goods and services; then pay the fee to the government on a monthly, quarterly, six-month or one-year basis.
Tax Rates is usually between 5.4-12%, while several states' sales tax is 0% (example: OR, DE, NH, MT) Amazon has FBA warehouses in all 24 U.S. states, with the exception of NH and DE, which require collection of sales tax for up to 22 states !
How do the sellers turn over the sales tax?
1. Amazon could paid it for you, but Amazon will charge 2.9% of tax as a fee. To turn this feature on, simply go to Seller Centrall → Settings → Tax Settings and fill in the tax details.
2. Non-FBA sellers, such as overseas warehouses, can also use sales tax solutions such as Taxify, TaxJar, Avalara, and others that automatically collect and report sales tax to you.
Note: Fill Form SS-4 first and apply to the federal government for company tax number EIN. With EIN, register should apply for Sales Tax Certificates in each Nexus state. Cross-border electricity suppliers must first register, otherwise, to collect sale tax without registration will result in serious consequence, may be suspected of Tax Fraud.