Texas is starting to recover sales tax from Amazon sellers. Where to go for the new year?
Amazon sellers have been most concerned about tax, after all, they really didn't pay the taxes and felt guilty,which day is required to pay the tax is beyond dispute and is irrefutable facts. Just over the past weekend, Amazon has a new dynamic in the circle, Amazon US station tax alarm rang again, the seller should pay the tax or just give up the platform?
First,the United States tax outbreak
1. Texas does tax recovery on Saturday, we saw Amazon exchange group sellers in discussing the tax matters of the
United States, Texas try to recover the tax at one seller who sells at Amazon US station.
The seller is registered with the United States company on Amazon site, tax payment is not from the Amazon sore opne
date, but from the beginning of the company registration.
Finally,the sellers found the accounting to help settled this issue in the United States, but they still need to pay
the normal tax point according to the sales.
Canthe seller of Chinese registered company survive from this?
According to the information we've got, the tax payment is not only applicable for American registered company, as
long as the seller to apply for tax number, the United States tax bureau can check your historical sales and then
requires you to pay the taxes.
If you are not a U.S company, you may only need to pay taxes from store open date to present, rather than paying taxes
from the company registered date to the store open date.
To put it bluntly, they don't care tax evasion occured in China but if you have sales tax evasion during Amazon sales,
they have the right to recover.
2. Massachusetts is about to ask sellers to pay a sales tax.
Amazon informed market sellers that it had agreed to hand over important merchant information, along with their
federal tax number and estimated value of Amazon warehouse inventory stored in the state to Massachusetts last week,it
would help Massachusetts government to determine which Amazon sellers might be owed their unpaid sales tax.
Second, new tax developments in the United States
1.Amazon announced at the sellers forum that it would begin imposing sales taxes on its third-party sellers in
Washington state in 2018 at the end of last year.
2. There have been sellers reaction that Amazon has on behalf of sellers began to collect fees from buyers as sales
tax,adding the tax fees in the order, but the money will not enter the seller's account, Amazon directly to the
relevant tax authorities starting this year.
3. The first month of 2018 is about to pass, and Trump has again tweeted about Amazon within such a short month,
arguing that E-commerce companies should start paying internet sales taxes.
4. Amazon launched a market platform tax service to automatically calculate and collect sales taxes for third-party
businesses sold to Washington state on January 1st , where its headquarters are located. Mr trump's internet tax may
be modelled on Washington state's new law, which requires third-party E-commerce on all market platforms to pay the
state's sales tax.
5. If the seller is shipping through FBA and the state where the warehouse is located has a sales tax, the seller may
soon have to charge a state sales tax as well. FBA sellers are advised to hire tax consultants for tax consultation
and understand FBA related tax liability and other potential liabilities.
Third,What can the sellers do in the face of the United States sales tax ?
1. choose whether or not Amazon is needed for the tax
(1) many Amazon sellers have never set up the US state tax option on Amazon, they think Amazon will automatically deal
with all sales tax issues in platform sales, However, Amazon does not replace the tax background by default.
(2) Amazon can collect consumer sales tax on behalf of the seller and get a certain commission, but this requires the
seller does settings in the Amazon background,indicate in which state to let Amazon get the tax and remittance to
which state of the tax authorities.
(3) although the seller can choose not to impose state sales tax on consumers, but their tax liability is not exempt.
(4)sellers can ask Amazon to collect specific states' sales tax. But when sellers create new product listing, Amazon
defaults to have no tax label per SKU.
2. set up tax account in the background
open settings > tax settings, specify Amazon to collect which state's tax, and in the " use default product tax code"
set " a _ gen _ tax". Amazon generally defaults to a _ gen _ notax and does not collect taxes on its behalf.