Too many sellers focus on top line sales numbers rather than bottom line profits.
#AMAZON ISSUES TODAY PRO#
PRO TIP: Each FBA seller should invest in a tax consultation with an online seller tax consultant to understand the responsibilities and potential liabilities of using FBA. If the seller is using Fulfillment by Amazon (FBA) and isn’t proactively collecting state sales tax in all of the tax-collecting states where Amazon has fulfillment centers, it won’t be long before the seller accumulates tax liability from having incurred tax nexus by way of FBA inventory being stored – even briefly – in these states’ fulfillment warehouses. While the seller may offer products that warrant a slightly different tax rate, that level of tweaking can follow later.
Set the “Use default Product Tax Code” setting to “A_GEN_TAX.”Īmazon typically defaults to A_GEN_NOTAX, where no tax is being collected.Designate in which states you want Amazon to collect state sales tax.Immediately upon signing up a new seller account, my advice is to: Set your taxes up right the first go around. Unfortunately, however, Amazon’s default when setting up new listings is to designate each SKU as having a no-tax label, which can overwrite the seller’s general request to collect state sales tax across all of its catalog. While a seller may choose not to collect state sales tax (choosing to absorb that as a cost of doing business), the responsibility of remitting the tax is not optional.Ī seller can designate its account to collect state sales tax in particular states. There are many tax remittance services available for online sellers, but the seller ultimately has the responsibility of paying its taxes.
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