These states are taxing Amazon sellers! Starting this month

The tax collection this time is quite large, directly involving 7 new states, namely

How are taxes collected in these states? What should sellers pay attention to? Let me explain in detail.

Everyone should be familiar with the sales and use tax. As one of the few taxes on US sites, although sales tax is a fee levied on consumers, sellers actually bear part (or even all) of it.

In fact, sales tax is completely unavoidable in offline product sales. Amazon now frequently updates and requires new states to collect sales tax because the laws of various states have not yet perfected the regulations on e-commerce taxation.

In order to include e-commerce in the scope of taxation, state governments generally formulate new tax laws based on the following three situations.

The situation we may be involved in is the second type of remote sales connection, that is, as long as the cumulative sales in the state that levies e-commerce sales tax exceeds a certain value, sales tax must be paid.

Previously, not many states had updated their tax laws to require Amazon sellers to collect taxes, and sellers may have often ignored the existence of this tax.

However, as new states continue to join the tax collection ranks, there are now 23 states that are collecting sales tax from Amazon sellers. Below is a detailed form for everyone.

The tax collection method is automatic. When Amazon detects that your sales in a taxable state have reached the threshold of that state, it will automatically calculate the tax and collect it and remit it to the state government.

When you see the taxation mode as "Mall Service Provider" and the party responsible for taxation is "Amazon" in the order details or transaction details, it means that sales tax has been automatically withheld by Amazon for this order.

The calculation and collection of taxes is automatically and compulsorily performed by Amazon, which brings up a problem. If the seller already has other links in the taxable state and has paid sales tax in this state through a tax consultant, Amazon's mandatory tax deduction operation will cause the seller to pay taxes again.

In this case, sellers cannot cancel Amazon's mandatory automatic tax withholding and need to coordinate with relevant departments of the local state government to refund the duplicated taxes.

To sum up, this sales tax is inevitable. The calculation and withholding are done automatically by Amazon, and Amazon cannot refuse to sell to consumers in a certain state due to tax issues.

Moreover, the collection of sales tax is an irreversible trend. According to statements from relevant US government agencies, it is expected that all states in the US will establish comprehensive e-commerce sales tax laws around 2020.

We sellers should also make plans early and use enough profit margins to cope with the cost increase. I have prepared a collection of high-profit operation skills for everyone. Please scan the QR code below to get it from me~

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

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