How FBA Affects Sales Tax Compliance

Amazon warehouse locations October 2017
While you’re working out all of the details of how to play the FBA game, be sure to keep one of the most often-overlooked implications of becoming FBA: sales tax. Committing to FBA involves a lot of work, so it’s understandable that sales tax can slip through the cracks (especially when Amazon doesn’t tell sellers that there are sales tax implications to using their service).

Read more about FBA and sales tax compliance.

Registering Your Business in Every FBA State

If you read the article about your inventory in FBA warehouses giving you sales tax nexus, then you’re probably thinking ahead about how to register for sales tax licenses in each state.

Here’s a list of the states with FBA warehouses and links to where you can file online or by mail.

How to: File Sales Tax Returns to the States

After determining what states to collect sales tax inregistering your business in those states, and then setting up sales tax collection in Amazon, the last thing to do is to send what you’ve collected through Amazon to the appropriate state(s). Sending (or remitting) what you owe to the state(s) is done by filing sales tax returns (usually online) and including a payment (usually made directly from your bank account).

Read more about filing sales tax returns in FBA states.

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