Done with FBA due to Nexus


#1

So I’ve decided to pull all inventory from Amazon FBA, not due to sales tax nexus but Income Tax nexus concerns. We have the ability to do Seller Fullfilled Prime, so beyond the fact that I need to stock more inventory in our warehouse, it seems to make the most sense to me. We still get the Prime Badge, and we already ship 100+ packages per day.

I don’t mind filing sales tax in all states that require it, but creating income tax nexus in all other states is just a road I don’t want to go down. States are going to go after their sales tax revenue, and then Income Tax revenue is just a step behind it. Our fear is that as soon as you register for sales tax AND have inventory in that state, they are going to want income tax as well.

Good luck to everyone that deals with this, it is a huge headache. I’ve already spent tens of thousands of dollars on tax professions and attorneys figuring it out, and there is just so much uncertainty that it could blow in any direction.


#2

No you have not.


#3

That’s just pure foolishness on your part, if true

palmface


#4

This is a completely unfounded fear.
You can work in one state and live in another. (there are actually many people that do this) (living close to state lines and working in the neighboring state)
You only pay income tax in the state you actually live in and not the state where you worked. (earned the income)

You have spent nothing on this subject or you would know this is a foolish fear.


#5

Nope.

Depends on the state you earn in. Some levy a non-resident income tax. Lots of variations.


#6

Many people who work in Chicago, live in Wisconsin (despite paying income tax in IL), for other tax and cost of living reasons


#7

That’s right. I live in WI and have worked in MN in the past. I’ve had to file in both states, and pay income tax to both states. WI offered a credit for income tax paid to another state, but it didn’t offset all the tax paid to MN. It all depends on the state tax law in play.


#8

I’m waiting for states to create tiered sales tax rates, for those who actually reside in the state and those who do not. It’s a huge money grab opportunity for states to sock it to those that actually have no physical location in their state and steer consumers to purchase from businesses actually located in their state.


#9

I spent $20 plus a few hours setting up Avalara.

I was booted from FBA during their IPI change. It’s impossible for me to ever trust FBA again. But Avalara is still worth it. They know which order ships from which FBA warehouse. And they auto-fill your returns for you.


#10

This is true.

But why register when you don’t have to.

Funky


#11

That information is available under Reports > Fulfillment.

That’s mighty generous of them automatically sending in Sales Tax you don’t owe; for a fee yet. :roll_eyes:

Funky


closed #12

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