Is it true that we have to charge sales tax for all 50 states?


#41

This is not true! Please do not post inaccurate information. There are states that have no sales tax, and there many states that have not placed online tax legislation in place.


#42

Embellish_em_LLC1d
Nope unless you are registered on every state. With the last Supreme Court decision, it will be soon when all states will do what WA, OR, PA and SD do now.

Oregon doesn’t have a sales tax.


#43

I wonder how that is supposed to work in practice. Does it mean if you have a warehouse or if you use a warehouse?

Presumably they mean use a warehouse since they are going after FBA sellers. However, that raises other issues.

I use 2 warehouses (in different states) that recieve my goods before shipping them to Amazon. So would I be liable for sales tax twice? Once in the state of the prep warehouse and once in the state of the FBA warehouse.

I haven’t see any clear answer on that yet.


#44

That warehouse logic has been thrown out the window now. Per SC if a state wants you to, you have to pay sales tax to them if you are selling in their state. While I don’t like it, it makes things simpler for FBA seller. Only problem now is cost of filing and states that have multiple rates in multiple jurisdictions.


#45

Only if you are a Washington seller. You don’t need to file with the DOR as a remote seller for WA if you are not a resident.


#46

Every state will have there own rules. Here in GA each COUNTY (and we have over 100) has their own sales tax anywhere from 4 to 9 % But so far they have not passed a law for online sales. There will be big bucks for the person who comes up with a program to sort this all out for us!


#47

This is the threshold applied to issuance of Form 1099K. COMPLETELY irrelevant.


#48

No, and the ones that currently require it Amazon does it for us (let’s hope it stays that way)


#49

In my opinion and experience so far (only selling a few months) it seems like 200 sales per year is very easily possible if you sell low cost high volume items.


#50

You are right, and Florida, Texas and another mid west state do not have sale tax. And in my case I have my business in PA, and any PA resident who buy my products will be charged 6% tax, but Amazon do that. Only apply for me to charge
if I am seller fulfillment, but I am not, my business is FBA, so Amazon collect the taxes for my buyers who reside in my state, because the require so by law.


#51

Florida and Texas certainly do have sales tax. I live in TX and I have to pay sales tax for my business or the state gov’ment sends its goons after me.


#52

Not according to Amazon. If this was the case they would collect in all 45 states required for our orders. Their stance has always been they are a venue that allows businesses (us) to sell. It is your responsibility to know and implement any tax that is relevant and they’ll even charge you an extra 2.9% to do so.

If you are super small potatoes under 200 sales 100k per state and merchant fulfilling there is no obligation currently. FBA Sellers etc. talk to a tax professional or read every states tax law :frowning:.

I personally am automating in 2019 collection and remittance. What we all really should be doing is writing our congress people to say “hey get the whole pie like Washington and Pennsylvania not just a sliver” as under new legislation Chinese sellers can’t be held accountable and they make up more than 50% of all Amazon purchases.

Just my 2 cents, stick your heads in the sand and say to yourself “the Supreme Court of doesn’t impact me” if you want. Amazon already collects for all the sales in all the jurisdictions it is legally responsible in.


#53

Not only do u not have to file, u will also be on the hook for the B&O for the WA sales


#54

Directly from Washington’s DOR site. If you have already registered and were collecting sales tax it is slightly different. You can further information directly on the Department of Revenue site. If you are a small seller you shouldn’t have to worry. Only larger sellers should care. Obviously you should contact an accountant.

When does sales tax collection start for remote sellers and facilitators who meet the $10,000 threshold?

If a remote seller or facilitator meets the $10,000 threshold in 2017, they must begin collecting sales tax on January 1, 2018. If they meet the threshold for the first time in 2018, they must begin collecting on the first day of the month at least 30 days after the date they met the threshold. For example, if they meet the threshold on February 15, 2018, they must begin collecting sales tax on April 1, 2018.

If a remote seller exceeds the $10,000 threshold, are they required to pay B&O?

Not necessarily. The economic nexus threshold for reporting B&O and the $10,000 threshold triggering the election are two different standards. The economic nexus threshold is more than $285,000 of gross receipts in the current (2018) or prior calendar ($267,000 for 2017 and prior) year on sales sourced or attributed to Washington or 25 percent of total receipts.


#56

So there is no one clear answer and neither of us are right or wrong since we are speaking from our own perspective. As you say yourself and as many are saying nowadays on these forum, don’t go by anything that is said on this forum if u run serious volume. For hobby sellers or small selllers selling only on amazon, there is really not much to worry about. But it is time to stop ignoring all thjs and hire professionals if ur business is not just limited to amazon and u r doing volume. Post 2018, the states will come hard at folks who did not pay attention. There is a good chance of an amnesty program as well but who wud want to bet on it!

The saddest part of thjs is that Chinese sellers will have a heyday at the losses of hard working American businesses! Who is going to tell all these states how much volume the Chinese sellers generate on amazon and they are never going to net it without a marketplace facilitator act.


#57

Florida has no income tax, but definitely has a sales tax - actually several hundred sales taxes. The base rate is 6%, there are various local option taxes, special taxing districts and so forth. The problem with compliance is that Florida says the sales tax due is determined by the sales tax at the DESTINATION, not the origin. Some of these tax districts are part of a zip code, or overlap zip codes, or vary as to whether or not the destination is county or city, so the house right next door might have a different sales tax than yours. Unless you have granularity right down to the street address, it will probably be wrong.

Retailers simply charge the 6% base rate plus whatever the local surtax (if any) is. So far, the state hasn’t been asking for zip codes and sending people nastygrams that say you bought a candy bar in an adjacent county where the sales tax surcharge is .5% lower and you ate it at home where the tax is higher, please remit the difference at once or else.

Here’s a possible approach to this morass. Register with EVERYONE, send them either zero amount tax returns, or if tax is due, send them three cents MORE than the amount. They like paper, bury them in paper. Make every correspondence, every remittance generate at least three or four “downstream” documents, a letter, a three cent refund check, some arcane question that will take them three weeks of legal research to answer. Even if the answer is wrong, that’s fine, we want to keep them SO busy and SO overwhelmed by garbage that they don’t have time to enforce anything and eventually they will realize (or their state accounting office) will tell them that this is costing the state FAR more in time, resources and money than the multiple random pittances they are actually collecting - and like parking meters, they’ll decide it just isn’t worth it to them.

As an example of this nonsense, some years ago I was involved in a construction project which was eligible for a state rebate. I sent them three copies of the bills, about 400 pages each, and waited and waited and waited. Six months later I get a letter telling me they had disallowed $1.06 (yes, one dollar and six cents) because one of the guys bought a soda at Home Depot. The total refund was almost $7,000, and they probably had a well-paid state auditor (who we pay) working on that file for weeks and weeks to tell me they were denying a dollar and six cents.

I used to teach accounting - this is called “the principal of materiality”. What do you tell your accountant who says “I worked for 23 hours but I found the three cents we were off.”? How about “You’re fired”. What does 23 hours of accounting time cost, versus what it costs to be off by three cents?

Lets use the state’s anal retentiveness and excruciating attention to trivia against them - bury 'em in paper. Make them dread coming to work. Make them fear the postal service. Keep them so busy they won’t have time to make trouble for us.

Best Regards,

Mike


#58

Florida does have sales tax at 6% but does not have state income tax for individuals only.


#59

If this happens, let me know if i’m incorrect but i will be paying over $4000 per year to file for sales tax through tax jar every year ??


#60

So are you saying that if you have stuff in a warehouse they won’t charge sales tax if no sale is made, ie it’s just a storage facility and not a fulfilment center? Have I understood that correctly?


#61

Amazon charges the sales tax and files it on transactions that require it.