SALES TAX - do i pay or does Amazon pay on my behalf?


#1

Hello Dear Community!
so I sell from NY and charge sales tax to NY state, I see customers paying it, but do I get it transferred to my account and pay it later to IRS quarterly or does AMZN pay it on my behalf directly?
appreciate clarification
Thank you!


#2

Amazon collects the tax and pays it.


#3

If YOU are in NY, and collecting, you must pay yourself. There is a report someplace in reports, where you can find out how much was collected.

We are in OH, that is the only state we have to figure out and pay ourselves.


#4

@sellerlove - fishy_business isn’t completely correct.

Amazon collects and remits taxes on your behalf in certain States. New York is not one of them.
You are still responsible for remitting the taxes.

View this info page about Amazon taxes and consult your local accountant or tax advisor.

https://sellercentral.amazon.com/gp/help/200787220

Amazon currently collects and remits in Alabama (retail sales), Pennsylvania (retail sales), Connecticut, Iowa, Minnesota, New Jersey, Oklahoma, and Washington.

If you use FBA - you may have nexus in other states that require you to pay. This is a gray area for pretty much everyone so that’s why it’s best to speak with a qualified professional about this. You’re going to get 1000 different opinions in the forums from people that won’t be affected if you listen to them one way or another.


#5

I don’t know about New York, but in Florida, we pay our sales tax for sales delivered to Florida recipients.

If you download your Sales Tax Report, you can identify the taxes you are responsible for paying. If the “Tax_Collection_Model” says “MarketplaceFacilitator”, Amazon remits the taxes. If it says “Standard”, you are responsible for filing and paying those taxes to your state.

Reports -> Tax Document Library -> Sales Tax Reports
https://sellercentral.amazon.com/gp/tax/tax-library.html/ref=xx_taxlib_dnav_sitereport


#6

AZ collects, they include the amount in your payment, you file with the state when they tell you to and then you pay NY.


#7

Let me help

https://sellercentral.amazon.com/gp/help/help.html/?itemID=G7VYHGJ8ZT2M58CP

NY is not one of them, so its your responsibility. Although for all the states Amazon do, you will need to keep your own record for your own tax purposes.


#8

We are also a NY Corp and we collect NYS Sales Tax. Amazon collects the tax from the customer for us and sends us the funds when we are paid bi-weekly. We then have to report and pay the Sales Tax to the New York State Department of Taxation and finance when we file our ST-100 (along with other sales tax we have collected from sales in our B&M location and our web store).
Keep in mind that the sales tax rate in New York is based on the local sales tax rate in the BUYER’S locality (either county, city or village sales tax rate). When filing the ST-100 you will need to allocate sales and tax collected to each locality. $100 in sales to Erie County means we have collected $8.75 sales tax. And $100 in sales to Rochester means we have collected $8.00 in sales tax.
== Scott


#9

For sales taxes charged to your own state or where you are or your business is located/registered, Amazon will transfer these sales taxes to your account and you are responsible for filing or paying to NY Dept of Revenue (not IRS).

For sales taxes charged to other states, Amazon will not transfer these to your account and Amazon will take care of filing and paying these sales taxes to other states UNLESS you have presence in these states.


#10

No No No … Wrong Wrong Wrong

Amazon does collect and pay sales tax for a few States… New York is NOT one of them.
You must collect, pay, and file sales taxes for New York State if you are a Seller in New York State.


#11

thank you!!!


#12

Thank you!!!


#13

:man_facepalming::-1:


#14

Thank you!


#15

wow, looking through the emojis for that last reply, and came across this one. Why it is even here? lol

:fu:


#16

hahaha! :rofl:


#17
  1. You pay. NY is not on board with the marketplace facilitator program.

  2. You do not pay sales tax to the IRS.


#18

I was not aware that Amazon handled other states differently.
They told me they collected and paid the sales taxes and I assumed it meant for everyone.
Apparently they were only referring to my account.


#19

where are you located?


#20

You did not state if you have a NY state license to collect sales tax or not. If you do, is it on file with Amazon? If so, Amazon will collect the tax and disburse it to YOU for payment into your state account. :train2: