Seller Fee Taxability on Amazon.com


#21

Just making a guess here, as there is not much info, but it sounds as if the items under “Selling on Amazon fees” (such as referral fee, variable closing, etc.) would apply to both FBA and FBM; items under “FBA Service fees” obviously only for FBA.

Note that this is a SALES tax, not an income tax, so living in a state without an income tax is not a guarantee that you won’t be affected for taxes based on your business location. So far, I’ve seen nothing indicating what states would be affected, nor how to figure it out.


#22

More info on the CA 180 degree change?? I missed it :slight_smile:


#23

As I see it, it is Amazon that is being taxed as the provider of the service. Taxing sellers is simply passing that obligation and its cost to us.

Or am I missing something.


#25

They are talking about sales tax. Such as when you pay a plumber for services, the plumber charges you sales tax. That is the tax they are talking about charging us.


#27

List of states would be great. Maybe its finally time to move back to FL :). No state income tax and no inventory tax which I currently pay in my new state.


#28

My guess is they aren’t anxious to share a list of states this will apply to because sellers will start cancelling FBA shipments going to fulfillment centers in those states if they are paying Amazon to prep or label their items or will stop having Amazon do their labeling and prep if they are getting taxed on top of the fees already being charged for these services.


#30

It would be nice if they would maybe let us know which states this is going to be so I can decide if I want to shut down my account or not.


#32

AB147 passed in California which will require Amazon to collect and remit sales tax for 3p sales.
(Responding to daxej’s question)


#33

rethought


#34

Not only that with the ever increasing shipping rates its milking the Amazon experience dry…


#35

Do you know amazon paid $0 corporate tax last year? If they are going to be taxed more this year then they will pass that to buyers and sellers.


#36

So what has been the net effect for sellers on CA site?


#37

We were scammed out of a couple big items in the past couple years. We used to have high numbers, now the market place is filled with people who sell everything from lawnmower parts to boxed rice meals. Its ridiculous.


#39

Tax is for selling tangible products.If we can see it, touch it, and hold in hands, then tax sale. However, the Amazon Fees are not tangible products. I sincerely believe it’s against the government’s own rule of taxablility.

Attorneys who provide consultations online do NOT pay tax. Computer programmers who provide website service do NOT pay tax. Why does Amazon who provide us the website to sell charge us tax?

I think we should find sellers who are attorneys speak for us. Probably we are charged because we do not understand the law, so whatever they say would become the law just FOR US.


#40

Seems like a sales tax? That’s weird because a business is sales-tax exempt from such things, things that are used in the course of business. At least in my state.


#41

I just forwarded the e-mail to my accountant. I have no idea what I am supposed to do about this.


#42

hmm… its charged based on the warehouse location. each province has its own tax rate, and then add the federal tax rate as well, you get charged about 10% on fba fees… i guess eventually it will be passed on to consumers.


#44

That all depends on the state. Plenty of states charge a sales (or use) tax on services. Including in some cases, things like web designers.


#45

Again, may vary by state, but in every state I’ve done business, you didn’t pay sales tax on things bought for resale. Businesses still pay sales tax on items bought for other reasons, including office furniture, cleaning services, etc.


#46

Seems to me the “international” sellers on .com are getting another leg up on US based sellers. Why shouldn’t they have to collect and remit sales tax on their US sales just like US based sellers, and pay taxes on US based services (e.g. fees, services) just like this is hitting US sellers. Their inventory comes into our country, bought by our citizens. And who pays the tax? No one. That’s why the states are going after US. Why shouldn’t US based sellers start creating their own international company to avoid these taxes too?