Seller Fee Taxability on Amazon.com


#1

I just received an email that certain states are taxing FBA and Amazon fees. Does anyone know which states these are? And will you only be charged if you are physically located in that state? Or if the FBA warehouse they use is in that state?

This is the email from Amazon:

We are reaching out regarding the possible tax implications on some seller fees beginning June 1, 2019.

Some states consider specific Selling on Amazon fees such as per item, order, and refund fees as a taxable electronic service. Similarly, some states consider FBA inventory prep fees such as bubble wrap, polybag, taping and labels as taxable. Seller fees is not increasing however; you might see tax applied to some seller fees.

For more information regarding this change, refer to the FAQ below:

  • What fees are taxable?

Selling on Amazon fees (based on your business location):
• Referral Fee
• Subscription Fee
• Variable Closing Fee
• Per-item Fee
• Promotion & Merchandising Fee
• Refund commission Fee
• Checkout by Amazon
• Sales Tax Collection Fee

FBA service fees (based on order fulfillment center):
• Labeling Fee
• Polybagging Fee
• Bubble wrap Fee
• Taping Fee
• Opaque Bagging Fee
• Repackaging Fee


Sales Tax being charged on Amazon Services
#2

Duplicate thread.


#3

sooooooo useful your information. Do you have a link for the original thread please? :roll_eyes:


#4

Looks like it evaporated for now. We made one comment in it, and the thread is no longer in our activity. At last glance it was going down a political rat hole.

https://sellercentral.amazon.com/forums/t/more-taxes-important-changes-to-seller-fee-taxability-on-amazon-com/451856/


#5

i just want to know (1) what states it applies to, and (2) if it only applies to you if you are located in that state.


#6

They did not provide the states it applies to. I do know MA would be one, we moved our business out of that state 25 years ago for that reason. It does not apply in our state, since we have no sales tax on goods or business services.

FBA services, I would guess will be taxed, if taxed in the state the work is done. We do not have AZ do any of those tasks.

How nice, a “Taping Fee Tax”


#7

I am really confused by this email. Does that mean the buyers are being charged the sales tax on everything now and we are responsible to remit them to the states? Or it this just another fee?


#8

The original thread is gone now so sorry for the dupe but I did not flag so mea culpa. The notice was all the info provided and many sellers are upset at lack of info.
As to the tax issue, it appears that taxes will be taxed on taxes. This is mainly for FBA sellers as FBM sellers have their own hoops for liability which is paying state taxes for those who do not declare on their own taxes purchases made on-line as they are supposed to do.
Some states do not have state income tax so I am thinking of moving to one of those states.


#9

Here’s at least one other one: Seller Fee Taxability on Amazon.com


#10

So the states give Amazon big tax breaks and now we will be charged all of these new taxes? Seems like Amazon isn’t seller friendly only buyer friendly. What happens when there are no more sellers because all of these fees and taxes eat up the profit? Maybe No more FBA so the taxes don’t all apply?


#11

Isn’t this how trickle down works?


#12

[quote=“Puzzles_LTD, post:7, topic:451933, full:true”]
I am really confused by this email. Does that mean the buyers are being charged the sales tax on everything now and we are responsible to remit them to the states? Or it this just another fee?[/quote]

Amazon is being taxed on the revenue for these services. And they are passing those taxes on to us.


#13

This one only seems fitting.

yo-dawg-i-heard-you-like-taxes-so-were-taxing-your-taxes-so-you-can-tax-while-paying-tax


#14

No, the email was about sellers being charged sales tax for services that Amazon renders to the seller. This has nothing to do with the normal sales tax for sales to consumers.

This really is no different than your internet company charging you state sales tax on the service they provide.


#15

I think the original thread was deleted. The link to the petition was removed as well. If anyone is interested in signing the petition that this is the most ridiculous thing that you heard in years, see the screenshot.


#16

HELLOOOOOO - NOT CONSUMER SALES TAX

Amazon will now be taxing is on their FEES depending on state.


#17

I’m no tax expert, but this concept seems wrong to me. We are paying amazon fees. It’s their income. They need to pay tax on it… not us. Please help me wrap my mind around why we should pay. Thanks!


closed #19

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