USA sales tax settings for UK company


#1

Hi, we’re a UK company starting our amz.com journey, and I’m struggling to understand Tax settings. We’ll be fulfilling orders from the UK. Our category of goods is not in that list on the PTC pages and it seems AMZ are saying the default is ‘gen_no_tax’ which sort of sounds too good too be true. I understand MTC (seems AMZ does everything for those states that MTC works) however how do I tell AMZ that in my Tax Settings? When I do MTC only it still asks me for Tax Numbers/References state by state. Confused.


#2

If you are fulfilling from UK and your items have no special duties requirement (e.g. perfume or jewelry, for example), as long as it is less than $800 in value, there will not be any sales taxes that you need to deal with. Amazon, however, may still charge sales taxes for certain states, but you do not need to care about those. Amazon will charge the customer (you will be paid nothing more) and will pay the state taxation authority.

If you change to FBA in the future, then you will have additional concerns.

Dave