What type of "Tax" is this?
What type of "Tax" is this?
5 replies
Seller_olet7eVOHxQZd
Looks like it has a question mark next to it. What does it say?
Seller_zDXVpmGz86diF
At one point the other month, Amazon announced that some Amazon service fees (like FBA fees for picking/packing or whatever) would begin being taxed (state tax?) in certain jurisdictions. But that seems like a high percentage if we’re talking $1.08 tax on $6.38 pick and pack fee.
Unless they’re also going to (GULP) tax basic referral fees, in which case $1.08 on $12.06 ($6.38 + $5.68) is essentially 9%. Does 9% seem like the usual sales tax rate (state, local, city, whatever) for your area (or maybe the area where the order was picked/packed)?
Seller_olet7eVOHxQZd
Here’s the letter from Amazon to sellers:
Dear Seller,
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
The above list is some common seller fees. For a complete list of seller fees, refer to the following Help pages:
Selling on Amazon Fee Schedule: https://sellercentral.amazon.com/gp/help/200336920
FBA features, services, and fees: https://sellercentral.amazon.com/gp/help/G201074400
- How will tax be calculated on my seller fees?
For Fulfillment services, the fulfillment center performing the taxable service will determine the tax rate.
For Selling on Amazon fees, the location of your business in a taxable state will determine the tax rate calculated.
- When does this begin and where can I see any tax collected on my seller fees?
Beginning June 1, 2019, Amazon will start collecting sales tax on taxable seller fees. Tax collected will reflect with the order fee on the transaction details of your Payments Reports. Date range payment reports will continue to reflect the sum of fees per order.
- Can I opt out of using FBA fulfillment services that may be taxable?
FBA services are performed on your items when you elect to purchase these services from Amazon or when the packaging and prep requirements are not met. To manage your FBA settings and minimize FBA service fees by prepping your items before sending to an Amazon fulfillment center, visit Fulfillment by Amazon settings at ( link ).
To learn more about packaging and prep requirements, refer to the Help page available at https://sellercentral.amazon.com/gp/help/200141500.
For more information on Amazon fees, please visit the Selling on Amazon Fee Schedule at https://sellercentral.amazon.com/gp/help/200336920.
Regards,
Amazon Seller Services
What type of "Tax" is this?
What type of "Tax" is this?
What type of "Tax" is this?
5 replies
5 replies
Seller_olet7eVOHxQZd
Looks like it has a question mark next to it. What does it say?
Seller_zDXVpmGz86diF
At one point the other month, Amazon announced that some Amazon service fees (like FBA fees for picking/packing or whatever) would begin being taxed (state tax?) in certain jurisdictions. But that seems like a high percentage if we’re talking $1.08 tax on $6.38 pick and pack fee.
Unless they’re also going to (GULP) tax basic referral fees, in which case $1.08 on $12.06 ($6.38 + $5.68) is essentially 9%. Does 9% seem like the usual sales tax rate (state, local, city, whatever) for your area (or maybe the area where the order was picked/packed)?
Seller_olet7eVOHxQZd
Here’s the letter from Amazon to sellers:
Dear Seller,
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
The above list is some common seller fees. For a complete list of seller fees, refer to the following Help pages:
Selling on Amazon Fee Schedule: https://sellercentral.amazon.com/gp/help/200336920
FBA features, services, and fees: https://sellercentral.amazon.com/gp/help/G201074400
- How will tax be calculated on my seller fees?
For Fulfillment services, the fulfillment center performing the taxable service will determine the tax rate.
For Selling on Amazon fees, the location of your business in a taxable state will determine the tax rate calculated.
- When does this begin and where can I see any tax collected on my seller fees?
Beginning June 1, 2019, Amazon will start collecting sales tax on taxable seller fees. Tax collected will reflect with the order fee on the transaction details of your Payments Reports. Date range payment reports will continue to reflect the sum of fees per order.
- Can I opt out of using FBA fulfillment services that may be taxable?
FBA services are performed on your items when you elect to purchase these services from Amazon or when the packaging and prep requirements are not met. To manage your FBA settings and minimize FBA service fees by prepping your items before sending to an Amazon fulfillment center, visit Fulfillment by Amazon settings at ( link ).
To learn more about packaging and prep requirements, refer to the Help page available at https://sellercentral.amazon.com/gp/help/200141500.
For more information on Amazon fees, please visit the Selling on Amazon Fee Schedule at https://sellercentral.amazon.com/gp/help/200336920.
Regards,
Amazon Seller Services
Seller_olet7eVOHxQZd
Looks like it has a question mark next to it. What does it say?
Seller_olet7eVOHxQZd
Looks like it has a question mark next to it. What does it say?
Seller_zDXVpmGz86diF
At one point the other month, Amazon announced that some Amazon service fees (like FBA fees for picking/packing or whatever) would begin being taxed (state tax?) in certain jurisdictions. But that seems like a high percentage if we’re talking $1.08 tax on $6.38 pick and pack fee.
Unless they’re also going to (GULP) tax basic referral fees, in which case $1.08 on $12.06 ($6.38 + $5.68) is essentially 9%. Does 9% seem like the usual sales tax rate (state, local, city, whatever) for your area (or maybe the area where the order was picked/packed)?
Seller_zDXVpmGz86diF
At one point the other month, Amazon announced that some Amazon service fees (like FBA fees for picking/packing or whatever) would begin being taxed (state tax?) in certain jurisdictions. But that seems like a high percentage if we’re talking $1.08 tax on $6.38 pick and pack fee.
Unless they’re also going to (GULP) tax basic referral fees, in which case $1.08 on $12.06 ($6.38 + $5.68) is essentially 9%. Does 9% seem like the usual sales tax rate (state, local, city, whatever) for your area (or maybe the area where the order was picked/packed)?
Seller_olet7eVOHxQZd
Here’s the letter from Amazon to sellers:
Dear Seller,
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
The above list is some common seller fees. For a complete list of seller fees, refer to the following Help pages:
Selling on Amazon Fee Schedule: https://sellercentral.amazon.com/gp/help/200336920
FBA features, services, and fees: https://sellercentral.amazon.com/gp/help/G201074400
- How will tax be calculated on my seller fees?
For Fulfillment services, the fulfillment center performing the taxable service will determine the tax rate.
For Selling on Amazon fees, the location of your business in a taxable state will determine the tax rate calculated.
- When does this begin and where can I see any tax collected on my seller fees?
Beginning June 1, 2019, Amazon will start collecting sales tax on taxable seller fees. Tax collected will reflect with the order fee on the transaction details of your Payments Reports. Date range payment reports will continue to reflect the sum of fees per order.
- Can I opt out of using FBA fulfillment services that may be taxable?
FBA services are performed on your items when you elect to purchase these services from Amazon or when the packaging and prep requirements are not met. To manage your FBA settings and minimize FBA service fees by prepping your items before sending to an Amazon fulfillment center, visit Fulfillment by Amazon settings at ( link ).
To learn more about packaging and prep requirements, refer to the Help page available at https://sellercentral.amazon.com/gp/help/200141500.
For more information on Amazon fees, please visit the Selling on Amazon Fee Schedule at https://sellercentral.amazon.com/gp/help/200336920.
Regards,
Amazon Seller Services
Seller_olet7eVOHxQZd
Here’s the letter from Amazon to sellers:
Dear Seller,
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
The above list is some common seller fees. For a complete list of seller fees, refer to the following Help pages:
Selling on Amazon Fee Schedule: https://sellercentral.amazon.com/gp/help/200336920
FBA features, services, and fees: https://sellercentral.amazon.com/gp/help/G201074400
- How will tax be calculated on my seller fees?
For Fulfillment services, the fulfillment center performing the taxable service will determine the tax rate.
For Selling on Amazon fees, the location of your business in a taxable state will determine the tax rate calculated.
- When does this begin and where can I see any tax collected on my seller fees?
Beginning June 1, 2019, Amazon will start collecting sales tax on taxable seller fees. Tax collected will reflect with the order fee on the transaction details of your Payments Reports. Date range payment reports will continue to reflect the sum of fees per order.
- Can I opt out of using FBA fulfillment services that may be taxable?
FBA services are performed on your items when you elect to purchase these services from Amazon or when the packaging and prep requirements are not met. To manage your FBA settings and minimize FBA service fees by prepping your items before sending to an Amazon fulfillment center, visit Fulfillment by Amazon settings at ( link ).
To learn more about packaging and prep requirements, refer to the Help page available at https://sellercentral.amazon.com/gp/help/200141500.
For more information on Amazon fees, please visit the Selling on Amazon Fee Schedule at https://sellercentral.amazon.com/gp/help/200336920.
Regards,
Amazon Seller Services
