How to Figure Out Sales Tax for Amazon Sellers

Nothing strikes fear in the heart of Amazon FBA sellers quite like sales tax (especially scary terms like sales tax nexus!) This video will help demystify sales tax nexus and provide you with the steps you need to determine your sales tax liability and where you should go from here.

🕰️Timestamps:
0:00: Intro
0:18: Determine where you have Nexus
2:08: Find out how much you owe
3:11: Register and Collect
3:55: File and Remit

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[AcuityEcommerce]

Thank you for watching! What tools do you use when figuring out sales tax? Please leave comments below!

[AbbiWinslow]

This is so helpful! My Dad sales on Amazon and will need this!!

[AP-devt]

Hey Patti, you say it's illegal to collect sales tax without a license, however, what about the fact that Amazon is collecting sales tax on the behalf of their sellers? Does that make those sellers liable?

[onshop]

Hi Catching Clouds Academy, first of all thank you so much for the video it give me at least a little bit of how I deal with my tax, but there are some question that I really hope that you can answer it, pretty please. My prolog is I'm non US resident and want to do a drop shipper of beauty tools, my supplier is in China but they have warehouse in US, my main costumer is in US, I do already have EIN for my LLC and ITIN for me as the owner/manager (for making Bank Account and payment gate away) and here some the question:

1. Due to in the process of making EIN and ITIN take way longer than usual (because I just get in January 2020 for EIN and in August 2020 for ITIN) I cant make any sales or income, Do I still need to pay any taxes for both my LLC or as Individual, if I still don't have any sales in recent year?

2. I just want to confirm, I saw in some the comment, that although you are a non US resident, but have LLC (in my case in Delaware), so I do have Nexus Taxes? which I obligate to register, collect, and remit sales tax in Delaware? is that right? but do I still collecting the tax in Delaware, if even in Delaware I still under the economic threshold?

3. In regards with Tax app like (Avalara, TaxJar, Taxify) do I need to use it before I start selling my goods or after meet the economic threshold I start to use them? or just because nexus taxes in Delaware, I need to use it before I start selling my goods because I need to collect and remit sales tax in Delaware?

I terribly sorry if my question is a bit too long, I also hope that my question can help other people to, because for a non us resident is kind of complicated
I am looking forward to hearing from you and thank you in advance.

[wildwomanenchanted]

Love your name... catching clouds... love that! So good!  and great info too! ~Elizabeth :)

[DPoet]

So if your selling in the US market does that mean that we should apply for a sales tax authority certificate in each state that amazon has a warehouse before you even have potential inventory just to get ahead of amazon storing product in another state?