When signing up to sell on Amazon FBA/FBM do I need a sales tax permit and collect sales tax or no?
Yes, you need a sales tax permit and have to collect sales tax on Amazon FBA/FBM sales, depending on your business’s tax nexus in specific states.
Amazon collect sales tax in US so not for the US market, could vary for other markets
Amazon collects the sales tax when you’re selling the products. You need a resale certificate in order to purchase from distributors without the sales tax if it makes sense. If you purchase from a distributor you will pay the same thing product+tax, but if you have a resale certificate which most wholesalers will ask anyway then you pay the goods without the tax.
1 Like
Okay I now understand Amazon collects the tax when I’m selling, is there a way I can just pay the tax when buying from a distributor? Just a tad bit confused on tax when purchasing… a reseller permit is a sales tax license correct?
Most likely, wholesale distributors will not let you open an account without a reseller permit.
a reseller permit is a sales tax license correct?
Yes.
Whether or not you apply for a sales tax license, you a still responsible for reporting and/or remitting sales tax in your legal jurisdiction.
2 Likes
Thank you. I just don’t know if I’m allowed to just lay the tax distributer since I’m buying from them anyways shouldn’t they collect the sales tax selling to me?
What if I want to just lay the tax when purchasing though can I skip a resale certificate?
A “Sales tax permit” that allows you to buy inventory without incurring taxes and, at the same time, empowers you to collect sales tax on behalf of your state. If you’re an Amazon FBA seller, obtaining a sales tax permit is likely a requirement.
To provide an example, if your business operates in New Jersey and you sell a product to a New Jersey resident, the state mandates that you collect sales tax and submit it quarterly.
Additionally, as an Amazon FBA seller, you may also find yourself responsible for paying sales tax in states where your inventory is stored, extending beyond the boundaries of your home state. hope this information fulfills your thoughts, if you have any type of queries about your Amazon business or just getting started feel free to ask thank you so much.
1 Like
That really depends on who you are buying from, and what their tax jurisdictions are. If you bought something from us, we could only charge you sales tax if your order is shipped within the Great State of Texas.
What if I want to just lay the tax when purchasing though can I skip a resale certificate?
Then buy from a retail store.
Don’t know why you fear getting a resale certificate. They’re free, and easy to apply for online. Whether you have one or not, you are still responsible to report and/or remit sales tax in your legal jurisdiction.
as an Amazon FBA seller, you may also find yourself responsible for paying sales tax in states where your inventory is stored,
This is flat out not true.
1 Like