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Sellers May Be Freed of Some Sales Tax

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Sellers May Be Freed of Some Sales Tax

One of the biggest points of confusion that new Amazon sellers may have is whether they are liable to pay sales tax in each state they sell their products in. It can be confusing because many people are small business owners in one state and have never really sold their products outside of their state before. It is essential that you retain the services of an experienced Amazon CPA who can help you make sure you are filing all necessary taxes so you don’t find yourself in trouble.

Due to the fact that so many sellers have missed out on paying sales tax that they may not have known they were obligated to pay. According to CNBC, Amazon sellers collectively owe roughly $2 billion in sales taxes simply because they didn’t realize they were liable to pay sales taxes in other states. The Multistate Tax Commission will work with sellers to make sure they are compliant with sales taxes in the future. By participating in this program, their liability for back pay may be waived, depending on the state. There are thirteen states participating, including Colorado, Connecticut, Alabama, Arkansas, Kentucky, Louisiana, Nebraska, New Jersey, Oklahoma, Texas, Vermont, and Utah, with 8 other states considering taking part in the program as well.

In some cases, Amazon itself is actually at fault because they will keep sellers’ inventory in their warehouses without informing them of which states it is being stored. Amazon sellers who have found themselves owing sales tax may want to speak with a CPA to determine whether they should sign up for this program. Sign ups begin on August 17 and will be valid for 3 months.

If you have any questions, contact Ebiz Accounting today.

If you are an Amazon seller and require the assistance of an experienced Certified Public Accountant, please contact Ebiz Accounting for an initial consultation.

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