Need help with your Amazon sales tax compliance? Schedule a 1-hour consultation with Kexin here: calendly.com/ledgergurus-sales-tax/1-hour-sales-tax-consultation. Also, check out our sales tax course here - ledgergurusuniversity.com. Or view our sales tax services and resources page: ledgergurus.com/services/sales-tax/
Hey loved the video!! Very helpful!! Do have one question I ran the monthly sales tax calculation report and in column N (tax collection responsible party) says seller then when I look at column X (total tax) it has 0 for the sum. I figured it was because of the states but the states are VA, OR, CO, NJ, DE, and TX. So does this mean I just need to file 0 in each of these states?
In Texas comptroller What will be input in "Total Texas sales" column, our Total sales of all states or the sales made in Texas state only? Secondly will we consider market place facilitator sales or sales tax collection report sales or combined sales?
I found this great document that explains in detail how to fill out the Texas sales and use tax return - comptroller.texas.gov/forms/01-922.pdf. Box 1 is for sales made in Texas only. Because Amazon is a marketplace facilitator, you would only need the marketplace facilitator report to show taxes on sales into Texas.
Hello! Thank you so much for this video. You are a treasure. I have learned so much from you. When downloading the custom report, do I need to generate it for the whole year? From 01/01/22-12/31/2022? Is that what CDTFA is requiring? Thank you!
Hi, THANK FOR THE VIDEO! I am in Fl, do I need to file taxes even if I did not have any sales on the state? Or only file and pay when I sale? Another question, so amazon collect the sale tax and I am responsible to remit it, correct?
For FL, because you are physically located in FL, you probably need to file a $0 return even if you don’t make any sales. Amazon doesn't automatically collect tax for sales in FL. You would need to make sure your settings in Amazon seller central are setup to collect in FL. Then you would have the responsibility to file and remit the collected sales tax. Also make sure to register before collecting.
Great informative video! My question is if I sell on eBay and Amazon and have to amend my 2019/2020 sale and tax use taxes where would I put the Amazon information? Because they pay the sale taxes on my behalf I am in California.
Hi! Thank you for reaching out! You would put your amazon sales to CA customers as your gross sales, then take the same amount as a deduction under “marketplace facilitated sales” so you arive at $0 tax liability.
For WA, sales tax is reported on the B&O tax return. We believe there’s a threshold where you won’t owe any B&O tax. If you pass the threshold though you’ll have to report and pay B&O tax. We don't think Amazon will take care of that for you. To confirm, you can contact someone from WA DOR. For the sales tax part of the reporting, since amazon already collects and remits for WA, if you report sales tax on the B&O return, you can either take a deduction or credit for the amazon sales/sales tax.
This was very helpful! So in short if I'm in Texas and all of my items sold thus far have had taxes collected by Amazon, I owe 0 on the monthly sales and use return. There are 3 lines I'm using from my reports on the state filing website. Total Texas Sales Taxable Sales Taxable Purchases Should I just enter my total sales as sales before tax and taxable sales as the total amount after what Amazon collected on my behalf for taxes? Im trying to get it to come out to 0 taxes due since Amazon paid them on every product...
Because towards the right, they break down the sales tax by jurisdiction. I would filter out the blanks under “tax collected” OR filter the jurisdiction to only include “state”
Not for this particular piece of it. We've got other Amazon-related videos that have been updated, though - ruclips.net/video/TqF1qjdMP28/видео.html&pp=gAQBiAQB is one of them.
Thank you so much. Would like to know the account summary activity report showing income, expense, tax and amount transfer in Amazon's platform, the income therein are net of sales tax? Appreciate your help.
@@LedgerGurus the income reflected on the Account Summary Activity Report from Amazon's platform is stated net of sales tax or inclusive of sales tax? Thanks
Great Explancation! I have a question. I am Amazon Seller only, however i have seller permit id of PA state. As a result i have to file return on quarterly basis. Should i use these report to submit my sales tax collected and remit information
Hello Ali I live in PA too and I do retail arbitrage. Do you file sales tax for every state you sell or just pa? I have asked this question to many people but nobody really answers. Your reply would be highly appreciated
Great explaination, was very informative! As an international seller, do I still need to pay the sales tax in the US? (given USA and Australia have a double-tax agreement)
You're not paying sales tax as the seller. You're collecting sales tax from your customers and then remitting it back to the states. So, yes, you do still have to worry about sales tax. However, This is completely different if you are an Amazon-only seller (or only sell on marketplaces, like Etsy, eBay, Walmart, etc.) If you are a marketplace-ONLY seller, then the marketplace handles all of your sales tax, except in Missouri (which doesn't have marketplace facilitator laws yet). For a really great education on sales tax and who is on or off the hook, how to do, and 3 things to absolutely NOT do, I recommend you watch our masterclass called "The Uncomplicated Truth about Sales Tax." It's full of valuable, applicable information. - ledgergurus.com/resources/sales-tax-masterclass
Great video, thank you for the information! I'm left a bit confused after running my reports though. When running the custom sales tax calculation report for the 2022 tax year, I have roughly 55 transactions on the report with ship to states of NH, MO, OR, DE, and, MT. However, when reviewing the "Total_Tax" column, every transaction is populated with a zero in that column showing no tax owed. Any insight as to why this might be? Do I not need to remit or report anything since they all show zero?
In my previous question, I meant, besides the three states Amazon does not collect sales taxes for us, do we still have to find out if we have nexus in the states where Amazon already collect sales tax for us? Thank you for the answer to my question from a week ago.
I made a mistake in my previous answer. Here's the corrected one. You don’t need to find out whether you have nexus in the 42 states that Amazon already collects and calculates for you, just worry about the three remaining states. Which two of those states don’t have economic nexus laws yet, so practically as long as you don’t have inventory stored in those states you don’t need to register and collect. Once you start having inventory you can evaluate your options.
Thanks for all your videos! They have been so informative. I do have question. in column X "total tax" This is what I personally would have to pay is that correct? Also, my understanding is that I only need to apply for a states sales tax license in a state that does not have a marketplace facilitator law is that correct? What if I opt to have amazon collect them for me do I still need to apply for a sales tax license in those states?
Yes to both questions. And amazon does not collect in FL MO and KS yet so you’ll be responsible to register, collect, and remit tax collected in those three states.
hi! thank you for the helpful video. When looking at the sheet at column W (Tax Exclusive Selling Price), when adding this column up, should this be gross sales (that I am reporting monthly to the states)? I see that a few returns are also in this column but I compared it to my product sales on my seller central dashboard and the number is off by about $3,000. When comparing all months-this seems to be the same issue - do you know the difference between these 2 numbers on the product sales on seller central dashboard and the number that is in Column W? Thank you!
Hi! We usually use "tax exclusive selling price" to file sales tax returns. Do you mind sending us an email so we can get more details on your situation? Thanks!
We can give you more individualized help specific to your business through a consulting call. You can schedule a time to meet with us at ledgergurus.com/ecommerce-accounting-services/sales-tax/
Hello I had couple sales tax questions. So its my understanding that all states are now market place facilitators including Kansas, Missouri and Florida. Is this correct? My next question is if my Amazon account is set up for them to take the taxes out for all states do I still need file for tax id for all the states that Im selling products to or do I need just file for my tax id to the Nexus state where my products are stored which is Texas.
Hi I have a question I’m really lost . I do AmazonSeller so FBM I fulfill by me so I’m the responsible for the taxes when it come to file tax with the state . What is all my order from out state how do I file it. Please answer me
Thank you for good information. However, I still have several questions: 1. With all states Amazon remit sell tax for me, do I have to register sale tax ID for every state? 2. I downloaded sale tax report as seller responsibility, the sale tax is $O in many itemsIs 3. What different between default PCT setting vs general tax?
1. You definitely don't need to register sales tax ID for every state. 2. On the report that's seller's responsibility, it should only show MO and states where they don't have sales tax, and that's why sales tax isn't collected. 3. Do you mind clarifying what's the default PCT setting?
@@LedgerGurus same on my end sales tax report shows products pct is A_GEN_TAX and only showing up the states that there are no sales tax applicable. The answer is we are not going to do anything I guess. Right Ledger gurus?
@@jacobtt34 Just pay attention to where you have nexus so you can register in those states. You'll only need to file $0 returns in those states, but you still have to register if you have nexus.
@@LedgerGurus Is filing 0$ a must? Because as you know I do not want to file for that states. Is this filing process a a grey area? for specifically Alaska, Delaware, Montana, New Hampshire and Oregon
What if you notice that there are some sales that are showing up on other types of reports, like the All Orders report that don't show on this Sales Tax Report. Is this just a glitch in their system or does this occur frequently and also has to be watched out for?
We are registered in state of Texas and have sales tax filing obligation for that state. We only use FBA for selling. When reporting $0 sales tax to the state what should I report for total sales ? Will it be the total revenue before tax for Texas only ? Or should I show the total revenue for all the states combined ?
@@LedgerGurus I am nonresident so I don’t think I qualify for any deductions. I also set the jurisdiction setting to Texas because of the inbound and outbound sales tax rules.
@@maldine12345 hi you definitely qualify for deduction/exemption for sales tax purposes because all your sales are through marketplace and they already remitted for you. Look through the deductions you can take, if there’s no marketplace option, then I would put all your sales under “exempt sale”.
Hi Rexin, I don't mean to abuse you with so many questions. Besides the states Amazon do not collect the sales tax for us, I hear you talking about us having to find which states do we have nexus at, is this regardless of Amazon already collecting the sales tax in states where we may have physical or economic nexus?
Yes, you need to know where you have nexus because Amazon doesn't collect in individual states until you turn that setting on for the state. And you can't turn on the setting to start collecting until you register in a state, and you can't register until you pass the economic thresholds. That's why you need to know what's going on, even though Amazon does collect and remit after you've turned it on for that state.
Will seller pay to each state their own taxes from where taxes were collected , for California taxes he must go to California tax center , for Texas Texas revenue centre? ?
This is a question that one of our sales tax experts can answer for you. I suggest you schedule a consultation with them. You can do that here: calendly.com/ledgergurus-sales-tax/
Kexin, what if we have not set up our sales tax with Amazon for them to collect in those three states. Are we supposed to pay the sales tax for sales in those states since Amazon did not collect it for us?
Are you talking about Florida, Kansas, and Missouri? If you have nexus in those states, you do have to pay the sales tax, even if Amazon didn't collect it for you. However, you may still be okay if you haven't passed the thresholds yet. Also, remember that you have to register in each state BEFORE you can charge sales tax for it. Check in the appendix of our free "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" download for a list of those thresholds. We're in the final stages of updating that list, but by downloading the current one, you're automatically on the list to receive the new download as soon as it comes out. Here's the link - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
This video was extremely helpful. I live in Ohio. What I am seeing is that my monthly sales tax reports, which are statements of my tax responsibilities exclusive of what Amazon has paid on my behalf, are limited thus far to Missouri, New Hampshire, and Oregon. So when filing my state sales and use tax, I would input my gross sales, then any sales for which Amazon has paid on my behalf under exempt (due to those being interstates sales), which leaves sales on my monthly sales tax report as my responsibility to be paid (those totals found to be only from the states mentioned above). Does this sound correct?
Each state's website differs, but here is the general process for filing and paying: 1. Login to your States’ Department of Revenue website and login (you'll need to register for a sales tax permit if and create an online account if you haven't already done so) 2. Either upload a tax file from one of the automated sales tax software, or manually input data to fill out the forms 3. Click on “file return” 4. Review and submit 5. Make payments accordingly
Hi, Thank you for your video, it was very informative. All of my sales taxes currently are being collected by Amazon. When I pulled up the Sales Tax Report, it displayed the first column but no data below (which confirms I as the seller don't have any sales taxes and everything has been collected by Amazon). I have a state sales tax account for VA. It does not allow me the option to upload, I have to enter the information manually. It asks for Gross Sales and or Rentals/Personal Use/Exempt Sales/Deductions/Qualifying Food Sales and Use/Essentials Personal Hygiene Taxable Sales/Prepaid Wireless Items Sold. Since Amazon is collecting the sales tax, would I enter my current Gross sales and then enter the same number in Exempt Sales. Or do I enter 0 in Gross sales?
Neverminded, I found out the information I was looking for. For anyone who also has the same question. IF you a only a Market place seller, meaning you only do business through a Marketplace Facilitator (Ex Amazon) Amazon is liable and responsible for collecting all sales taxes on my behalf. In this case, since I only do business through the Amazon platform. I went into my state tax sales website and chose the option for "End Liability for Tax" this way I no longer have to submit my information since Amazon is already doing so on my behalf. PLEASE NOTE, for the state of VA (please refer to your own states specific regulations) if you are generating gross sales through a in state storefront OR through your own personal website and generate a min of 100k or have a min of 200 transactions, you are responsible for filling a state sales tax for those additional sources of sales. Hope that helps someone!
@@marissaramossabogal9652 thanks for posting this info! If you have a sales tax permit because you are located in VA (and therefore have nexus there, although you are not liable for sales tax on Amazon) we suggest entering in your VA gross sales and putting the same number as deduction (usually consignment or sold by marketplace facilitator) so you would arrive at $0. This prevents the state from coming to you and asking for proof that you don't owe them any sales tax.
@@marissaramossabogal9652 Thank you so much for the information you provided! I am currently in VA trying to figure out sales tax exemption. Would you mind if we connect? I'd really appreciate it. Again, thank you
So, this video will help you find your Amazon sales tax report. She talks about creating a pivot table at the end, but that can be confusing if you've never done it before and don't know how. She goes into great detail how to set up and read that pivot table in another video - ruclips.net/video/RWZHnD0AEwo/видео.html. Even though that other video is about Shopify, once you've downloaded the report into Excel, it looks pretty much the same as Amazon. If you start at 7:17 she'll walk you through exactly how to set up a pivot table, and that will give you the revenue for each state that you need.
Hi! Which local sales tax are you looking for? Amazon is collecting and filing for state and local jurisdictions except in home ruled states. For example, if you are looking to file in Denver CO, you would download the combined report and filter for Denver CO on the ship to column for city and state.
Thank you so much. When I downloaded my report from January 2021, there's nothing. However, I have sales of more than 20K in Jan which means Amazon paid all of the sales tax yeah?
That depends on if you have nexus and have set Amazon up to collect sales tax. For more information on nexus, you can download our "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" here - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/.
I just found your channel today and I am so grateful to have found such great sales tax information. I do have a question. I am an Amazon FBA seller with inventory in several fulfillment centers in different states. I realize that I would qualify for physical Nexus in those states so does that mean that if I have a sale in the same state I would need to register in that state and simply file a zero return since Amazon remits on my behalf? My specific example is Texas. I have inventory in TX and had a sale in TX this month. Amazon will remit on my behalf but do I need to register and file a zero return? Furthermore, do I have to register in all states where I have inventory and file zero returns each month regardless of sales? Thanks in advance for your guidance!
You're correct on all counts. And yes, if you have physical nexus in a state, you do have to register and file zero returns. For more sales tax guidance, download our PDF "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business." It's chock-full of good information, including a state-by-state table of economic thresholds to pay attention to. Click here to download - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/ Also, we are launching a sales tax course. For more information, click here - ledgergurus.com/sales-tax-course-updates.
I don't have any sales tax on either of the excel sheets just Amazon taxes. Does that mean that I don't have to file anything for my state. I live in Tennessee.
Hi, I am still confused about the tax Amazon submits for us, when I file my sales taxes, any state Amazon is responsible for, we have no action to take? saying for example that all my sales tax is taking care by Amazon. I always here people saying that we still have to file for those taxes even if Amazon does, what are we supposed to file?
You are responsible for filing in the states that do not have marketplace facilitator laws - Missouri, Kansas, and Florida (at this time). Amazon takes care of the rest. As long as your products are sold on amazon.com, amazon is responsible for collecting and remitting sales tax collected on your sales in any state that has marketplace facilitator laws. You can find out exactly how much Amazon remitted by downloading reports - Tax Document Library - select either the combined or marketplace report and filter by state. Amazon files one single return to each state that includes all their sellers’ sales information for that state, but amazon doesn’t go into your account in each state and file it for you. You should be able to report the gross sale and take the same amount of deduction on your state sales tax returns, resulting in a $0 liability return if all your sales are through amazon.
What's the difference between columns W (Tax Exclusive Selling Price) and BG (Taxable Amount)? In your video you mentioned you use column W for reporting gross sales. The totals for those two columns are different for me because I ran coupons. Column W doesn't seem to account for them while column BG does so I'm unsure which to use.
Hi, Kexin! I tried to look for these reports in our tax document library but can only see the "IRS Forms issued by Amazon" for 2019. We don't have the Sales Tax Reports portion. :( What could be wrong? Is there any setting that I should've changed?
Colene, we apologize for the slow response! Kexin looked into this and is not sure what exactly is going on here. If you'd like some personal guidance, feel free to schedule a consultation with Kexin: calendly.com/ledgergurus-sales-tax
Thanks for the video, I really like your videos about sales tax collection for Amazon FBA sellers. I think today(in 2022) Amazon is collecting and remiting sales tax for all states but I didn't see the Missouri. Is Amazon collect and remit sales tax for Missouri as well? Do we have to register to all states for informing them as a FBA seller with 0 sales tax because Amazon collecting and remiting? Do we have to pay sales tax to the states where our products are stored in Amazon Fullfillment Centers as well? and Lastly, Is our distributor, supplier, manufacturer in US count as a contractor? Because I know contractors is causing to physical nexus. May I kindly request from you to record a new video about physical nexus for Amazon FBA sellers in 2022?(including non US sellers who has an LLC in US) Please 🙏🙏🙏
Hi, thank you so much for the recommendation! We will definitely add that to our list. To answer your questions: Amazon will start collecting in MO starting January 2023. You don't owe anything because Amazon is collecting and remitting to the states. FBA and contractors (if they are establishing markets for you) technically create nexus, but again if you owe $0, then even if you register, you'll be filing $0 returns.
I started Amazon in mid July 2022 and I was unaware of the Tax settings in Seller Central. I just set that one up to A_Gen_Tax because I sell various diff products. In the Sales Tax Calculation Report for the months July, August, Sept, I see the Product_Tax_Code shows as A_GEN_NOTAX. What are my next steps now. How do I determine what I owe to my state?
@@jacobtt34 You don't need to worry about collecting and remitting at the moment, though you do need to be paying attention to which states you have nexus in so you know where to register. You'll still only have to file $0 returns, but you do need to register where you have nexus.
PLEASE...I need your help! My Tax Document Library won't pull anything up but the columns. Apparently, (and I don't know if this is why) I didn't set up my State Tax right in settings. On my fulfillment page and Inventory Lab it shows Amazon has collected the tax. Does that mean they also sent it to the proper states? Or no because I didn't have it set up right? I'm So Confused!! THANK YOU!!
If the document only has headers on it then that means you are not selling into any states that Amazon is not collecting and remitting. Try pulling up the combined reports and you should see a lot more information there.
Hi, thank you !!!!!! 1)I am an Amazon business seller based in California. All of my inventory are in California. Fulfilled /ship by myself, not FBA. But I do ship my orders from California to these states: Florida, Kansas and Missouri.…Does that mean I have nexus with them? Do I have to add those states in the state tax setting on amazon central? 2) I’m a little confused as I haven't yet set up sales tax collection under seller central's "Tax settings" for Missouri, Florida, or Kansas.I just generated a custom tax remittance form from my seller central account. The csv file was blank….. Does that mean i don't need to do anything? i have nothing to remit?
If you don't keep inventory in Florida or Missouri, then you don't have to worry about paying sales tax there. Kansas is tricky as they don’t have an economic nexus law. Currently if you sell into the state, you should register. There is an effort to change that, but that's how it stands right now. We are getting ready to launch a course on all things sales tax For information and updates, go to ledgergurus.com/resources/sales-tax-course-updates/
Hello, I’m a seller in California. I started my FBA business in July. It’s time to report the sale tax. But I did not find any tax information in my account according to your instructions. They are blank. What should I do? Thank you sososo much.
For the sales tax report, it’s empty because Amazon is collecting and remitting in all the states that you sell to. Try downloading the combined report and that should give you all the information. Let us know if that doesn’t work out.
thanks a lot . I found all the places, whether it’s the combined sales tax or the sales tax report. All of them are block .So when I fill in the sales tax, can I fill everything as 0? Will it conflict with the numbers report by Amazon for me? Thank you
Should we need to report those 5 states (delaware oregon etc.) sales tax (they dont contain sales tax)? Because these states are there in the sales tax report and I have not reported that in the last year. Please help me :)
There's nothing to report unless sales tax has been collected. And since those states don't have state sales tax, you don't need to worry about reporting. Now, you may want to pay attention to Alaska because some of the local communities have sales tax. You'll have to see if you're selling into those communities and then change your sales tax settings accordingly. Amazon won't automatically collect from there and they don't automatically remit there either. You're responsible for that. If you have more questions about this, you can schedule a sales tax consultation with our sales tax experts - calendly.com/ledgergurus-sales-tax/?
@@LedgerGurus thank you for the past year collected sales tax is zero for the seller. (In the sales tax report from amazon) I am at least okay for last year I guess but next years I need to be changing settings for Alaska right?
Thank you so much for the helpful video. I have a question. When I downloaded Sales Tax Calculation Report, I found out that I have nothing in my report. I only have transactions when I download Marketplace Tax Collection Report for some reason. Does it mean that Amazon collected sales tax from customers and filed it on my behalf? I recently filed my Sales and Use Tax Return to California Department of Tax and Fee Administration and when I was filing, I entered the total of Display Price on the Excel file I downloaded from Amazon Marketplace Tax Collection Report (Column U) and I entered the same total on "Other Nontaxable Sales" section when filing on CDTFA. As a description, I wrote "Amazon" next to the amount. I guess even if Amazon collects taxes and files them on our behalf, we still need to file our Sales and Use Tax Return every quarter but list the total sales amount under "Other Nontaxable Sales" so we report it and we don't have to pay for it again. Is that right?
Rexin, Amazon charges sales tax to all the customers that buy from me, (all over the country, NC, VA, CA, TX etc..., I can see that in every transaction, and its listed as " Marketplace withheld tax $...... , am I missing something? I have not registered in any state other than the one I registered my business at.
Hi, I love your videos, thank you. I have a doubt, when I open Tax Document Library, I can not see any IRS Forms (1099K), do you think it is because I have an LLC? And also, when I download the "For remittance" documents, they download completely empty, do you have any idea why it happens? I have texted and called Amazon many times, and they don't even understand what I need :( Thank you very much.
I’m not sure why you can’t see any 1099K. What’s your tax entity type? Are you an LLC taxed as a sole proprietorship? For the sales tax report, it’s empty because Amazon is collecting and remitting in all the states that you sell to. Try downloading the combined report and that should give you all the information. Let us know if that doesn’t work out.
@@LedgerGurus Thank you very much. I have a Partnership LLC (we are two people on it). I tried the combination report, I got the Information only report but it doesn't work to do the sales tax. The For remittance reports are the ones I can not get, they download empty, do you have any idea why it happens? Thank you.
@@imagoadvertising426 It’s empty because “for remittance” means sales tax you are responsible for remitting. Since amazon is collecting and remitting for you you don’t have any sales that are you responsible for and that’s why it’s empty. You should be able to find the information on the combined report. Why did it not work to file sales tax?
hi there you mentioned that amazon collected sales tax in those 47 states and what if on out 47 we have 13 sales tax id do we need to add the sales tax Id in the amazon ?
Amazon collects in 42 states currently. All 45 states that have sales tax except FL KS and MO. For the 42 states that amazon is collecting there’s no place to add your tax ID. One more thing, we at LedgerGurus are in the process of creating a course for online sellers to teach them how to register, file, and remit sales tax. We want to make sure that we are providing exactly what online sellers need and are looking for. Would you be interested in giving us a few minutes of your time so we can ask you some questions. If so, please click this link to schedule a time - calendly.com/kelleybirrell. Thank you!
Hi, thank you for so helpful video. I have a doubt about Washington. I registered on the State of Washington to collect the B&O Tax. But, Amazon has been not able to inform me where I have to add this information on the Tax Setting section, so how can I ask Amazon to collect the B&O Tax on the State of Washington for me to be able to submit them?? Thank you.
Amazon won’t. They don’t have an obligation to do that until Washington requires Amazon to collect B&O tax. The current marketplace facilitator law only covers sales tax. It’s a cost of doing business in WA, it’s like income tax. You don’t collect it from anyone, it’s a tax you need to pay for the privilege of doing business in WA.
is it abnormal that my total tax (column X) and total tax collected by amazon (column y) are both 0 i just wanna make sure im doing it correctly before submitting. thanks
@@LedgerGurus nice i found it, one more thing, so for every state ive shipped to, am i to file for that state as well? cause man thats a lot lol and i think id rather pay someone for now
Do you mean how do you set up dropdown menus in each column? This is such a useful trick! - Highlight the entire column by double-clicking on the top box (with the letter in it). - Click on the *Data* menu at the top, and then click on *Data Validation* in the *Data Tools* section. - On the *Settings* tab under *Allow*, click on *List.* - That'll pop up another box called *Source*. List your dropdown choices in that box, separated with a comma. - Once you click *OK*, your column boxes should be good to go.
Okay so I downloaded combined and I can see all the information but Does anyone know why my excel does not have options to filter by states? like she has dropdown options>>?
You have to create a pivot table to get excel to filter by states. Kexin talks about how to do it in this video - ruclips.net/video/RWZHnD0AEwo/видео.html. I've got it cued up to exactly where she starts talking about it.
help please! how can I pull my sales tax report on orders where my Tax Calculation Settings weren't set? I know I would still owe those particular states money. I didn't have my settings input for the first month or two of my selling
Which states are you worried about? You should be able to pull the combined report and filter for “seller” under “responsible party” to see the sales Amazon is not responsible for.
@@LedgerGurus i feel like I had sales in FL and Kansas before the marketplace facilitator laws went into effect. But nothing shows when I filter for seller. Because the specific products I sold there were nontaxable, maybe? I don't know what to make of it
@@tevinlofton1446 If you're brand-new to selling, you probably don't need to worry about it because it's unlikely you had physical nexus in those states yet (unless one of them is your home state or you had inventory stored in one of them) and they didn't have economic nexus laws in place yet.
If the tax calculation report is blank that might mean you don’t have sales into the states amazon is not collecting for. Try downloading the combined report instead.
what if i have been an amazon seller for 5 months i did all the things you explained on the video but on the exel page on all the months there is nothing on it. what is going on? I have sold things..so,at least something should be there
Try downloading the combined report or the marketplace report instead of the tax calculation report. It’s very likely that all your sales went to states where Amazon is in charge of collecting and remitting sales tax.
Rexin, I think I am going to get crazy with this sales tax; Amazon is required by law to collect and remit sales tax lets say in California for sales I make there (my business is not registered in CA), but you are saying that if I don't reach the economic threshold for me to be able to register there ( and all the other states) and turn the setting on, Amazon won't remit that tax to Ca? am I understanding correctly? what does Amazon do with all that $? hold it for me until I am required and turn it on? I hope your head is not spinning like mine, Lol!
Hi Chubby, first you should not collect sales tax from customers in states where you have not registered for a sales tax permit. In states where you determine you have nexus (for help with understanding nexus, watch this video: ruclips.net/video/_WHEq2T530I/видео.html) you will want to register, collect (if Amazon isn't collecting in that state, or collect on other sales channels you are selling on) and remit (again, if Amazon isn't collecting and remitting in a state, or if you have other sales channels). If you are still struggling to know what to do, you can schedule a sales tax consultation here: calendly.com/ledgergurus-sales-tax/1-hour-sales-tax-consultation
In addition to our last comment, if you have already sold product that you were liable for sales tax on, you can also go back and pay sales tax out of pocket after registering with the necessary state(s). Or you can take on the risk of unpaid sales tax and the associated penalty fees that states could come after you with.
Hi Kexin, thank you so much for all your help. I am still confused with filling sales tax. If Amazon is collecting and remitting the sales tax for basically all states except 3, do I still have to find where I have nexus? either physical or economic? Please clarify.
Great Info Thank you....How do you seperate nys taxes from other taxes out of state if that makes sense. Our tax man needs nys sales tax info dont know how to seperate it...
Hi, since Amazon collects sales tax for New York, you'll need to download the combined report instead of the tax calculation report. Then you can add a filter to the spreadsheet and filter the "state" column for just NY.
Need help with your Amazon sales tax compliance? Schedule a 1-hour consultation with Kexin here: calendly.com/ledgergurus-sales-tax/1-hour-sales-tax-consultation. Also, check out our sales tax course here - ledgergurusuniversity.com.
Or view our sales tax services and resources page: ledgergurus.com/services/sales-tax/
You are invaluable. I searched for quite some time for a video like this and FINALLY found it. Thanks!
No problem at all!
Because Amazon includes sales tax on gross sales, where on the Schedule C form do you deduct the sales tax? Thanks in advace!
We are not income tax accountants, so we recommend you talk to your accountant on this one.
Please make one video for actually remitting the sales tax! That would be highly appreciated!!
We cover this in depth in our sales tax course. Would you like to learn more about it?
Thank you so much, this was extremely helpful!
So good to hear!
Thank you for explaining this tax forms. Very much appreciated it.
Of course! So glad you found it helpful!
So much love and a big thank you.
Of course! Thank you for your support!
Thank you SOOOOOOOO much!!!!! Glad I found your video!
I'm so glad you liked it! Subscribe for more videos like this one.
Kexin's the best teacher! Thank you!
Does this reports only shows the produts fullfilled by amazon? Where can you find the report for all the products you sold for the moth/quarter?
No this report should show all your sale. Make sure to download the “combined” report.
Thank you for all the helpful Information!!
Of course! We are glad you found it helpful!
Great job
Thanks!
Hey loved the video!! Very helpful!! Do have one question I ran the monthly sales tax calculation report and in column N (tax collection responsible party) says seller then when I look at column X (total tax) it has 0 for the sum. I figured it was because of the states but the states are VA, OR, CO, NJ, DE, and TX. So does this mean I just need to file 0 in each of these states?
I would ran the combined report instead of tax calculation report. And which states are you registered in?
Thank you so much!! So helpful and informative. Love & Gratitude 😊
You are very welcome! Glad to help!
Do you have any videos explaining the same for Etsy?
No, but the concepts are the same.
Thank you so much. Do you guys do tax for Canada?
No, we specialize in US-based sales tax only.
In Texas comptroller What will be input in "Total Texas sales" column, our Total sales of all states or the sales made in Texas state only?
Secondly will we consider market place facilitator sales or sales tax collection report sales or combined sales?
I found this great document that explains in detail how to fill out the Texas sales and use tax return - comptroller.texas.gov/forms/01-922.pdf. Box 1 is for sales made in Texas only. Because Amazon is a marketplace facilitator, you would only need the marketplace facilitator report to show taxes on sales into Texas.
Hello! Thank you so much for this video. You are a treasure. I have learned so much from you. When downloading the custom report, do I need to generate it for the whole year? From 01/01/22-12/31/2022? Is that what CDTFA is requiring? Thank you!
Yes that’s correct! And I’m so glad it’s been helpful!
Thank you for an excellent excellent video.
I cannot thank you enough for this video!! Thank you! ❤️
You are very welcome!
Very helpful video~ thank you.
Yay! Glad you liked it!
very very educative information, keep it up. Thanks
We're so glad you liked it. Subscribe for even more videos like this. :)
Hi, THANK FOR THE VIDEO!
I am in Fl, do I need to file taxes even if I did not have any sales on the state? Or only file and pay when I sale? Another question, so amazon collect the sale tax and I am responsible to remit it, correct?
For FL, because you are physically located in FL, you probably need to file a $0 return even if you don’t make any sales. Amazon doesn't automatically collect tax for sales in FL. You would need to make sure your settings in Amazon seller central are setup to collect in FL. Then you would have the responsibility to file and remit the collected sales tax. Also make sure to register before collecting.
Great informative video! My question is if I sell on eBay and Amazon and have to amend my 2019/2020 sale and tax use taxes where would I put the Amazon information? Because they pay the sale taxes on my behalf I am in California.
Hi! Thank you for reaching out! You would put your amazon sales to CA customers as your gross sales, then take the same amount as a deduction under “marketplace facilitated sales” so you arive at $0 tax liability.
Thank you so much for the video! For WA, the DOR wants sellers to pay a B&O tax in addition to sales tax, what should sellers do?
For WA, sales tax is reported on the B&O tax return. We believe there’s a threshold where you won’t owe any B&O tax. If you pass the threshold though you’ll have to report and pay B&O tax. We don't think Amazon will take care of that for you. To confirm, you can contact someone from WA DOR.
For the sales tax part of the reporting, since amazon already collects and remits for WA, if you report sales tax on the B&O return, you can either take a deduction or credit for the amazon sales/sales tax.
This was very helpful! So in short if I'm in Texas and all of my items sold thus far have had taxes collected by Amazon, I owe 0 on the monthly sales and use return. There are 3 lines I'm using from my reports on the state filing website. Total Texas Sales
Taxable Sales
Taxable Purchases
Should I just enter my total sales as sales before tax and taxable sales as the total amount after what Amazon collected on my behalf for taxes? Im trying to get it to come out to 0 taxes due since Amazon paid them on every product...
Hi Erica, I would put total sales as your amazon sales, then take the same amount as deduction/exemption, then it would go to $0.
@@LedgerGurus But this heading is "Total Texas sales" so still we would put total sales for all states?
Hi, on the Custom Combined Tax report, why is the same order on multiple lines?
Because towards the right, they break down the sales tax by jurisdiction. I would filter out the blanks under “tax collected” OR filter the jurisdiction to only include “state”
Do you have an updated video for amz? Thank you.
Not for this particular piece of it. We've got other Amazon-related videos that have been updated, though - ruclips.net/video/TqF1qjdMP28/видео.html&pp=gAQBiAQB is one of them.
kaxin you have been a great help Thanks alot.
Thank you so much. Would like to know the account summary activity report showing income, expense, tax and amount transfer in Amazon's platform, the income therein are net of sales tax? Appreciate your help.
I'm not sure I understand your question. Are you asking which report will show you this?
@@LedgerGurus the income reflected on the Account Summary Activity Report from Amazon's platform is stated net of sales tax or inclusive of sales tax? Thanks
Answer found, the income stated in the statement is net of sales tax. T
Great Explancation! I have a question. I am Amazon Seller only, however i have seller permit id of PA state. As a result i have to file return on quarterly basis. Should i use these report to submit my sales tax collected and remit information
Yes, but you should only have to file $0 returns because Amazon collects and remits for you in PA.
Hello Ali
I live in PA too and I do retail arbitrage. Do you file sales tax for every state you sell or just pa? I have asked this question to many people but nobody really answers. Your reply would be highly appreciated
Great explaination, was very informative!
As an international seller, do I still need to pay the sales tax in the US? (given USA and Australia have a double-tax agreement)
You're not paying sales tax as the seller. You're collecting sales tax from your customers and then remitting it back to the states. So, yes, you do still have to worry about sales tax. However, This is completely different if you are an Amazon-only seller (or only sell on marketplaces, like Etsy, eBay, Walmart, etc.) If you are a marketplace-ONLY seller, then the marketplace handles all of your sales tax, except in Missouri (which doesn't have marketplace facilitator laws yet). For a really great education on sales tax and who is on or off the hook, how to do, and 3 things to absolutely NOT do, I recommend you watch our masterclass called "The Uncomplicated Truth about Sales Tax." It's full of valuable, applicable information. - ledgergurus.com/resources/sales-tax-masterclass
this video is very useful but it would have been great if you had calculated the tax we have to submit and file the sales tax with the audience
Great suggestion!
Hi! thank you for all this info. I don't understand why I have 0 in "Total Tax" when "Tax collection" shows Seller…..
They might be sales to states that do not have sales tax, for example Montana Oregon etc.
Great video, thank you for the information! I'm left a bit confused after running my reports though. When running the custom sales tax calculation report for the 2022 tax year, I have roughly 55 transactions on the report with ship to states of NH, MO, OR, DE, and, MT. However, when reviewing the "Total_Tax" column, every transaction is populated with a zero in that column showing no tax owed. Any insight as to why this might be? Do I not need to remit or report anything since they all show zero?
Those states don't have sales tax, therefore, you are good to not report in those states.
I just generated one to estimate im getting same issue shows 0
Great information! Question, why can't I see my tax document library? I don't see any 1099
Hi! There's no documents under your tax document library? Have you contacted support?
In my previous question, I meant, besides the three states Amazon does not collect sales taxes for us, do we still have to find out if we have nexus in the states where Amazon already collect sales tax for us? Thank you for the answer to my question from a week ago.
I made a mistake in my previous answer. Here's the corrected one. You don’t need to find out whether you have nexus in the 42 states that Amazon already collects and calculates for you, just worry about the three remaining states. Which two of those states don’t have economic nexus laws yet, so practically as long as you don’t have inventory stored in those states you don’t need to register and collect. Once you start having inventory you can evaluate your options.
Thanks for all your videos! They have been so informative. I do have question. in column X "total tax" This is what I personally would have to pay is that correct? Also, my understanding is that I only need to apply for a states sales tax license in a state that does not have a marketplace facilitator law is that correct? What if I opt to have amazon collect them for me do I still need to apply for a sales tax license in those states?
Yes to both questions. And amazon does not collect in FL MO and KS yet so you’ll be responsible to register, collect, and remit tax collected in those three states.
hi! thank you for the helpful video. When looking at the sheet at column W (Tax Exclusive Selling Price), when adding this column up, should this be gross sales (that I am reporting monthly to the states)? I see that a few returns are also in this column but I compared it to my product sales on my seller central dashboard and the number is off by about $3,000. When comparing all months-this seems to be the same issue - do you know the difference between these 2 numbers on the product sales on seller central dashboard and the number that is in Column W? Thank you!
Hi! We usually use "tax exclusive selling price" to file sales tax returns. Do you mind sending us an email so we can get more details on your situation? Thanks!
Thank you!
When I do this, my tax amount in column Y is $0. I live in California and would like to see what i need to report to the state.
We can give you more individualized help specific to your business through a consulting call. You can schedule a time to meet with us at ledgergurus.com/ecommerce-accounting-services/sales-tax/
Hello I had couple sales tax questions. So its my understanding that all states are now market place facilitators including Kansas, Missouri and Florida. Is this correct? My next question is if my Amazon account is set up for them to take the taxes out for all states do I still need file for tax id for all the states that Im selling products to or do I need just file for my tax id to the Nexus state where my products are stored which is Texas.
Yes all the states except MO. Yes only to the states where you have nexus :)
Hi I have a question I’m really lost . I do AmazonSeller so FBM I fulfill by me so I’m the responsible for the taxes when it come to file tax with the state . What is all my order from out state how do I file it. Please answer me
Hi! Are you sure Amazon doesn't collect and remit sales taxes for you? Do you mind downloading the combined report from Amazon and check again?
My sales tax calculation report shows blank in seller central. Do i need to do update my tax settings?
Try downloading the combined report. Here's also an updated video: ruclips.net/video/I1bLb5SCk4I/видео.html
Thank you for good information. However, I still have several questions:
1. With all states Amazon remit sell tax for me, do I have to register sale tax ID for every state?
2. I downloaded sale tax report as seller responsibility, the sale tax is $O in many itemsIs
3. What different between default PCT setting vs general tax?
1. You definitely don't need to register sales tax ID for every state. 2. On the report that's seller's responsibility, it should only show MO and states where they don't have sales tax, and that's why sales tax isn't collected. 3. Do you mind clarifying what's the default PCT setting?
@@LedgerGurus same on my end sales tax report shows products pct is A_GEN_TAX and only showing up the states that there are no sales tax applicable. The answer is we are not going to do anything I guess. Right Ledger gurus?
@@jacobtt34 Just pay attention to where you have nexus so you can register in those states. You'll only need to file $0 returns in those states, but you still have to register if you have nexus.
@@LedgerGurus Is filing 0$ a must? Because as you know I do not want to file for that states. Is this filing process a a grey area? for specifically Alaska, Delaware, Montana, New Hampshire and Oregon
What if you notice that there are some sales that are showing up on other types of reports, like the All Orders report that don't show on this Sales Tax Report. Is this just a glitch in their system or does this occur frequently and also has to be watched out for?
It’s usually a timing difference.
What is the tax exclusive selling price
Hi! That’s the title of the column in the amazon report.
We are registered in state of Texas and have sales tax filing obligation for that state. We only use FBA for selling. When reporting $0 sales tax to the state what should I report for total sales ? Will it be the total revenue before tax for Texas only ? Or should I show the total revenue for all the states combined ?
I would report sales to Texas customers only and take the same amount as deduction.
@@LedgerGurus I am nonresident so I don’t think I qualify for any deductions. I also set the jurisdiction setting to Texas because of the inbound and outbound sales tax rules.
@@LedgerGurus also thank you for your reply. You are really good at responding.
@@maldine12345 hi you definitely qualify for deduction/exemption for sales tax purposes because all your sales are through marketplace and they already remitted for you. Look through the deductions you can take, if there’s no marketplace option, then I would put all your sales under “exempt sale”.
Hi Rexin, I don't mean to abuse you with so many questions. Besides the states Amazon do not collect the sales tax for us, I hear you talking about us having to find which states do we have nexus at, is this regardless of Amazon already collecting the sales tax in states where we may have physical or economic nexus?
Yes, you need to know where you have nexus because Amazon doesn't collect in individual states until you turn that setting on for the state. And you can't turn on the setting to start collecting until you register in a state, and you can't register until you pass the economic thresholds. That's why you need to know what's going on, even though Amazon does collect and remit after you've turned it on for that state.
Will seller pay to each state their own taxes from where taxes were collected , for California taxes he must go to California tax center , for Texas Texas revenue centre? ?
Yep, that's exactly how it works.
Can you choose not to sell your products in certain states when using FBA?
I'm afraid sellers don't have control over which states Amazon stores their inventories in.
Is there any way we could find total sales tax on Amazon fulfillment fee and seller fee invoices which comes every month.
This is a question that one of our sales tax experts can answer for you. I suggest you schedule a consultation with them. You can do that here: calendly.com/ledgergurus-sales-tax/
Kexin, what if we have not set up our sales tax with Amazon for them to collect in those three states. Are we supposed to pay the sales tax for sales in those states since Amazon did not collect it for us?
Are you talking about Florida, Kansas, and Missouri? If you have nexus in those states, you do have to pay the sales tax, even if Amazon didn't collect it for you. However, you may still be okay if you haven't passed the thresholds yet. Also, remember that you have to register in each state BEFORE you can charge sales tax for it. Check in the appendix of our free "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" download for a list of those thresholds. We're in the final stages of updating that list, but by downloading the current one, you're automatically on the list to receive the new download as soon as it comes out. Here's the link - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
This video was extremely helpful. I live in Ohio. What I am seeing is that my monthly sales tax reports, which are statements of my tax responsibilities exclusive of what Amazon has paid on my behalf, are limited thus far to Missouri, New Hampshire, and Oregon. So when filing my state sales and use tax, I would input my gross sales, then any sales for which Amazon has paid on my behalf under exempt (due to those being interstates sales), which leaves sales on my monthly sales tax report as my responsibility to be paid (those totals found to be only from the states mentioned above). Does this sound correct?
Yes, gross sales minus inter-state sales minus sales collected by marketplace facilitators equals $0 sales tax liability.
great
Very informative vedio "I like it"
Thank you for the video!👍 How to file the sales information on the state website?
Each state's website differs, but here is the general process for filing and paying:
1. Login to your States’ Department of Revenue website and login (you'll need to register for a sales tax permit if and create an online account if you haven't already done so)
2. Either upload a tax file from one of the automated sales tax software, or manually input data to fill out the forms
3. Click on “file return”
4. Review and submit
5. Make payments accordingly
Hi, Thank you for your video, it was very informative. All of my sales taxes currently are being collected by Amazon. When I pulled up the Sales Tax Report, it displayed the first column but no data below (which confirms I as the seller don't have any sales taxes and everything has been collected by Amazon). I have a state sales tax account for VA. It does not allow me the option to upload, I have to enter the information manually. It asks for Gross Sales and or Rentals/Personal Use/Exempt Sales/Deductions/Qualifying Food Sales and Use/Essentials Personal Hygiene Taxable Sales/Prepaid Wireless Items Sold. Since Amazon is collecting the sales tax, would I enter my current Gross sales and then enter the same number in Exempt Sales. Or do I enter 0 in Gross sales?
Neverminded, I found out the information I was looking for. For anyone who also has the same question. IF you a only a Market place seller, meaning you only do business through a Marketplace Facilitator (Ex Amazon) Amazon is liable and responsible for collecting all sales taxes on my behalf. In this case, since I only do business through the Amazon platform. I went into my state tax sales website and chose the option for "End Liability for Tax" this way I no longer have to submit my information since Amazon is already doing so on my behalf. PLEASE NOTE, for the state of VA (please refer to your own states specific regulations) if you are generating gross sales through a in state storefront OR through your own personal website and generate a min of 100k or have a min of 200 transactions, you are responsible for filling a state sales tax for those additional sources of sales. Hope that helps someone!
@@marissaramossabogal9652 thanks for posting this info! If you have a sales tax permit because you are located in VA (and therefore have nexus there, although you are not liable for sales tax on Amazon) we suggest entering in your VA gross sales and putting the same number as deduction (usually consignment or sold by marketplace facilitator) so you would arrive at $0. This prevents the state from coming to you and asking for proof that you don't owe them any sales tax.
@@marissaramossabogal9652 Thank you so much for the information you provided! I am currently in VA trying to figure out sales tax exemption. Would you mind if we connect? I'd really appreciate it. Again, thank you
How do I determine how much revenue was made from each state? I need this information to when I'm filing for sales and use tax.
So, this video will help you find your Amazon sales tax report. She talks about creating a pivot table at the end, but that can be confusing if you've never done it before and don't know how. She goes into great detail how to set up and read that pivot table in another video - ruclips.net/video/RWZHnD0AEwo/видео.html. Even though that other video is about Shopify, once you've downloaded the report into Excel, it looks pretty much the same as Amazon. If you start at 7:17 she'll walk you through exactly how to set up a pivot table, and that will give you the revenue for each state that you need.
QUESTION; WHERE DO I GO ON AMAZON SELLER CENTRAL TO FILE FOR LOCAL SALE TAX ? I CAN NEVER SEEN TO FIND THE LOCAL TAX REPORT , THANKS
Hi! Which local sales tax are you looking for? Amazon is collecting and filing for state and local jurisdictions except in home ruled states. For example, if you are looking to file in Denver CO, you would download the combined report and filter for Denver CO on the ship to column for city and state.
Thank you so much. When I downloaded my report from January 2021, there's nothing. However, I have sales of more than 20K in Jan which means Amazon paid all of the sales tax yeah?
That depends on if you have nexus and have set Amazon up to collect sales tax. For more information on nexus, you can download our "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" here - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/.
I just found your channel today and I am so grateful to have found such great sales tax information. I do have a question. I am an Amazon FBA seller with inventory in several fulfillment centers in different states. I realize that I would qualify for physical Nexus in those states so does that mean that if I have a sale in the same state I would need to register in that state and simply file a zero return since Amazon remits on my behalf? My specific example is Texas. I have inventory in TX and had a sale in TX this month. Amazon will remit on my behalf but do I need to register and file a zero return? Furthermore, do I have to register in all states where I have inventory and file zero returns each month regardless of sales? Thanks in advance for your guidance!
You're correct on all counts. And yes, if you have physical nexus in a state, you do have to register and file zero returns. For more sales tax guidance, download our PDF "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business." It's chock-full of good information, including a state-by-state table of economic thresholds to pay attention to. Click here to download - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
Also, we are launching a sales tax course. For more information, click here - ledgergurus.com/sales-tax-course-updates.
I don't have any sales tax on either of the excel sheets just Amazon taxes. Does that mean that I don't have to file anything for my state. I live in Tennessee.
Probably. Thank goodness for marketplace facilitator laws, right! It makes it easier for you.
Hi, I am still confused about the tax Amazon submits for us, when I file my sales taxes, any state Amazon is responsible for, we have no action to take? saying for example that all my sales tax is taking care by Amazon. I always here people saying that we still have to file for those taxes even if Amazon does, what are we supposed to file?
You are responsible for filing in the states that do not have marketplace facilitator laws - Missouri, Kansas, and Florida (at this time). Amazon takes care of the rest. As long as your products are sold on amazon.com, amazon is responsible for collecting and remitting sales tax collected on your sales in any state that has marketplace facilitator laws. You can find out exactly how much Amazon remitted by downloading reports - Tax Document Library - select either the combined or marketplace report and filter by state. Amazon files one single return to each state that includes all their sellers’ sales information for that state, but amazon doesn’t go into your account in each state and file it for you. You should be able to report the gross sale and take the same amount of deduction on your state sales tax returns, resulting in a $0 liability return if all your sales are through amazon.
Do I have to file sale tax for every state or just where I live in? I have been asking this question to do many people but nobody really answers
What's the difference between columns W (Tax Exclusive Selling Price) and BG (Taxable Amount)? In your video you mentioned you use column W for reporting gross sales. The totals for those two columns are different for me because I ran coupons. Column W doesn't seem to account for them while column BG does so I'm unsure which to use.
You should use taxable amount in your situation!
@@LedgerGurus thank you!!
@@kristendescoteaux8499 of course!
Hi, Kexin! I tried to look for these reports in our tax document library but can only see the "IRS Forms issued by Amazon" for 2019. We don't have the Sales Tax Reports portion. :( What could be wrong? Is there any setting that I should've changed?
Colene, we apologize for the slow response! Kexin looked into this and is not sure what exactly is going on here. If you'd like some personal guidance, feel free to schedule a consultation with Kexin: calendly.com/ledgergurus-sales-tax
Thanks for the video, I really like your videos about sales tax collection for Amazon FBA sellers. I think today(in 2022) Amazon is collecting and remiting sales tax for all states but I didn't see the Missouri. Is Amazon collect and remit sales tax for Missouri as well? Do we have to register to all states for informing them as a FBA seller with 0 sales tax because Amazon collecting and remiting? Do we have to pay sales tax to the states where our products are stored in Amazon Fullfillment Centers as well? and Lastly, Is our distributor, supplier, manufacturer in US count as a contractor? Because I know contractors is causing to physical nexus. May I kindly request from you to record a new video about physical nexus for Amazon FBA sellers in 2022?(including non US sellers who has an LLC in US) Please 🙏🙏🙏
Hi, thank you so much for the recommendation! We will definitely add that to our list. To answer your questions: Amazon will start collecting in MO starting January 2023. You don't owe anything because Amazon is collecting and remitting to the states. FBA and contractors (if they are establishing markets for you) technically create nexus, but again if you owe $0, then even if you register, you'll be filing $0 returns.
I started Amazon in mid July 2022 and I was unaware of the Tax settings in Seller Central. I just set that one up to A_Gen_Tax because I sell various diff products. In the Sales Tax Calculation Report for the months July, August, Sept, I see the Product_Tax_Code shows as A_GEN_NOTAX. What are my next steps now. How do I determine what I owe to my state?
Can you check for me the “ship to state” associated with those transactions? Usually it’s for states that don’t have sales tax.
@@LedgerGurus if only those states are there in the report, should we do anything?
@@jacobtt34 You don't need to worry about collecting and remitting at the moment, though you do need to be paying attention to which states you have nexus in so you know where to register. You'll still only have to file $0 returns, but you do need to register where you have nexus.
But there was a point which says standart tax and amazon tax , wen amazon is doin everything than we stiLl need to calculate those tax?
Can you please restate your question? I'm not sure what you're asking.
Miss, how we calculate the VAT
I'm sorry, but we only handle US sales tax. You'll have to ask that question from someone who handles the VAT.
PLEASE...I need your help! My Tax Document Library won't pull anything up but the columns. Apparently, (and I don't know if this is why) I didn't set up my State Tax right in settings. On my fulfillment page and Inventory Lab it shows Amazon has collected the tax. Does that mean they also sent it to the proper states? Or no because I didn't have it set up right? I'm So Confused!! THANK YOU!!
If the document only has headers on it then that means you are not selling into any states that Amazon is not collecting and remitting. Try pulling up the combined reports and you should see a lot more information there.
@@LedgerGurus which are the combined reports?
@@henryflores7492 When you generate a report there are three options - information, tax calculation and combined.
Hi, thank you !!!!!!
1)I am an Amazon business seller based in California. All of my inventory are in California. Fulfilled /ship by myself, not FBA. But I do ship my orders from California to these states: Florida, Kansas and Missouri.…Does that mean I have nexus with them? Do I have to add those states in the state tax setting on amazon central?
2) I’m a little confused as I haven't yet set up sales tax collection under seller central's "Tax settings" for Missouri, Florida, or Kansas.I just generated a custom tax remittance form from my seller central account. The csv file was blank….. Does that mean i don't need to do anything? i have nothing to remit?
If you don't keep inventory in Florida or Missouri, then you don't have to worry about paying sales tax there.
Kansas is tricky as they don’t have an economic nexus law. Currently if you sell into the state, you should register. There is an effort to change that, but that's how it stands right now.
We are getting ready to launch a course on all things sales tax For information and updates, go to ledgergurus.com/resources/sales-tax-course-updates/
@@LedgerGurus 🙏 thank you
Hello, I’m a seller in California. I started my FBA business in July. It’s time to report the sale tax. But I did not find any tax information in my account according to your instructions. They are blank. What should I do? Thank you sososo much.
For the sales tax report, it’s empty because Amazon is collecting and remitting in all the states that you sell to. Try downloading the combined report and that should give you all the information. Let us know if that doesn’t work out.
thanks a lot .
I found all the places, whether it’s the combined sales tax or the sales tax report. All of them are block .So when I fill in the sales tax, can I fill everything as 0? Will it conflict with the numbers report by Amazon for me?
Thank you
@@bobsun5587 yep, just file $0 returns, and it won't conflict with Amazon's returns.
Should we need to report those 5 states (delaware oregon etc.) sales tax (they dont contain sales tax)? Because these states are there in the sales tax report and I have not reported that in the last year. Please help me :)
There's nothing to report unless sales tax has been collected. And since those states don't have state sales tax, you don't need to worry about reporting. Now, you may want to pay attention to Alaska because some of the local communities have sales tax. You'll have to see if you're selling into those communities and then change your sales tax settings accordingly. Amazon won't automatically collect from there and they don't automatically remit there either. You're responsible for that. If you have more questions about this, you can schedule a sales tax consultation with our sales tax experts - calendly.com/ledgergurus-sales-tax/?
@@LedgerGurus thank you for the past year collected sales tax is zero for the seller. (In the sales tax report from amazon) I am at least okay for last year I guess but next years I need to be changing settings for Alaska right?
@@jacobtt34 not necessarily. Only if you have economic nexus there. The threshold is $100K in gross sales or 200 transactions.
Thank you so much for the helpful video. I have a question. When I downloaded Sales Tax Calculation Report, I found out that I have nothing in my report. I only have transactions when I download Marketplace Tax Collection Report for some reason. Does it mean that Amazon collected sales tax from customers and filed it on my behalf?
I recently filed my Sales and Use Tax Return to California Department of Tax and Fee Administration and when I was filing, I entered the total of Display Price on the Excel file I downloaded from Amazon Marketplace Tax Collection Report (Column U) and I entered the same total on "Other Nontaxable Sales" section when filing on CDTFA. As a description, I wrote "Amazon" next to the amount. I guess even if Amazon collects taxes and files them on our behalf, we still need to file our Sales and Use Tax Return every quarter but list the total sales amount under "Other Nontaxable Sales" so we report it and we don't have to pay for it again. Is that right?
Yes you are totally right!
@@LedgerGurus thank you so much!!🙌
@@tasadem20 You're very welcome.
Rexin, Amazon charges sales tax to all the customers that buy from me, (all over the country, NC, VA, CA, TX etc..., I can see that in every transaction, and its listed as " Marketplace withheld tax $...... , am I missing something? I have not registered in any state other than the one I registered my business at.
We made a mistake in a previous answer to one of your questions, but went back and fixed our reply. That should answer this question.
Hi, I love your videos, thank you. I have a doubt, when I open Tax Document Library, I can not see any IRS Forms (1099K), do you think it is because I have an LLC? And also, when I download the "For remittance" documents, they download completely empty, do you have any idea why it happens? I have texted and called Amazon many times, and they don't even understand what I need :( Thank you very much.
I’m not sure why you can’t see any 1099K. What’s your tax entity type? Are you an LLC taxed as a sole proprietorship? For the sales tax report, it’s empty because Amazon is collecting and remitting in all the states that you sell to. Try downloading the combined report and that should give you all the information. Let us know if that doesn’t work out.
@@LedgerGurus Thank you very much. I have a Partnership LLC (we are two people on it). I tried the combination report, I got the Information only report but it doesn't work to do the sales tax. The For remittance reports are the ones I can not get, they download empty, do you have any idea why it happens? Thank you.
@@imagoadvertising426 It’s empty because “for remittance” means sales tax you are responsible for remitting. Since amazon is collecting and remitting for you you don’t have any sales that are you responsible for and that’s why it’s empty. You should be able to find the information on the combined report. Why did it not work to file sales tax?
@@LedgerGurus Thank you very much for the information :)
@@imagoadvertising426 You are very welcome. :)
hi there you mentioned that amazon collected sales tax in those 47 states and what if on out 47 we have 13 sales tax id do we need to add the sales tax Id in the amazon ?
Amazon collects in 42 states currently. All 45 states that have sales tax except FL KS and MO. For the 42 states that amazon is collecting there’s no place to add your tax ID.
One more thing, we at LedgerGurus are in the process of creating a course for online sellers to teach them how to register, file, and remit sales tax. We want to make sure that we are providing exactly what online sellers need and are looking for. Would you be interested in giving us a few minutes of your time so we can ask you some questions. If so, please click this link to schedule a time - calendly.com/kelleybirrell. Thank you!
Please help, this report not shown invoice no. How to find this information
Hi, thank you for so helpful video. I have a doubt about Washington. I registered on the State of Washington to collect the B&O Tax. But, Amazon has been not able to inform me where I have to add this information on the Tax Setting section, so how can I ask Amazon to collect the B&O Tax on the State of Washington for me to be able to submit them?? Thank you.
Amazon doesn’t collect and file B&O tax. If you are physically located in WA, you need to register and file a return to remit B&O tax, unfortunately.
@@LedgerGurus Thank you very much for your reply :) Do you know how can I ask Amazon to collect the B&O Tax on the State of Washington?
Amazon won’t. They don’t have an obligation to do that until Washington requires Amazon to collect B&O tax. The current marketplace facilitator law only covers sales tax. It’s a cost of doing business in WA, it’s like income tax. You don’t collect it from anyone, it’s a tax you need to pay for the privilege of doing business in WA.
@@LedgerGurus Ok 👍 Thank you very much for your assistance 🥰
@@pamelalilianaperezdigaeta2546 You are very welcome.
is it abnormal that my total tax (column X) and total tax collected by amazon (column y) are both 0 i just wanna make sure im doing it correctly before submitting. thanks
Which report did you download? I would download the combined report instead of the other two.
@@LedgerGurus nice i found it, one more thing, so for every state ive shipped to, am i to file for that state as well? cause man thats a lot lol and i think id rather pay someone for now
@@Primedesert amazon is collecting and remitting for you so I wouldn’t worry about it!
How did you unlock the drop down menus in excel?
Do you mean how do you set up dropdown menus in each column? This is such a useful trick!
- Highlight the entire column by double-clicking on the top box (with the letter in it).
- Click on the *Data* menu at the top, and then click on *Data Validation* in the *Data Tools* section.
- On the *Settings* tab under *Allow*, click on *List.*
- That'll pop up another box called *Source*. List your dropdown choices in that box, separated with a comma.
- Once you click *OK*, your column boxes should be good to go.
Okay so I downloaded combined and I can see all the information but Does anyone know why my excel does not have options to filter by states? like she has dropdown options>>?
You have to create a pivot table to get excel to filter by states. Kexin talks about how to do it in this video - ruclips.net/video/RWZHnD0AEwo/видео.html. I've got it cued up to exactly where she starts talking about it.
help please! how can I pull my sales tax report on orders where my Tax Calculation Settings weren't set? I know I would still owe those particular states money. I didn't have my settings input for the first month or two of my selling
Which states are you worried about? You should be able to pull the combined report and filter for “seller” under “responsible party” to see the sales Amazon is not responsible for.
@@LedgerGurus i feel like I had sales in FL and Kansas before the marketplace facilitator laws went into effect. But nothing shows when I filter for seller. Because the specific products I sold there were nontaxable, maybe? I don't know what to make of it
@@tevinlofton1446 If you're brand-new to selling, you probably don't need to worry about it because it's unlikely you had physical nexus in those states yet (unless one of them is your home state or you had inventory stored in one of them) and they didn't have economic nexus laws in place yet.
Im having problems when tried to download the reports, every time comes in blank. any idea why?
If the tax calculation report is blank that might mean you don’t have sales into the states amazon is not collecting for. Try downloading the combined report instead.
what if i have been an amazon seller for 5 months i did all the things you explained on the video but on the exel page on all the months there is nothing on it. what is going on? I have sold things..so,at least something should be there
Try downloading the combined report or the marketplace report instead of the tax calculation report. It’s very likely that all your sales went to states where Amazon is in charge of collecting and remitting sales tax.
Rexin, I think I am going to get crazy with this sales tax; Amazon is required by law to collect and remit sales tax lets say in California for sales I make there (my business is not registered in CA), but you are saying that if I don't reach the economic threshold for me to be able to register there ( and all the other states) and turn the setting on, Amazon won't remit that tax to Ca? am I understanding correctly? what does Amazon do with all that $? hold it for me until I am required and turn it on? I hope your head is not spinning like mine, Lol!
Amazon will not start collecting for a state until you turn on the setting, which you'll do after you register in that state.
What if we don't have any sales tax account yet? and we already sold some of our products?
Hi Chubby, first you should not collect sales tax from customers in states where you have not registered for a sales tax permit. In states where you determine you have nexus (for help with understanding nexus, watch this video: ruclips.net/video/_WHEq2T530I/видео.html) you will want to register, collect (if Amazon isn't collecting in that state, or collect on other sales channels you are selling on) and remit (again, if Amazon isn't collecting and remitting in a state, or if you have other sales channels). If you are still struggling to know what to do, you can schedule a sales tax consultation here: calendly.com/ledgergurus-sales-tax/1-hour-sales-tax-consultation
In addition to our last comment, if you have already sold product that you were liable for sales tax on, you can also go back and pay sales tax out of pocket after registering with the necessary state(s). Or you can take on the risk of unpaid sales tax and the associated penalty fees that states could come after you with.
On my sales tax calculation report there is nothing it's empty. I have sold stuff on states that Amazon don't do. Why is that.
Have you tried downloading the combined report to double check if Amazon is collecting in those states?
My account has none of these reports and no generate button. Oh Gawd
Are you logged into your seller central account in the US?
Hi Kexin, thank you so much for all your help. I am still confused with filling sales tax. If Amazon is collecting and remitting the sales tax for basically all states except 3, do I still have to find where I have nexus? either physical or economic? Please clarify.
I think I answered this on your other question. Let me know if you still need clarification.
Great Info Thank you....How do you seperate nys taxes from other taxes out of state if that makes sense. Our tax man needs nys sales tax info dont know how to seperate it...
Hi, since Amazon collects sales tax for New York, you'll need to download the combined report instead of the tax calculation report. Then you can add a filter to the spreadsheet and filter the "state" column for just NY.
I am sorry I've been misspelling your name the whole time Kexin.
LOL! Thanks! :-)