Amazon collects and remits sales tax in all states with sales tax under marketplace facilitator laws. However, FBA sellers still need to register for sales tax permits in states where they have nexus, file returns (even if Amazon collected), and maintain compliance records.
Yes, Amazon collects and remits sales tax as a marketplace facilitator in all 45 states (plus DC) that have sales tax. This means Amazon handles calculation, collection, and remittance on your behalf for orders placed through the Amazon marketplace.
In most states, yes. Even though Amazon collects and remits, many states still require marketplace sellers to register and file returns showing the tax collected by the marketplace facilitator. Check each state's specific requirements.
FBA inventory stored in Amazon warehouses creates physical nexus in those states. Additionally, economic nexus thresholds (typically $100,000 in sales or 200 transactions) may apply. Check where Amazon stores your inventory using the Inventory Placement Report.
Use Amazon's Inventory Event Detail Report or the FBA Inventory Placement Report to see which fulfillment centers hold your stock. These locations determine where you have physical nexus for sales tax purposes.
Sales tax collected and remitted is not a deductible expense since it's a pass-through to the state. However, sales tax paid on business purchases (supplies, inventory, etc.) may be deductible depending on your state and accounting method.
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