Sales and Use tax
We collect sales tax on everything we sell, but we see that Amazon takes the taxes and pays that out themselves so I heard that we don't have file our sales tax since Amazon is taking care of it, so Is this correct. I got a letter stating I have to pay back taxes now, but since Amazon collect taxes and pays them, do I have to file anything? Even though I don't get the sales tax. In my order information it shows sales tax was collected and minus the tax from my profit. Thanks any help would be appreciated!
4 replies
Seller_Qbd0RsfZFEZBY
Amazon remits the sales tax for any sales made on its marketplace.
Sellers do not have to manage sales tax for there Amazon sales.
You will see the sales tax collected on your 1099 annually and will need to account for it on income taxes.
Seller_Hi7wbO2Kbo6bl
You would not be able to charge sales tax through Amazon, and it would not be legal to do so since Amazon handles it through Marketplace Facilitator.
You may well still have to report that income, then subtract it back out when you file your sales tax report. Check with your state to see how it is handled, and what your reporting responsibilities are.
Seller_nRFmxiQg4EGrw
In most states, even if there is no tax due (whether from no taxable sales, or already paid by Amazon, etc.), you still have to file the actual paperwork.
Details will vary by state, but in general, you will report the sales, then subtract out the sales for which tax is already paid. Your state tax office might be able to help; if not, speak to a tax professional, preferably a CPA.
Seller_mZ0Si1f7DbOUu
In NY you have to show sales that aren't taxable by the state and sales that are taxable. You should check with your state tax place.
