Amazon recently issued an important notice that due to a change in local tax laws, starting July 1, it will begin to calculate and collect sales tax on FBA orders in Florida and Kansas. Americas sales tax has now spread to more than 45 statAmazon recently issued an important notice that due to a change in local tax laws, starting July 1, it will begin to calculate and collect sales tax on FBA orders in Florida and Kansas.
America's sales tax has now spread to more than 45 states, with five remaining states negotiating or implementing new tax laws. It appears that the Commerce Department previously projected that sales tax compliance for the nation's e-commerce marketplace would be completed on time by the end of 2021.
That means the cost of the sales tax is already almost entirely covered by the operation of sellers in the United States. Moreover, Amazon is relatively silent on the calculation and payment of sales tax, and there is no reminder of the orders that generate taxes. So some sellers who don't have a fine handle on costs may not be aware of the tax.
Sellers can see some sales tax information when they click on specific order details or in the date-range report, and when they calculate profits using the range report, they can also see the sales tax deduction.
When it is shown in the order details or transaction details that the tax mode is "Mall Service" and the responsible party for the tax is "Amazon Services", it means that the order has been automatically withheld from Amazon sales tax. (The specific state sales tax rate can be added to me to get the tax map: Kuajingzheg2) However, not all orders sent to taxable states are subject to tax, I am going to review the US consumption tax collection conditions with you.
Conditions for collection of U.S. consumption tax
Only orders that meet the tax conditions will be automatically calculated and paid by Amazon. The tax conditions vary from state to state, but they can be basically divided into the following three situations. The way we Amazon sellers are likely to generate taxes is through remote selling. There are detailed sales thresholds that vary from state to state, but let me give you two examples.
The District of Columbia and Nevada, for example, have policies that require a sales tax on cumulative annual sales of more than $10W or 200 sales to the district, with the threshold roughly the same in each state.
Must be the United States this year to complete the overall to the ecommerce business impose consumption tax, and this is just the beginning, the U.S. government said in the latest ecommerce stimulus plan, is only the first gun of the comprehensive tax ecommerce consumption tax, will put more traditional trade tax rolled out into the field of the ecommerce, the ecommerce sector tax distribution more reasonable.
After the GST is fully implemented, states will move on to the next tax that extends to e-commerce, and we will be faced with successive rounds of cost increases that will make it increasingly difficult to play the game of limiting profit or even losing money.