Help me understand sales tax, and sales tax exemptions as a new seller.
I am soon to be a new seller and plan to use Amazon FBA.
I will be purchasing from a Chinese Wholesaler (Alibaba) and plan to sell on the Amazon US Marketplace.
As a new seller is there any requirement/benefit to filling a sales tax exemption? Is it recommended that new sellers wait to file this, until they are established? As I understand this can become quite a messy process very quickly with filing nexuses and such.
Will my Chinese manufacturer charge me sales tax if I do not claim an exemption?
Any recommendations to help me better understand this as a new seller?
Thanks!
Help me understand sales tax, and sales tax exemptions as a new seller.
I am soon to be a new seller and plan to use Amazon FBA.
I will be purchasing from a Chinese Wholesaler (Alibaba) and plan to sell on the Amazon US Marketplace.
As a new seller is there any requirement/benefit to filling a sales tax exemption? Is it recommended that new sellers wait to file this, until they are established? As I understand this can become quite a messy process very quickly with filing nexuses and such.
Will my Chinese manufacturer charge me sales tax if I do not claim an exemption?
Any recommendations to help me better understand this as a new seller?
Thanks!
1 reply
Seller_nRFmxiQg4EGrw
I don't know the answers to all of your questions, as I don't import. But I'll point out that you should have a business license, which should include sales tax exemption (details vary by state). But go ahead and do that; it's FAR easier to get the proper documents before moving forward than it is to update everything down the road.
For the same reason, I suggest getting an EIN for your business, rather than using your SSN, even if you don't plan to have any employees.
