Sales and Use Tax
Hello Everyone,
I am kind of stuck here while trying to find out if I need to pay sales and use tax or not. There is different information available and also my accountant has provided me with some information regarding whether to file sales and use tax or not but I would like to consult the Amazon community here for a more precise answer.
I was told by my accountant that if I am selling on Amazon I do not have to report any sales as Amazon does that on my behalf.
But there is conflicting information and according to that, I need to file it.
Can anyone please guide me on whether I need to file it or not? By filing I mean do I have to put in 0 sales or report the sales?
Regards
Sales and Use Tax
Hello Everyone,
I am kind of stuck here while trying to find out if I need to pay sales and use tax or not. There is different information available and also my accountant has provided me with some information regarding whether to file sales and use tax or not but I would like to consult the Amazon community here for a more precise answer.
I was told by my accountant that if I am selling on Amazon I do not have to report any sales as Amazon does that on my behalf.
But there is conflicting information and according to that, I need to file it.
Can anyone please guide me on whether I need to file it or not? By filing I mean do I have to put in 0 sales or report the sales?
Regards
Seller_nRFmxiQg4EGrw
It will depend on your state. Your accountant is correct to the point that you do not need to REMIT any sales tax, as Amazon collects and remits for all sales on the platform.
However, many states still require you to file your sales; the particulars vary from state to state. Some have a line for 'Tax already paid" or similar; others, such as NJ, you have to report the full amount on line 1, then line 2 is the amount of sales not subject to tax, and then the total zeroes out.
You've consulted an accountant; if they are a CPA, and willing to take the liability if they give you bad advice, then I suspect they may be correct for your state. But if you have any doubts, you may want to check directly with your state.
6 replies
Seller_nRFmxiQg4EGrw
It will depend on your state. Your accountant is correct to the point that you do not need to REMIT any sales tax, as Amazon collects and remits for all sales on the platform.
However, many states still require you to file your sales; the particulars vary from state to state. Some have a line for 'Tax already paid" or similar; others, such as NJ, you have to report the full amount on line 1, then line 2 is the amount of sales not subject to tax, and then the total zeroes out.
You've consulted an accountant; if they are a CPA, and willing to take the liability if they give you bad advice, then I suspect they may be correct for your state. But if you have any doubts, you may want to check directly with your state.
Seller_nRFmxiQg4EGrw
I'm going off a vague memory here; I think in NJ, it's a warning the first time you don't file, then something like a $50 fine the first time after that you don't; increases every cycle you fail to report.
In NC, 18 months of reporting no sales resulted in license being canceled (note that's not the same as "no tax due"; I simply no longer did business there). I imagine that would be the minimum if you failed to report at all.
Seller_BcfaFOD0WZsi4
Thank you all for the helpful information you have provided.
