How to Setup State Tax Collection on Amazon Seller Central | Summary and Q&A

TL;DR

Learn how to apply tax settings in Amazon Seller Central, including automatic tax collection in certain states and setting up Nexus in other states.

Key Insights

• 🚕 Most states now require Amazon to collect tax on their behalf.
• 🚕 Amazon Seller Central allows for easy setup of tax settings, including automatic tax collection in certain states.
• 👂 Nexus can be established in individual states that are not on the automatic collection list.
• 🚕 It is recommended to consult with tax experts to determine Nexus requirements.
• 🉐 Custom tax rates can be filled in for specific products to potentially gain a pricing advantage.
• 🐕‍🦺 A variety of services, including advertising and trademark registration, are available for Amazon sellers.
• 🪡 Sellers can contact My Amazon Guy for consulting needs related to Amazon seller central.

Transcript

hi my name is Steven and I'm the founder of my Amazon guy in this video I'm going to be talking about taxes and seller central how to apply your tax settings within solar central if you need any consulting help go over to my Amazon guy comp and contact us alright so when you first go to this section if you haven't been here in a while you go to set... Read More

Questions & Answers

Q: How does Amazon handle tax collection for most states?

Amazon now automatically collects tax on behalf of around 25 states, eliminating the need for sellers to input their state tax IDs.

Q: What should you do if your state is not on the automatic tax collection list?

If your state is not listed, you can set up Nexus by clicking "add state," inputting the necessary tax information, and assigning custom tax rules.

Q: Should sellers consult with tax experts before setting up Nexus?

It is recommended to consult with a tax expert, such as a CPA, to determine if Nexus is necessary and in which state it should be established.

Q: How can sellers benefit from filling in a specific tax rate?

If your product has a different tax rate than your competitors, filling in that rate can give you a pricing advantage and potentially increase sales.

Summary & Key Takeaways

• Amazon now requires tax collection on behalf of most states, with around 25 states automatically collecting tax.

• If your state is on the automatic tax collection list, you don't need to input your state tax ID.

• To set up Nexus in a state not on the automatic tax collection list, click "add state," fill in the necessary tax information, and assign custom tax rules.