What is the Amazon Tax Collection? Amazon Tax Collection Review

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What's included

Amazon’s selling fees (determined by the state in which the seller sells):

Sales Commission

Subscription Fees

Variable closing costs

Cost per product

Promotional and product sales expenses

Refund Commission

Amazon Checkout

Sales tax collection fees

FBA service fee (based on the order execution center)

Label costs

Multi-bag (tape) fee

Bubble packaging fee

Taping costs

Opaque bagging fees

Repackaging costs

States involved

Connecticut

District of Columbia

Hawaii

south dakota or west virginia

Amazon will not collect sales tax from sellers if their business is located outside of Connecticut, the District of Columbia, Hawaii, South Dakota, or West Virginia.

tax rate

For FBA logistics fees: the tax rate is determined by the FBA logistics center that performs the taxable service

For Amazon platform sales fees: The tax rate calculated is determined by the seller's location in the tax state.

Seller Support Response

Once the new tax policy is implemented, it will be automatically deducted from each affected order, which will appear on each order report. The tax collected will be reflected in the order fee in the transaction details of the seller's payment report. The payment report for the date range will continue to reflect the total of the fee for each order.

Interpretation

Judging from Amazon’s email, the specific tax collection method, tax rate, etc. have not yet been determined. Moreover, there are many states in the United States, and the laws of each state are different. In the end, we need to wait patiently for the policies released by Amazon. However, according to my experience, it is impossible to pay taxes in the United States overnight, so there is no need to worry too much.