Trump vs. Amazon Tax War: How to Win as a Third-Party Seller
President Trump continues to go after Amazon for several issues including paying its share of taxes. Those taxes include sales taxes. Amazon, since April 1, 2017 has been collecting and remitting sales tax in all 45 states on the sales of its own products. This does NOT include third-party sellers on Amazon, except for those sellers in the states of Washington and Pennsylvania. Amazon has over 800K or so third-party sellers on their platform and most use their FBA (fulfilled by Amazon) services. Over the last two years, as more and more sellers have become better educated (and tax professionals) they are slowly getting into compliance with sales tax as a third -party seller. The majority of their third-party seller still believe or are hoping, it is Amazon’s responsibility to collect and remit, not theirs. Unfortunately, that is not the case at the moment. The pressure by President Trump is likely to lead to overall compliance to speed up against all online sellers. This may result in several changes over the next year, some may or may not be in favor of the third-party seller.
Sales Tax Compliance, Especially for Foreign Amazon.com FBA Sellers will Continue to Heat Up
Here is a quote in a press release from April 11, 2018, on this subject from our CEO, Scott Letourneau:
“As the Amazon vs Trump battle heads up with sales tax, this an opportunity for both U.S. and foreign Amazon.com FBA sellers to learn how to quickly get into compliance with sales tax,” said Scott Letourneau, founder and CEO of Sales Tax System. “It won’t take long for the facts to come to Presidents Trump’s desk for him to realize that although Amazon collects sales tax in 45 states, most of their third-party sellers don’t collect and remit sales tax, especially foreign sellers. It is likely, President Trump will follow suit with the UK government to apply pressure on Amazon to force sales tax compliance for third-party sellers, especially the Chinese sellers.”
This was followed up with our announcement to host an upcoming training to address the issues, concerns and how best for a third-party seller to navigate the changes that are likely to come, and how to get into compliance with current regulations.
Will Amazon.com Be Pressured to Suspend Your Account Similar to What has Happened to UK Sellers in Regards to VAT?
Our press release continued…
In uncertain times, for sellers, as the battle between Amazon and President Trump heats up, Sales Tax System is providing a new training to help Amazon FBA third-party sellers with certainty around sales tax compliance, especially for foreign sellers – including their new sales tax calculator tool to help determine your past sales tax, penalties, interest owed, plus how much you would save in each state by coming forward to file a voluntary disclosure agreement with each state.
“In the end, it is very likely the U.S. government will follow suit with the U.K. government and force Amazon sellers using FBA to be registered for sales tax or suspend their Amazon account. The good news is that this will level the playing field for the sellers that are in compliance with sales tax vs the large majority (including Chinese sellers) who are not,” said Letourneau.
Stay Informed with Sales Tax Compliance as You Build Your Brand on Amazon with our Special Event April 24th. Learn More Here
To learn more and register for this timely training, “Trump Vs Amazon Tax War: How to Win as a Third-Party Seller,” go to this link now.