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Brittany

Brittany

2 years ago

This is such a big deal. Thank you for conducting this interview and Paul, thank you for providing an interpretation of the law that actually makes sense rather than what has been the accepted version thus far! You are helping so many sellers and small businesses that might end up loosing everything if this doesn’t become the new stance on sales tax within amazon’s marketplace. I will do everything I can to share your thoughts and reasoning with the right people. Thank you.

Paul Rafelson

Paul Rafelson

2 years ago

Thank you, I appreciate your support.

Mike

Mike

2 years ago

At last, someone on the same page as me.
I have been saying that it is Amazon’s responsibility all along.
Apart from anything else they are the ones “in control” of all the details about to whom and to where the goods are shipped.
Therefore they are clearly the best placed to both collect and disburse any Sales Tax.

Paul Rafelson

Paul Rafelson

2 years ago

Of course it is. Unfortunately, nobody in the media seems to get that states are actually politically placating to Amazon.

This whole thing is political. States don’t want to be anti-Amazon right now.

Whatever you or anyone reading this can do to help shine a light on this situation would be helpful. I’ll talk to anyone who can get our story out there.

Peter Botherway

Peter Botherway

2 years ago

What amazes me on this entire issue is that it could all be so easily simplified, by getting the credit card companies to calculate and collect the sales tax electronically.

All it would require is a simple program to calculate the tax based on the location of the purchaser making the purchase and then paying and sending the respective States their tax directly.

This way only a few credit card companies are involved instead of a bureaucratic nightmare dealing with millions of online sellers.

Is this too easy?

Bob Lormor

Bob Lormor

2 years ago

Hi Paul, Thanks for doing this interview. You have cleared things up a lot for why Amazon should be the one collecting sales tax. I started selling on Amazon in 2014, and am a small seller, maybe $10,000 – $20,000/yr total. I got scared into collecting sales tax from my nexus states shortly after I got started by reading stuff from organizations like TaxJar and Avalara, who of course profit from scaring us into collecting tax. (except that as a kind of “up yours” I do all of my own tax computations b/c I don’t make enough money to pay them to do it). Anyway, I’m up to about a dozen states that I now file with (pain in the butt!), but there are a couple I’ve procrastinated with where I’ve established nexus over the past year. I’d like to stop adding states b/c the administrative burden is becoming overwhelming. 2 Questions: 1) Is the fact that I’m already filing sales and use tax returns with a dozen states make me more of a target for other states who I establish nexus with over time (but ignore going forward and just stick with paying my current states)? Should I use… Read more »

Paul Rafelson

Paul Rafelson

2 years ago

I’m not sure it matters as much that you are registered when states are going after customer lists, as I predicted at the beginning of this. States have the right to share information, so it’s anyone’s guess as to how they may go about pursuing sellers whether via a list from Amazon, or some other information sharing right, or even sharing the Amazon list. It’s also not clear on what scale the are interested in going after sellers, I was told by the MTC the states would be adhering to a threshold, but they refused to make an official statement because the didn’t want to discourage anyone from joining. Not really sure I buy the logic. De-Registering from a state is always a huge pain, and states don’t want to let you go. However, if we get that big win through either legal and/or political channels, in that case it may not be so bad since the states are basically being told they have to let you go. Although, that depends on whether we win the issue of sellers not being on the hook for income or other taxes, or just sales tax. To answer some of your questions at… Read more »

Pat

Pat

2 years ago

Awesome interview Paul! I recently started collecting sales tax in California due to fear mongering of Taxjar and other sites. My sales have dramatically declined since I did so. A lot of my sales happen in California and charging sales tax is putting me and a huge disadvantage and if I continue to do so I think I will have to stop doing business. (I was crushing it before I did this) Can I close out my California account, refund the sales tax, or just pay what i collected and close it out. Thanks. If you have more to say about this and think you could help I would be more than happy to pay $500. Thanks again Paul for the great interview.

Brad Levinson

Brad Levinson

2 years ago

If I am located in Dallas, Texas and use FBA to sell on Amazon; should I have Amazon collect the sales tax so that I can remit that sales tax to the State of Texas? Or, as Paul discussed in the video, does Paul believe this is a tax collection and remittance burden for Amazon itself even though I have nexus from my offices being located in Texas.

Paul Rafelson

Paul Rafelson

2 years ago

For Sales and Use tax purposes, I have said from the start that I believe the seller’s nexus is irrelevant for purposes of your Amazon sales. This is because, as I understand the general facts, Amazon is the retailer/vendor, and we know that Amazon has nexus in Texas (rhymes). Therefore, using Texas as an example, consider Walmart and Dell. Both Walmart and Dell have nexus in Texas (Texas via its HQ in Round Rock and Walmart via its physical stores). However, just because Dell also has nexus in Texas doesn’t mean Dell is required to collect sales tax on Dell PCs sold inside a Walmart. That would be silly, and that’s not the law. Your having to collect on your Texas Amazon sales just because you also have nexus in Texas, to me, is the same legal absurdity as Texas telling Dell, they are responsible for collecting sales made inside the Walmart. Again, totally nonsensical, and it’s not the law. That said, if you have other website sales, you may have a collection burden in Texas for those sales, but still, not Amazon. I’m not telling you what you should do, other than if you have questions talk to an… Read more »

Nick Henry

Nick Henry

2 years ago

I am not getting this analogy. Coke isn’t selling cokes at Walmart. Walmart is buying coke from Coke and then selling it in their stores.

Nick Henry

Nick Henry

2 years ago

Just to explain further, if you are selling stuff at a market, you have to pay taxes on the things you sell. The market isn’t paying the taxes for you.

FBA Seller

FBA Seller

2 years ago

If that analogy doesn’t do it for you, then just look at consignment.

Jenn

Jenn

2 years ago

Donation made! Thanks for your insight Paul. A friend of mine started a Change.org petition 6 months ago and it’s finally starting to take off. Please remove the link if it’s not appropriate but we are trying to reach 1,000 signatures. https://www.change.org/p/require-amazon-to-collect-and-remit-sales-tax-for-all-fba-sales

Giannis

Giannis

2 years ago

How about international sellers doing FBA? I know the general idea is that the FBA stock in each fulfillment center is considered nexus but do we have a “bigger break” than US companies?

Thank you for your this interview, it’s nice to know someone is fighting this since we have no control of where our FBA stock is warehoused or in how many states.

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