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Grow your Amazon business with the best tools for optimizing listings, managing ads, improving your feedback and much more.

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LISTINGS

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Jolly Jack

Jolly Jack

3 years ago

I’m a little confused about this article and would appreciate a little clarification. We are a UK VAT registered business. My understanding is that all sales outside of the EU are outside the scope of tax for my UK business and therefore we would not need to pay any taxes on any sales outside the EU, including sales in the USA. What are peoples opinions??

Sergiy Kyrylkov

Sergiy Kyrylkov

3 years ago

No VAT and sales tax if you ship to the USA from the UK.

Emma Scotton

Emma Scotton

3 years ago

Thanks for your comment.
You’re absolutely right, ordinarily UK VAT registered businesses do not need to be concerned with tax on sales outside of the EU.
However, this very much depends on how your sales are processed and in some circumstances you will be required to do so. When selling to US based consumers you will need to consider whether or not your UK business has ‘nexus’ in any of the US states. ‘Nexus’ can be created in a number of scenarios. For example, if you’re storing your goods in a warehouse in the US, or using a drop-shipper based in the US, this will give you nexus in that state and you will need to charge and account for Sales Tax on sales to consumers in that state. Determining ‘nexus’ can be quite complex, please do get in touch with us at the following link and we’d be happy to talk this through with you.
http://www.knowglobal.com/contact-us/

Richard Meldner

Richard Meldner

3 years ago

This article really puts more fear into smaller sellers than the realities of US tax laws. Most of the sales tax laws and cross-border situations listed only apply to large volume companies that have to establish business entities in a US state. Most of these so called “Amazon” laws are based on the fact that Amazon was skirting various sales tax rules by setting up each warehouse as a separate business entity. Effectively they would sell products from one state to another claiming they were not subject of the sales tax laws as the warehouse that sent the product was not a legal entity in the state of the consumer. They used some other tricks to get around this issue, so some states started to widen the definition of NEXUS to go after the big fishes likes Amazon. Most of these laws have minimum volume requirements before they are even a concern and even US sellers do not worry about FBA inventory locations. Actually if you sell products that are commingled in FBA, how would that work anyway? I’ll invite any sales tax auditor to start chasing boxes around the country in Amazon FBA warehouses in other states in which… Read more »

Sergiy Kyrylkov

Sergiy Kyrylkov

3 years ago

Hi Richard, You’re the first voice of reason on the matter I have ever read. Thank you for sharing your point of view.

William Love

William Love

9 months ago

With the recent ruling by the US Supreme Court will businesses outside of the USA be required to collect, report and pay sales tax?

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