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Multistate Tax Issues Multiple state Tax Issues


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Old 08-14-2017, 04:09 PM
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Do I still have Nexus if no more inventory in that state

We are internet toy retailers selling through Amazon FBA. We have not registered for sales tax in some states but did have inventory in those states at one time or another using Amazon FBA. If no more inventory is present in said state, do we still have Nexus? If not, would back taxes be owed during the time period in which the inventory was in that state?



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Old 08-14-2017, 09:58 PM
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Originally Posted by toyguru2017 View Post
We are internet toy retailers selling through Amazon FBA. We have not registered for sales tax in some states but did have inventory in those states at one time or another using Amazon FBA. If no more inventory is present in said state, do we still have Nexus? If not, would back taxes be owed during the time period in which the inventory was in that state?
We are internet toy retailers selling through Amazon FBA. We have not registered for sales tax in some states but did have inventory in those states at one time or another using Amazon FBA. If no more inventory is present in said state, do we still have Nexus? =======>basically,yes aslongas you keep your inventory in the satates; you are an FBA seller. your inventory in warehouses mean you have nexus in other states.Nexus is a word for ?a presence in a state significant enough that you need to collect sales tax in that state.? So,Every state that Amazon sends your inventory to via FBA considers that inventory to be nexusIn other words, if you have a nexus in a state then you are supposed to collect sales tax from customers in that state.
sales tax is a ?transactional tax? and each transaction must be evaluated to determine whether sales tax applies. When determining whether they should charge sales tax on a sale, an online seller must asko you, the seller, have nexus in the state where the item is being sold?Is the item taxable in that state?Has your customer provided a valid exemption certificate for the items purchased?If you?re like many online sellers, you most likely purchase items of inventory from one or more suppliers and then resell that property to your customers. In one common case, you buy an item, keep it in your inventory (either at your physical location or in a warehouse, such as with Amazon FBA sellers) and then turn it over to the buyer when you sell it. Sellers are obligated to charge sales tax on all sales of property unless the item is inherently exempt by law or the purchaser provides an exemption certificate that is valid in the state where the property is sent. The failure of the customer to provide a valid resale or other exemption certificate will require the seller to charge tax on the sale.


If not, would back taxes be owed during the time period in which the inventory was in that state?
=======>>so as mentioned previously, Let?s say,as you said, you sell stuff online using Amazon?s FBA program to fulfill your orders. By sending your inventory to Amazon you?re essentially adding potential nexus to a whole bunch of states. For example, If you?re in Dallas and sell to someone in Ohio and Amazon ships to that person from one of it?s Ohio facilities then you are supposed to collect sales tax from that customer.Also, keep in mind that in US, every state does have it?s own set of sales tax rules, so the above examples are a general set of guidelines. if you have sales tax nexus in a state, then collect sales tax from all customers in that state, no matter what platform you sell on.



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