FBA & Registration
Updated: Feb 10
Question: If selling FBA through Amazon and Amazon is collecting sales tax, am I responsible to register for sales tax?
Answer: Depends. The Amazon marketplace is estimated to have over five million sellers. Your question is which the seller must register if Amazon is collecting tax. This is a murky area. Technically, if Amazon is collecting taxes, it is responsible for registering everywhere you sell. However, many sellers use multiple marketplaces in addition to Amazon, such as Etsy. If as a seller you are selling via Amazon and some other marketplaces independent of Amazon, you may be required to register and collect. Moreover, while you may not technically need to register, you may be held liable at the end of the day for uncollected taxes under audit.