Choose Where to Remit Sales Tax

Once you understand what nexus is, you have to determine where it affects you, and therefore where you need to collect and remit sales tax. Since you’re a Fulfillment by Amazon customer, this can be a fairly simple process but there are still some things to look out for. If you only do business with Amazon, then you should be good to go after reading this guide. If you have employees based in other states, or you regularly travel to other states for work, there’s a very good chance that you have nexus in more than the state 

Where Should I File?

You should file sales tax in states where you have a sales tax obligation, aka nexus. For FBA customers, you have nexus (tax liability) in any state that your product is warehoused in. Generally speaking, this means you’ll have nexus at least in your home state (where you live) and the states your products are warehoused. 

 

So Where are My Products Warehoused?

Good question! Amazon knows sales tax is no-joke, so they’ve made finding your fulfillment centers simple enough.

To find your fulfillment centers in your FBA account:

1. Head to ‘Seller Central,’

2. Download the “Inventory Event Detail” report by clicking here.

3. Open the report in Excel

4. In the report, find the column ‘Fulfillment-Center-ID’

a. This column lists all the fulfillment centers in the country where your products have been stored. The fulfillment centers are listed by the nearest airport code (for example, if you see IND listed, then you know one of the fulfillment centers near Indianapolis are on your list, giving you nexus in Indiana). If you don’t recognize an airport code you can look it up here. To find the exact address of the fulfillment center, use our guide here

5. Celebrate! Now that you know which states your products are located in, and therefore which states you should collect and remit sales tax in.

Note: One thing to keep in mind is that Amazon does have fulfillment centers in Delaware and New Hampshire, which are two of the five states in the country that don’t have sales tax. If you see that your products are being stored in fulfillment centers in these states, you don’t have to worry about collecting sales tax there. (Whoop, Whoop!)

We know, we know. That was a lot of information. If you want to skip the steps above, you can use a great tool called WhereStock to instantly see where your products are located, saving you time to get back to your business.

And don’t be afraid to reach out with questions. We love this kind of stuff, and are here to walk you through it. Give us a ring or shout, and we’ll help you best we can.

Disclaimer: While we know an awful lot about sales tax, we’re not CPAs. To get in-depth advice for your business, check with your CPA, bookkeeper, or attorney after reading this guide to get advice about your specific situation.

Related Resources

Do I Need To Collect Sales Tax for My Amazon Store?

 

Sales tax are difficult to understand. Throw in the complexities that can arise from using Fulfillment by Amazon and now you have yourself a real conundrum. The worst part is that the answers can be incredibly difficult to find and leave you with more questions than when you started. This is why Taxify created the sales tax guide specific to Amazon sellers.

FBA Warehouse Locations Cheat Sheet

 

If you’re using Fulfillment by Amazon (FBA) you need this cheat sheet. Knowing exactly where your products are stored and shipped helps you stay compliant and avoid surprises.

Sales Tax License Template

 

There’s a lot to keep up with when you’re registering for sales tax permits! Filing frequencies, deadlines, and permit numbers vary for each state, which is why we created this handy template for you to keep track of everything.