Amazon provides a variety of services and programs for sellers, and the taxability of fees depends on the location of your company or the location where Amazon logistics services are provided, as well as the tax rules of each state. The following introduces the taxes that need to be paid on Amazon America.
The taxes that need to be paid on Amazon America are:
1.Federal Corporation Income Tax: The federal government company income tax, the collection rate is 15~35%, and it is reported once a year.
2. State Corporation In come Tax: State corporation income tax, the levy rate is 4.5~12%, and in several states, it is 0%.
3. Local Income Tax: regional corporate income tax.
4.Sales Tax: sales tax, customer payment, social security collection and payment by e-commerce, the collection rate is 5.4~12%, and the collection rate is 0% in several states (for example: OR, DE, NH, MT).
5. Payroll Tax: Payroll tax, deducted from the salary of the employee, collected and paid by the e-commerce company.
6. Busines Privilege Tax: Commercial service right tax, collected by the local government.
Under what circumstances can I not charge SalesTax?
1. If a Chinese Amazon seller delivers FBM from China, it will obviously not constitute a Nexus. Of course, there is no need to collect Sales Tax for any state. If the Chinese seller sets up an overseas warehouse in PA (Pennsylvania) and delivers from this overseas warehouse, the Chinese seller forms a Nexus in PA, and must charge SalesTax to orders (consumers) originating from PA, but there is no need Charge orders (consumers) from other states, because Nexus is not formed in other states.
2. Cross-border e-commerce includes e-commerce in the United Kingdom, which only needs to handle Sales Tax in one or two states that make up Nexus or even no agent (complete delivery from China). If an e-commerce only has Nexus in one state, the e-commerce has 10,000 orders a year, and the average value of each state in 50 states is 200 orders, then only these 200 orders need to be charged SalesTax, and the other 9,800 orders are not required Pay sales tax.
For cross-border e-commerce sellers, especially Amazon sellers, SalesTax is regarded as the most common tax. If SalesTax is not implemented, it is likely to be ignored, and it may need to be paid for many years.