- It's intimidating,
it's overwhelming,
and it can be massively confusing,
sales tax.
As an online seller or business owner,
you need to know about it.
And today I will help you
understand how it works,
set it up correctly,
and get a system in place
for Amazon FBA sales tax collection,
so you can run your
business with confidence.
First of all, let me
establish what sales tax is
and what it is not.
What is sales tax?
Sales tax is when state
and local governments
collect on the sale of a retail product
from business to customer.
The charge is a percentage
of the price of the product,
and sometimes there's going to be tax
on the shipping as well.
Now, you've experienced this
more times than you
probably want to even know
in a brick and mortar retail store.
You go to Target,
you purchase a new cat hammock
for your favorite feline,
and even though the retail price is $20,
you're going to pay an additional
amount on that product.
You see, the store collects it from you
and then pays that sales
tax to the government,
or remits it to the government
who then uses it to fund
schools, roads, fire departments,
and tons of other things.
If you're from Europe,
you know this as VAT,
V-A-T, value added tax.
In the US we call it sales tax
and/or sometimes use tax.
So, how is sales tax
different from income tax?
Income tax is when you pay a
percentage of your net income
to the government.
But sales tax
is when the buyer pays a
percentage of the retail sale
to the government.
Do I have to pay sales tax
when I purchased products to sell?
And the answer is no.
You do not have to pay sales tax
when you buy from a manufacturer.
Second, you don't have to pay sales tax
when buying from Walmart or
Target to resell on Amazon.
Pro tip.
Register for tax exemption status
with retail companies like Walmart,
so you can do Amazon arbitrage
without the hassle of paying sales tax,
which is also going to
enrich your profits.
So, how does sales tax work?
So, you're the business.
How do you know what to collect
and where to send the money?
I'm going to give you several steps.
Step one.
You register in states
where you are required
to collect sales tax.
Step two.
You collect sales tax when
customers buy your products.
And step three,
you're going to file report for your sales
to the relevant states
and remit that sales tax to each state.
Now get this,
not only does every state
have different sales tax rates
and laws,
but so do local governments too,
like the city, the County, the township.
So, how can I possibly
keep up on the tax laws
for 11,000 tax jurisdictions?
Well, the good news is you don't have to,
but if you were dead serious
about building and scaling a business
that makes you a ton of money,
you need at least to understand
some basic principles,
and then you'll know exactly
what to do in any situation
without having to learn over
11,000 tax jurisdictions
across the great US survey.
Now, before I show you
exactly how to set yourself
and your business up for success,
you may be thinking,
"Why can't I just ignore sales tax?
Is anyone really going to
come after someone like me?"
Yes.
Local governments can and
will absolutely ruin you
if you fail to pay.
I know a guy
who started his own lawn care
product company in Nevada.
He grew his business incredibly fast,
selling all across the US
and a lot in California.
He was supposed to collect
sales tax from customers,
but he didn't.
Even though he operated out of Nevada,
- [Mailman] You got mail.
- California took notice.
Three years in,
he gets a letter from the
California Franchise Tax Board.
He opens it
and to his horror,
not only did he owe tens of thousands
in fines and back taxes,
but he did not have any
collected sales tax to remit.
He now had to pay it all himself.
He couldn't exactly go back
to his customers and say,
"Hey, I failed to collect
sales tax from you,
so pay up now."
And as a result, his business tipped.
(fire exploding)
But I don't want that to happen to you.
To protect my business,
what do I need to
understand about sales tax?
First.
Sales tax is determined
at the state, county,
and city level,
not the federal international level.
Sales tax is collected
on these multiple levels,
state, county, and city.
So, when you combine all these rates
for local and state tax,
this is called the combined rate.
Now, each of the 50 states
and each non-state US
territory like DC, for example,
wrote up their own set of sales tax rules
independently from one another.
The five states that will never
collect sales tax from you,
unless something changes
are Alaska, Delaware, Montana,
New Hampshire and Oregon.
Even though Alaska has sales tax,
they do not have it on a state level.
Therefore it's not relevant to you
unless you are in Alaska
selling to Alaskan customers.
Arbitrage Amazon sellers
like to buy products
from these five sales tax-free states
before reselling the products,
because this saves them a lot of money,
and of course it increases
their profit margins.
Now, people love to hate
on taxes and I get it,
but we need them in one form or another.
One of my favorite things to do
is take my wife on rollerblading dates.
Next to our house is this paved trail
that goes from miles to
this beautiful nature park
of creeks and birds and greenery.
Well, who keeps that trail paved?
Who keeps the trash picked up?
Services paid with sales tax.
Second.
Sales tax can vary from
product to product.
So, cities will often tax some goods
like restaurant meals at a higher rate,
and then other goods like
clothing at a lower rate.
Some cities also collect
tax for other things
like purpose districts
and what is called Transit Authority Tax.
Austin does this.
So, for example,
take a look at the combined
tax rate for Austin, Texas.
El Paso, Texas, however,
collect sales tax at a
combined rate of 7.25%.
All of sales tax for states
was initially set up before the internet,
and before online entrepreneurial-ism
like Amazon private label,
before it even existed.
And then it became the
opportunity it is today,
increasing the number of remote sellers.
So, what is a remote seller?
You, the online seller are
classified as a remote seller,
when you are someone whose
business is located in one state,
but you're shipping products
to customers in another state.
Just like that lawn care
seller who's located in Nevada,
but he was selling in California.
He is a remote seller.
Remote sellers only have
to collect sales tax,
when you have nexus in the state
where the product is received.
In other words, where
the customer's located.
Nexus is just a fancy word
for presence in a state.
And there are two kinds of nexus,
there's physical and there's economic.
So, you can have a physical
presence in a state
and also have an economic
presence in a state.
So, what is physical nexus?
If you have an employee, a
contractor, or a warehouse,
then you have physical nexus in that state
where they're located.
If your products, for example,
are stored in an Amazon
Fulfillment Center in that state,
that also counts as physical nexus.
For example, if your
business is located in Texas,
then you have physical nexus in Texas.
I can't help it always
makes me think of this song.
♪ All my ex's are in Texas. (laughs) ♪
So, when you sell products
to Texas customers,
you must collect sales tax
at the Texas combined rate,
on where the product is received.
But now let's change the scenario.
Let's say you have a
satellite office in Ohio.
So, that means you have physical
nexus in the state of Ohio.
So, when you ship products
to customers in Ohio,
you must pay the Ohio combined tax.
And to be clear,
it's technically the customers who pay it,
you collect it and then you remit it.
You pay it to the state of Ohio.
Now, let's change it up again.
Let's say you have an employee in Alabama,
even though your primary
operation is in Texas.
When you sell products
to customers in Alabama,
you must collect sales tax
from your Alabama customers
because you have physical
nexus in the state of Alabama.
Now, let's say you have a
contractor, not an employee,
cause there's a big difference,
but a contractor in Rhode Island.
Even though your business
is located in Texas,
now, you have physical
nexus in Rhode Island.
What if the contractor in Rhode Island
worked for you just one week of the year?
If she worked for you at
least two days in the year,
you have physical nexus in
the state of Rhode Island
for that entire year.
Okay, wait, Seth,
what if my products
are stored at an Amazon
Fulfillment Center in California?
Well, then you have physical nexus
in the state of California.
Now, keep in mind,
if your company is registered
in Delaware, for example,
where your business is registered,
does not by default, give
you nexus in that state.
You need to actually have
operations, or employees,
or contractors, or fulfillment
centers in that state
to qualify for physical nexus.
So, when does physical nexus
obligate me then for sales tax?
If you have physical nexus in a state,
when you ship products to
customers in that state,
you have to collect
taxes from the customer
and remit it to the state
where the product was shipped.
Now, I'm going to break this down
so that by the end of this training,
you're going to fully understand
exactly what to do for your business.
Here comes the big question.
We understand what physical nexus is,
but what is economic nexus economic nexus?
Economic nexus means,
you reached a minimum
threshold of annual sales
in that state.
Economic nexus is typically
measured by your sales revenue
and number of transactions,
whichever threshold you reach first.
As of today, 28 of the 50
states require sales tax
when you reach 100,000 or 200
transactions in that state.
For example, in the state of Arkansas,
if you reach $100,000
dollars in sales per year
of products shipped to Arkansas,
or 200 transactions in that year
of product shipped to Arkansas,
we're not talking about
sales in other states,
just that state,
you qualify for economic nexus
in the state of Arkansas.
But how are you supposed
to keep track of all this,
when you do Amazon FBA
sales tax collection?
Well, we created a tool for you
that you were going to love.
It breaks down the physical
and economic nexus requirements
for every single state,
as well as whether they are destination
or origin-based for online sellers,
which I'll get to in a minute,
with links to their state revenue sites,
where you can register
for sales tax, if needed.
I'm going to show you
how to get to this tool
by the end of this video.
So, what does this look
like in all practicality
for your Amazon FBA business?
Well, let's say you're selling a product
for $50 a piece on Amazon.
When that product has shipped 200 times
within 12 months to customers in Ohio,
you have now reached economic
nexus for the state of Ohio,
which means you have to start collecting
and remitting sales tax.
Assuming you were shipping
an equal number of products
to all states every year,
your annual revenue would
be at 500,000 a year
before you owed sales
tax to the state of Ohio.
Now, we preach all the time
about choosing products
with high sales prices.
This is just another example
why selling products at a higher price
actually works in your favor.
If you were selling your
product for only $15,
all things considered equal.
As soon as you reach
$150,000 in annual sales,
you are now obligated to
collect and remit sales tax
for the state of Ohio.
In other words, using our example,
when selling a product
for $50 instead of 15,
you get to make 350,000 more a year
before having to collect
sales tax in a state
where you do not have physical nexus.
When are remote sellers
required to collect sales tax?
When you have physical or economic nexus
in the state to which you
are shipping your product to.
You get a Bobby McGee in Rhode Island,
but you're shipping
the product to Arizona.
You're going to collect sales
tax at the Arizona state,
even though Bobby McGee purchased it.
It's where the product is received,
is where you collect and remit sales tax.
So, with over 11,000 tax
jurisdictions in the US,
how do I ensure I am
collecting at the correct rate
for every sale?
First, you don't have to
know every tax jurisdiction.
I'll refer you to software
that can automate that for you.
All you need to do is
understand how it works.
Now, what I'm about to share
is probably the most difficult
part of the training.
Do not feel overwhelmed.
Stay to the end,
and I will not only unpack
it for you step by step,
but I'm going to show you resources
to get all of this automated.
Every state is either
origin or destination-based.
Destination-based means you
are collecting sales tax
at the tax rate of the location,
where the product is shipping
to, where it is received.
But origin-based means
you are collecting tax
at the tax rate of the location
from which the product was shipped from.
Texas is origin-based.
So, if you ran a coffee
shop in Austin, Texas,
but you shipped coffee beans to a customer
in El Paso, Texas,
you would charge sales tax
at the rate of your location in Austin,
not at the tax rate of El Paso,
because Texas is an origin-based state.
Now, let's change it up.
Now, let's say the shop
is set up in Akron, Ohio,
Ohio is a destination-based state.
So, if you ship coffee beans
to a customer in Columbus, Ohio,
you will collect sales tax
at the rate in Columbus,
not Akron.
It's important to understand
these rules were created
long before there was such
a thing as online selling.
Amazon sales tax wasn't a thing
because Amazon FBA wasn't a thing.
In fact, they were created for businesses
selling to customers
within their own state.
So, now, let's apply this
on a state-to-state level.
When shipping from one
state to another state,
you only collect sales tax
at the rate of the state
your product ships to,
assuming you have nexus,
physical or economic,
in that ship-to state.
But what if,
I ship a product from an origin-based
to a destination-based state?
For example,
let's say you're shipping from Arizona,
which is origin-based
to Ohio, which is destination-based.
If you have nexus in Ohio,
then you collect tax based on the tax rate
of the location in Ohio,
where your product ships to.
Even though you have nexus in Arizona,
because your business
is located in Arizona,
you do not have to collect
any sales tax for Arizona.
However,
what if I ship a product
from a destination-based
to an origin-based state?
Here's where it gets interesting.
Let's say you are shipping
a product from Ohio,
destination-based
to Arizona, origin-based.
Well, if you have nexus in Arizona,
then you're only going
to collect tax based
on the tax rate of the
location in Arizona,
where your product ships from, in Arizona,
such as an Amazon Fulfillment Center.
Notice, how it does not matter
if the state you are located in
is destination or origin-based.
You only collect sales
tax based on the tax rate
and laws of the state
where you are shipping your product to.
When does origin-based versus
destination-based matter?
Well, when you ship a product
to a customer in the same state
from which the product was shipped,
and that state is origin-based.
Let me give you an example.
If your product ships from a
warehouse in Phoenix, Arizona,
to a customer in Flagstaff, Arizona,
do you collect sales
tax at the Phoenix rate,
or the Flagstaff rate?
Well, because Arizona is origin-based,
you collect sales at the Phoenix rate,
because that is where your
product is shipped from.
If hypothetically,
Arizona were destination-based,
then you would collect
tax at the Flagstaff rate,
since Flagstaff is the destination
of what your product is shipped to.
Remember,
you only have to think
about sales tax in a state
where your product ships to in a state.
Now, there's another reality,
it's important to grasp.
This is where it gets
really funny. (chuckles)
Some states switch from
origin-based to destination-based
for remote sellers.
For example, Texas, where I live.
I gave you an earlier example
using Texas as an origin-based
state, but get this.
You run your business
from Nashville, Tennessee,
but you sell to a customer
in a different state.
Now, we've already established
that you do not need to consider
where your business is located
when selling out of state
in regards to sales tax.
So, you're in Nashville
and your product ships
from a fulfillment center
in Houston, Texas,
to a customer in Mount Pleasant, Texas.
Do you collect sales tax
at the rate of Houston,
where the product is shipping from,
or Mount Pleasant, where
the product is shipping to?
Mount Pleasant.
Why?
Because Texas is one of the nine states
who switched from origin
to destination-based
for remote sellers.
I'm going to show you
where you can get United
States Sales Tax Cheat Sheet
at the end of this video,
that gives you a full
breakdown of all these details,
so you can understand it at a glance.
Because Texas is destination-based
for remote sellers,
you collect sales tax at the
rate of Mount Pleasant, Texas,
the destination of the product.
Now, what if hypothetically,
Texas was origin-based for remote sellers,
just like it is for in-state sellers?
Then, you would collect tax
at the rate of Houston, Texas,
because that is the location
from which the product is shipped.
Now, imagine having to
figure that all out,
not just for 45 states,
but all 11,000 sales tax
jurisdictions in the entire US.
Good news.
(funky tone)
You don't have to know
every single sales tax rate.
Today, I will show you exactly
how to conquer this beast.
But I will only show you
what you need to know
and then show you how to
keep it simple and scalable,
so you can focus on growing your business
and not lose sleep wondering
if you paid the correct sales tax.
Now, please note, I am not
a tax attorney or a CPA.
The same team that does
Robert Kiyosaki's taxes
does my taxes.
So, I do know what I'm talking about
but, if you want specific
advice on any tax law,
make sure you consult with
a tax attorney or CPA.
Four steps to conquering sales tax.
Here we go.
Step one.
Determine which states you have physical
and/or economic nexus in.
If either of the following are true,
you must collect sales tax.
Number one, when you have
physical nexus in the state.
In other words,
when your business, or
employees, or products,
are physically present in that state.
Number two,
when you have economic
nexus in that state.
In other words,
when you reach a minimum
amount of annual sales
in that state.
Remember, Alaska, Delaware,
Montana, New Hampshire, Oregon,
they do not collect state sales tax.
Even if you have nexus in these states,
you do not need to collect
sales tax for these states.
To keep it simple,
whether or not the state
is destination-based
or origin based.
If you qualify for physical
or an economic nexus
in the state where your
customer received the product,
and the state is a sales
tax-collecting state,
then you must collect
taxes for the purchase
and remit, pay, that tax amount
to the state where the
product was received.
Physical nexus.
For which states are any
of the following true?
I run my business in the state.
I have a satellite office in the state.
I have an employee or a contractor
who worked a minimum of two
days of the year in that state.
I have a warehouse in the state.
I have products stored
in an Amazon Fulfillment
Center in that state.
For any state
where one of the answers
to the question was, yes,
you have physical nexus in that state.
Important note.
If you registered your
business in a different state,
that alone does not mean you
have nexus in that state.
For example, let's say
you live in New York
where you run your Amazon
business from your laptop,
but your LLC was registered in Wyoming
because they have 0%
corporate and income tax.
You do not have physical
nexus in the state of Wyoming.
In other words,
you only have to collect
sales tax for Wyoming,
if you reach the economic
nexus sales threshold
for that state,
which by the year is 100,000 per year
and/or hundred transactions.
Here's how to find out which
Amazon Fulfillment Centers
your products are stored in.
From Seller Central, click
on Reports, then Fulfillment.
On the left side, under Inventory,
click Show more, so you
can see all the options.
Then you're going to select
Inventory Event Detail.
You will now see two tabs,
View Online and Download.
Select Download,
For the event date,
select a time period that covers the date
you shipped your products to
Amazon's Fulfillment Centers,
then select Request.csv Download.
The View Online option
is difficult to read,
which is why we're using this option.
Within a couple minutes,
a download button will
appear on the right side.
From here, download the file
and open it in a spreadsheet
software like Numbers or Excel.
Go to the fulfillment-center-id
column in the spreadsheet.
This shows you a list of the
Amazon Fulfillment Centers,
where your products are located.
Each code is actually an airport code.
For example, CAE is the
Columbia Metropolitan Airport.
DFW is the Dallas Fort Worth Airport.
Economic nexus.
What is your sales and transaction volume?
For most states,
if you have 100,000 in annual
sales or 200 transactions
for products shipped
to that state annually,
you've reached economic status.
At the end of this video,
I'm going to show you
how to get a cheat sheet
so you can see the economic
nexus for every single state.
Step two.
Register as a seller
in the states where you
have physical nexus.
Now, here's a few tips to
register as a seller in states.
Google: "register for sales and use tax
and then put in name of state."
Set up your sales and use tax
by filling out the online form.
You will need your business name,
your business address, an EIN number,
a phone number and email.
Now, only register for the states
you have physical nexus in.
Do not worry about economic nexus
until your sales are
high enough to qualify.
Step number three.
Set up sales tax collection
in Seller Central.
Amazon says this to its customers.
"The tax rate applied to your order
will be the combined state and local rates
of the address where your
order is delivered to
or fulfilled from."
Amazon collects and remits taxes
for the vast majority of the 45 states
who require sales tax,
which is a huge help to us.
There was a day where
they did not do this.
But which states
do I need to set up for
sales tax collection
in Seller Central?
In the states where you have nexus
and Amazon is not collecting
and remitting sales tax for you.
Amazon collects and remits
or pay sales tax to almost
all of the 45 sales tax-collecting states.
You do not have to do anything
in your Seller Central
account for these states.
However, currently,
there are a few states
Amazon does not yet collect
and remit sales tax for.
Florida, Kansas, Missouri and Tennessee.
And by the time you see this video,
that may have already been
changed, which is good news.
Keep in mind, this may change soon
when Amazon collects and remit sales tax
for all states that require sales tax.
If you have nexus in any state
for which Amazon is not collecting
and remitting sales tax,
you must not only register
with each state for sales tax,
as well as the ones
where they are collecting
that you have nexus,
but set up sales tax
collection in Seller Central
for these states.
I'm going to show you
exactly how to do this.
How to set up sales tax
collection in Seller Central.
From your Amazon account
in Seller Central,
I'm going to show you how to set up Amazon
to collect and remit, in
other words, pay sales tax
for states that they are not
automatically doing this for.
Now, as I said, the
vast majority of states,
this is already happening for,
but you're still going to need
to set up the ones
where you have nexus in.
So, here's what you do.
First, you're going to go to Settings
and you're going to go
down to Tax Settings,
which is going to take you
to this page right here.
Now, let's just say you have
nexus in the state of Florida.
See all these states right here?
These are the ones that
Amazon is already collecting
and remitting tax for you.
That's why some states are missing.
Either they are the states that
do not currently collect sales tax,
or, it's simply a state
that they're not collecting sales tax for.
So, if I go over here and
I just type in Florida,
watch what happens,
As you can see, it doesn't exist.
So, I'm going to come
over here to Add States,
and from here, I will type in Florida.
There it is.
I select the box and
hit Add Selected State.
Now, you can see Florida right here
and notice this is a white
bar because I'm editing it.
From here, you need to put in
your state tax registration number.
Now, keep in mind, for every state,
you have to file with the state first.
You have to set up a
sales and use tax account
in order to receive that
tax registration number.
For each state, it's going
to be a unique number.
And they don't all call it a
state tax registration number,
so do keep that in mind as well.
Make sure county, city and
district, are all selected
because you do need to have
Amazon paying those taxes for you.
Always select Gift Wrap to be safe,
and you only need to
select Shipping & Handling,
if that state requires
sales tax collection
for the shipping cost.
In other words,
if the product sells for $100 dollars,
and there was a shipping
cost involved of 10,
they're only going to
collect sales tax on 100,
unless you select this.
If you select this,
they will collect the
sales tax rate for Florida
on the cost of the product,
as well as the shipping and handling.
Now, we have a United
States Sales Tax Cheat Sheet
that you can use as well,
which is super convenient.
And I'll include it in a link below,
so you can understand which states do
collect sales tax for shipping
and which ones do not.
Now, that you've done that,
I do not recommend you
assign a custom tax rate.
Because this means you're
going to have to stick
on top of the tax rate at all times
and tax rates change a lot every year,
sometimes every quarter.
So, I would not touch that one.
If you made a mistake,
you can come over here and remove Florida
if you need to, and add it later.
So, now I'm going to go down here
and I'm going to click
this button right here,
where it says A_ GEN_TAX.
Now, keep in mind, for the
vast majority of goods,
you're just going to select A_General_Tax.
All it means is for most
goods, general goods,
Amazon will collect and remit
the correct sales tax amount
for the state, the County,
the city and the district.
And they're going to do that
based on where the product
is being shipped to.
Now, something to keep it.
What, if you have clothing?
Well, in that case or even automotive,
or a baby car seat.
There are a few specific
categories in here
and they're all extremely intuitive.
You don't have to be a genius
to know which one would apply to you.
If you know your product, gonna see it.
For example, eGoods,
they have some unique sales tax rates.
Food is another one.
Health monitors.
So, go through here and see if
your category is not listed.
If it isn't, then just
select A_General_Tax.
Now, keep in mind,
especially for those of
you guys selling clothing.
This is actually a really good example.
If you're selling clothing
right here, A_CLTH_GEN,
this would be for general clothing.
But keep in mind that for some states,
they actually don't collect
sales tax for clothing.
So, in that situation, you
would select A_GEN_NOTAX,
if the state of Florida
did not collect tax
for the sales of clothing.
But again, as I said,
the vast majority of you are
going to select A_GEN_TAX.
If you cannot find your
product category in here,
then you're safe to go with this one.
Once you've done that,
you're going to come down
here and you're going to say,
I've reviewed and accept
the tax methodology
blah-blah-blah terms,
otherwise they won't accept it for you.
And then, from here, you're
going to hit Save Settings.
Once you do that, it is
going to add it for you.
See up here, setting saved.
And now Florida has been added.
In fact, I'm gonna refresh
my page just to show you.
It's been refreshed,
and you can see Florida's here
and it's white because I added it.
All the gray ones,
Amazon already does for you automatically,
but the white ones are the
ones that you have to add.
Again, remember,
you only have to do this
if two things qualify.
Number one.
You have nexus in that state,
whether that's economic or physical nexus.
And number two,
it is a state that is not already included
amongst one of these.
Well, how do I know?
I can go over here, let's
just say California.
I searched, boom, there's California.
Texas, boom, there's Texas, see.
But if I search Kansas, aha!
There is no Kansas.
And so, that's another
one I'll have to add,
once I have nexus in Kansas.
(air whooshing)
Not sure about the state-specific rules
for your product type?
That's why we created the
US Sales Tax Cheat Sheet,
which I'll be sharing at
the end of this video.
Step number four.
File your sales tax report in each state
where you registered.
Now, you have two options for this.
Two sales tax offers we
highly recommend and trust
are TaxJar and Avalara.
Second, you can file online.
Log into your sales tax account,
the same login you
already use to register.
Fill out the form,
make your payment for the
states payment gateway.
Now, let me give you some tips
for filing your sales tax online.
Whether or not Amazon is
remitting the sales tax for you,
you are still required to file the return.
After you do it a couple times,
it takes literally a
few minutes per state,
but make sure you know how regularly
you're required to file.
Most states require monthly or quarterly.
At the end of this video,
I will give you access to
our US Sales Tax Cheat Sheet,
that shows you exactly how
often you're required to file
for every state.
Even if you have no sales for that period,
you still have to file.
For the states for Amazon remits,
in other words, pays the
sales tax on your behalf,
you still have to file,
but you do not have to pay
cause Amazon paid it for you.
And for the states where Amazon
does not remit the tax for you,
you must submit your
payment when you file.
I am not going to walk you
through every single state
for how to file,
as that would use up the rest
of your week and mine too.
However, there are typically
only a handful of states
you need to register with,
and for those that do,
they provide step by step instructions
for how to do this online.
Now, let me give you a checklist
for making sure you are doing
sales tax the right way.
Step one.
Determine which states you have physical
and/or economic nexus in.
Step two.
Register as a seller in the states
where you have physical nexus.
Step three.
Set up sales tax collection
in Seller Central.
And step four,
file your sales tax report in each state
where you registered
and do it at the frequency they require,
whether it's monthly,
quarterly, sometimes annually.
Let me tell you a little
bit about our cheat sheet.
We took a ton of time
to break all 50 states plus
Washington DC, down for you
into our USA Sales Tax Cheat Sheet.
In this tool,
we list the range of sales
tax for remote sellers,
whether there's tax on shipping,
what the economic nexus threshold is,
whether a location is
origin or destination-based
for remote sellers,
how often you're required to file.
If there's an active
marketplace facilitator law
that requires marketplaces such as Amazon
to collect and remit for you,
if sellers need to report when
they haven't met economic nexus,
whether they've joined
something called the
Streamlined Sales and Use Tax Agreement,
as well as links to all the
official state websites.
It is a massive amount of information.
It is an invaluable tool,
and we do have a price
for it, it's very minimal.
It's $17, that's it.
And it's going to be the first link
in the description below,
and I think you're going
to find a ton of value.
- Hi I'm Jay, with the JOD team.
Thank you for watching, like
this video, leave a comment.
Tell us what your favorite
part of the sales tax video was
and tell Seth, that was my part.
Also, get the US Sales Tax Cheat Sheet
right there in the description
and remember to subscribe for
more videos, just like this,
and hit that notification bell.
So, you know, every time one
of these videos comes up.
See you in the next one.
(smooth music)
