Amazon fullfillment service- Nexus

[kathyc2]

Anyone have experience with this???

And, more importantly, can you point me to a one-stop site to determine potential liability for client rather than poking around individual states sites?

Thanks

[geekgirldany]

I worked with a remote client on Amazon fulfillment a few years ago. I remember that TaxJar is where I got most of my information in regards to Amazon and nexus. I can not find it right now but there is a article that goes in depth about collecting sales tax and Amazon.

https://blog.taxjar.com/?s=amazon+nexus

Another good article:

https://blog.taxjar.com/states-where-amazon-com-collects-sales-tax/

[kathyc2]

I had ran across taxjar and suggested client use it or something like it for sales tax collection and reporting.

I was hoping there might be a site where someone had put together all the state Nexus criteria for income tax purposes for a pass-through.

[Snaggletooth]

2010 Tennessee Deal

Amazon was looking to scour the country finding states whereby they could avoid charging sales tax. In 2010, they found such a state in Tennessee. The governor and legislature proudly announced a deal where Amazon was by state law exempt from having to charge sales tax, in return for three such "fulfillment centers" which would employ at least 15,000 people.

After the deal went into effect, other retailers in the state cried "foul" as their selling price was automatically out of competition with nearly 10% sales tax rate. But the law was already in place, and was supposed to stay in place for 40 more years.

The saga continued, but with Amazon sending consumers annual statements of how much sales tax was avoided, along with an encouraging statement that the consumers really owed that much money to the State of Tennessee, and should be paid.

Consumers were enraged. They knew that if Amazon could report this amount to them, it was certain they would be furnishing the same information to the State. Pressure came from all sources and Amazon voluntarily succumbed to billing the sales tax, although they were exempt from doing so by state law.

States are redefining nexus everywhere. I don't know how their definitions would stand up to the Supreme Court decision but they are winning in most cases.

[kathyc2]

I was actually more concerned with the various states income tax filing requirements.

I told them they will need to move to a firm that was someone that keeps up with the various states requirements. Since this client has been on the cusp of being let go for a couple of years, having a reason such as this to let them go works well for me. Since this client had the nerve to question MY fees, I'm chuckling a bit as to how much they are likely going to be paying. Karma.