Amazon and the new TAX CODE (State Sales Tax)


Here is the link that discusses the Tax Code:


Configure My Tax Settings:
https://sellercentral.amazon.com/gp/help/help-page.html/ref=ag_23991_cont_scsearch?ie=UTF8&itemID=23991
(This page keeps changing, I suspect Amazon is working on this, as it is new, and maybe their Legal Deptartment is reviewing, so keep checking back)
On the tax rate page, view more details of the rules for each tax code by clicking a link.
For example, if you click the GEN_NO_TAX link, you see the list of conditions for applying this tax rate in a pop-up window:

How our Tax Collection Works:
https://sellercentral.amazon.com/gp/help/help-page.html/ref=ag_200787660_cont_scsearch?ie=UTF8&itemID=200787660

Tax Collection Services Terms
https://sellercentral.amazon.com/gp/help/help-page.html/ref=ag_200787220_cont_scsearch?ie=UTF8&itemID=200787220

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How Our Tax Collection Services Work

Our tax collection services calculate US sales and use taxes for all fifty states and the District of Columbia, and certain related local tax jurisdictions, based on seller-determined collection settings and any related information we request. Our services do not calculate federal, state, or local product-based excise or similar gross receipt taxes (for example, a special fur clothing tax in Minnesota). They do calculate some taxes that are labeled as excise or gross receipt taxes, but that are commonly acknowledged to be sales and use taxes (for example, in New Mexico and Hawaii).

We use a third party system, the Vertex Indirect Tax O Series, to support tax calculations that are part of our tax collection services.

Our services include support for the following tax calculations and related functions:

  • Sales and use tax rates (including periodic updates)
  • Sales and use tax area ID assignment (jurisdiction identification)
  • Sales and use tax jurisdiction determination (sourcing)
  • The ability to select a seller-defined default product tax code
  • The ability to specify a custom rate for each state
  • The ability to specify tax collection obligations for orders at the state, county, city, and district level for each of the 50 states and the District of Columbia
  • Shipping & handling taxability support.
  • Pre-populated product tax codes, such as for clothing, books, food, computers, that allow sellers to designate the taxability of their offers.
  • Item level tax calculation details.

Information about Taxes in Seller Reports

For sellers who use our tax collection services, the following reports will include the tax calculation information for sellers to use in reporting and remitting taxes to the appropriate taxing authorities:

  • Customer Taxes Report (for products shipped using Fulfillment by Amazon)
  • Order Report (for seller-fulfilled products)

Setting up Tax Collection Services

The Tax Settings module (available through the Settings tab in Central Central) enables sellers to review the tax methodology and product tax codes used by our systems, set up their tax collection settings, and provide other information we require in order to provide tax collection services.

    1. On the Settings tab, click Tax Settings.

The Welcome to the Tax Manager page appears.

    1. Click View Tax Calculation Methodology.

The Review the Amazon tax methodology page appears.

    1. After you view the methodology, click Continue.

A list of available product tax codes appears.

    1. On the View product tax codes page; click the link for a product tax code to see taxability and general information about that product tax code. For example, if you click the A_GEN_NOTAX link, you will see the list of conditions that apply when using this code.
    2. To close a tax rules pop-up window, click Close Window.
    3. When you have completed your review, click Continue at the bottom of the Product Tax Codes window.

The Set up your Tax Collection Settings window appears.

    1. The Set up your Tax Collection Settings window gives you the ability to configure the following:
      1. A seller-defined default product tax code
      2. The locations supported by our systems in which you want to collect tax (states, counties, cities, districts)
      3. A custom (override) rate per state (optional)
      4. Your state tax registration numbers
      5. Shipping & handling and gift wrap tax settings
    2. Scroll to the bottom of the window to review the Tax Collection Obligations table.

You can set or clear your obligations here.

    1. Click the acknowledgment below the list of states
    2. At the bottom of the page, click Continue.

You can review your settings one more time.

    1. If you are satisfied with your tax settings, click Continue.

The Confirm your tax collection settings page appears.

    1. After you complete your review, check the three boxes and click Confirm.

Your settings are saved.For more information, see the following resources:

For additional questions about our tax collection services, please contact Seller Support.

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Tax Collection Services Terms

The following terms apply to the tax collection services Amazon makes available to Marketplace Professional sellers and Webstore sellers.

Registration. If you are a Marketplace Professional seller or Webstore seller, you may register for tax collection services by providing to Amazon, in the format and manner we require, collection settings for the jurisdictions for which you wish to collect taxes or other transaction-based charges that we support for your Marketplace Professional or Webstore transactions, and any related information we request.

Collection Services. We will collect sales and use taxes and other transaction-based charges supported by the functionality we make available for Marketplace Professional or Webstore transactions based on your collection settings and any related information we request.

Tax Collection Services Fees. If you use the tax collection services, you will pay us the following fees:

Seller Type Fee
Marketplace Professional 2.9% of all sales and use taxes and other transaction-based charges we collect*
Webstore 2.9% of all sales and use taxes and other transaction-based charges we collect*

*We will not charge tax collection services fees for transactions occurring before February 1, 2012.

We will retain these fees in the event of any refund on related transactions.

Product Tax Codes and Associated Information. We will make available a list of product tax codes and associated product taxability rules. For each of your products, you will provide to us, in the format and manner we require, a reference to one of our product tax codes and any related information we request. If you do not provide a reference to one of our product tax codes for a product, we will not collect any tax amounts for your transactions for that product.

Remittance. We will remit to you the amounts we collect through the tax collection services according to the schedule on which we remit funds for your Marketplace Professional or Webstore transactions. You agree to accept the amounts we remit to you as full satisfaction of our obligations in connection with the tax collection services.

Calculation of Refunds. For products you fulfill, you are responsible for calculating refunds of all taxes and other transaction-based charges collected through the tax collection services, and you will process them using functionality we make available through your seller account. For products we fulfill, we will calculate and process refunds of all taxes and other transaction-based charges collected through the tax collection services, and we will refund amounts related to claimed customer based exemptions only if we receive supporting documentation that meets our requirements.

Your Responsibilities. You are solely responsible for your use of the tax collection services, including for reviewing and determining the correct product tax codes, collection settings and all related information for your products, and for documenting and paying all taxes to the appropriate taxing authorities for your transactions. Amazon disclaims all responsibility for your use of the tax collection services. Except to the extent Amazon makes specific services available to you: (i) Amazon does not calculate or collect any product-based excise taxes or any fees or surcharges; (ii) Amazon does not provide support for sales or use tax exemptions based upon the identity of any individual, corporation or other entity, or the intended use of a product by any individual, corporation or other entity; and (iii) you are solely responsible for any non-U.S. taxes and duties (including their collection and payment).

About FBARocks Bob Willey

My name is Bob Willey and I own Bob's Neat Books & Bob's Neat Stuff & SellerCoaching.com ***** We've been selling on Amazon using FBA since June of 2008, and on Amazon since 2005. We are mostly FBA and we use FBA to sell practically anything! When it comes to selling on Amazon using FBA, we don't discriminate. The only requirement is that the items are profitable! We sell toys, games, books, and media items such as DVDs, CDs, even VHS tapes! We've also been selling on eBay since 1998 with over 11,000 feedbacks (100% Positive)!! Have been an eBay Trading Assistant for over 9 years. Also sell some Media items on eBay. ***** I also provide Seller Coaching services, designed to be one-on-one via Skype video, to target your exact needs, not generalized training, but specifically what YOU need. http://Facebook.com/SellerCoaching ***** I also moderate the YahooGroup FBAForum (see link below): http://finance.groups.yahoo.com/group/FBAForum ***** My background is varied, as I owned a computer consulting business for 28 years, and a Brick-n-mortar Auction House for 5 years with a weekly auction filling a 15,000 sq ft building. Plus I have done over 150 Estate Appraisals. OK, I enjoy STUFF.... ***** http://SellerCoaching.com
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