Amazon requesting tax code when listing...

[adam34996]

Tried to list some items today in the electronics category.

Amazon is requiring me to select a tax code from the drop down before listing. Anyone else experience this?

Also - how do you guys deal with state sales tax. My guess is less then 5% of my sales take place in my state, but I am not sure how to record sales tax.

[mercurial333]

Same here, just tried to list right now. I just put A_GEN_NOTAX.


Almost never have sales in my own state.

[jeffweico]

I was also wondering about this. I never received any notifications from Amazon about this change. How are people supposed to deal with it if they don't inform us?

[Gamefreak]

Dont even know what those damn codes mean. I put the most obvious come. COMP something cant remember. Seems to be related to computers.

[KingRay]

maaaaan guys, sorry to bust your #$@%@ but this is what I always talk about. If you are going to be a business this is basic stuff you should already be aware of and ahead of. This isnt new stuff by any means.

This is why I always say people that just sell and collect money are simply "Hustlers" for lack of better words. Nothing else. Short term make money when you can.. Thats not how any successful business works.

Anyway, This is a very good reason why someone should always be in contact with a tax pro. This stuff isnt Amazon or PP's problem, its yours.

[jeffweico]

Wait a sec... This is about Amazon collecting SALES TAXES. Sales taxes are different in each state, each county in each state and sometimes even each city in each county in each state.

Amazon has come up with some categories, such as Health & Beauty, Food, etc. Then there is a cetgory called GENERAL.

How the hell am I supposed to know as a seller which exact category is correct? Before you label me a hustler, you might take into account that there is NO current agreement on how to collect sales taxes on a nationwide basis, nor is it required by law. This is something that Amazon is doing - most likely to prepare for the future.

I pay sales taxes on items shipped within my home state, as I am required to do by law. NO LAW requires me to collect for any out of state jurisdictions. And until there IS an actual law, there are NO ATTORNEYS who are experts on this.

This has NOTHING TO DO with paying income taxes. It has everything to do with how Amazon must collect taxes in states where they have facilities or affiliates. But this is NOT LAW, it is AMAZON'S SYSTEM.

So, YES, IT IS AMAZON'S PROBLEM!

[incniu]

After the buyer paid the tax, who will get the tax money for the moment? seller or amazon?

[jeffweico]

There is an article about this on Auctionbytes.com - unfortunately, it does not shed much light. Amazon has not released any information about this. For those of you interested, here is the link:

Amazon Tests International Surcharge and New Tax Codes Appear

Inciniu brings up an interesting question. There are several that come to mind.

If the tex is passed on to us as sellers, do WE have to fill out paperwork with the over 7,500 different taxing jurisdictions to file monthly reports and remit funds, or will this be handled by Amazon?

Who is the party LEGALLY responsible for the tax money? The seller or Amazon? It matters, because if we sell on a third party website like Amazon or eBay and they go bankrupt, are WE still on the hook for the taxes?

What do the classifications cover? Many are abbreviations and when it comes to being in compliance with tax law, GUESSING just does not cut it.

WHEN does this take affect?

If customers give negative feedback as they did not expect to be taxed, will if affect my seller rating?

Is there a web page on Amazon or an email address I can refer customers to that will answer their questions?

There are too many more, I could go on and on...

[Gamefreak]

Saw that article but if you search amazon forums they have a very good discussion going on there about this and links to the information you need and how to proceed.

[adam34996]

Anyway, This is a very good reason why someone should always be in contact with a tax pro. This stuff isnt Amazon or PP's problem, its yours.

King Ray you must be an accountant or have some motivation for encouraging people to seek them out. 90% of your posts encourage people to contact a tax pro.

I am all for having access to a professional - but this big thing called THE INTERNET is here so you can do more things on your own. Bounce ideas off the forums/google and you can usually make an educated decision.

My attorney wanted $675 to set up my LLC. After checking IRS.GOV and a few websites - I filled out 2 pieces of paper and used a postage stamp and did exactly what he was going to do for $150.

People can always seek out a professional, but the forums are here for people who have knowledge they are willing to share - not suggesting to go somewhere else.

[KingRay]

Originally Posted by jeffweico

Wait a sec... This is about Amazon collecting SALES TAXES. Sales taxes are different in each state, each county in each state and sometimes even each city in each county in each state.

Amazon has come up with some categories, such as Health & Beauty, Food, etc. Then there is a cetgory called GENERAL.

How the hell am I supposed to know as a seller which exact category is correct? Before you label me a hustler, you might take into account that there is NO current agreement on how to collect sales taxes on a nationwide basis, nor is it required by law. This is something that Amazon is doing - most likely to prepare for the future.

I pay sales taxes on items shipped within my home state, as I am required to do by law. NO LAW requires me to collect for any out of state jurisdictions. And until there IS an actual law, there are NO ATTORNEYS who are experts on this.

This has NOTHING TO DO with paying income taxes. It has everything to do with how Amazon must collect taxes in states where they have facilities or affiliates. But this is NOT LAW, it is AMAZON'S SYSTEM.

So, YES, IT IS AMAZON'S PROBLEM!

Relax, Not even talking about your situation. The question was "what do I do about sales tax" because he didnt know what to do about it. In that sense yes you should know all there is to know about how to pay that.

Go back and read his last paragraph, That is what I was commenting on. Has nothing to do with income tax or amazon. Just about that question.

[KingRay]

Originally Posted by adam34996

Anyway, This is a very good reason why someone should always be in contact with a tax pro. This stuff isnt Amazon or PP's problem, its yours.

King Ray you must be an accountant or have some motivation for encouraging people to seek them out. 90% of your posts encourage people to contact a tax pro.

I am all for having access to a professional - but this big thing called THE INTERNET is here so you can do more things on your own. Bounce ideas off the forums/google and you can usually make an educated decision.

My attorney wanted $675 to set up my LLC. After checking IRS.GOV and a few websites - I filled out 2 pieces of paper and used a postage stamp and did exactly what he was going to do for $150.

People can always seek out a professional, but the forums are here for people who have knowledge they are willing to share - not suggesting to go somewhere else.

Adam, I see you must atleast read my posts. In no way does this forum condone tax advice, I say what should be said and that is seek advice from a tax "pro". that is the way the forum is and we all have to deal with it. I didnt make the rules.

As for the internet being your savior, more power to you. I do the same thing BUT to just do what people tell you which in most cases are full of crap then be my guest. Most of these sites you speak of are not doing a free website for their health. Is for our business.

No one said never use those websites that help. what I say is dont think that they get you wher eyou are good to go. there is always state fees,etc that they have nothing to do with which are still involved.

Glad you did a 2 page mail in LLC. I am sure that will get you far. Never heard of that but dont care to argue about it.

People are encouraged to help each other on this site as I AM for sure. I dont sit here and type this crap out all night EVERY night is seems just for my health. I do it to help out in a field I know much about. If you dont like it or for some reason dont like how I post the info then go read someone elses posts. It doesnt mean anything to me. believe me....

The ONLY time I ever tell people to get professional advice is when its needed. IN the case of your Little LLC then you do need advice, You seem to think that all of this talk is simple obtaining the LLC and then you are golden. lol.. You dont read the posts in detail enough to understand. Being in business is more than just doing what you think is involved. You will learn, you will just have to learn from your mistakes if you wont listen to people that are trying to help you avoid those mistakes. Good luck.

GB, Chime in on this Professional tax advice stuff..

[GreenBean]

Originally Posted by jeffweico

I was also wondering about this. I never received any notifications from Amazon about this change. How are people supposed to deal with it if they don't inform us?

And since when did this forum take the place of a tax professional for such a matter as sales tax?

Yes, I read your retort. Despite the number of replies, little info came to hand as to the specifics of these codes and the paying of sales tax.

I double checked what the forum is about.

Nowhere did I read we got a promotion to tax professionals to satisfy users who can 'google' and share internet knowledge. Or in many cases a lack of knowledge suggests that it may be pertinent for users to seek help from professionals who do taxes daily.

Not unreasonable to again suggest that sources OTHER than this forum be consulted for sellers who have sales tax.

.

With taxes, with the legal necessity to pay them, the expertize to do so successfully, is not the duty of the forum to do anything but guide users to taking PROFESSIONAL help.
That's business. That's today's message.

Forum does not have the definitve answer to amazon's sales tax requirements. Ask your tax professional.