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States Will Begin Taxing Amazon FBA Fees

Content overview: Certain states will start charging taxes on top of Amazon seller fees and fulfillment costs, though which ones is currently unknown. Amazon states that they are not increasing seller fees. Sellers are already in an uproar over the news, seeing it as “unconstitutional” and “double-taxation.” Certain states will start taxing Amazon fees. If you’re a seller on Amazon, or if you logged into Seller Central today, no doubt you came across the following from Seller Central: “Starting June 1, 2019, some states will consider specific Selling on Amazon fees such as per item, order, and refund fees as a taxable electronic service. Similarly, some states will consider FBA inventory prep fees such as bubble wrap, polybag, taping, and labels as taxable. Seller fees [are] not increasing, however; you may see tax applied to some seller fees. Tax collected will reflect with the order fee on the transaction details of your Payments Reports. Date range payment reports will continue to reflect the sum of fees per order.” Additional information about states taxing Amazon fees: This letter was sent out to sellers, letting them know about the upcoming taxation: Dear Seller, We are reaching out regarding the possible tax implications … Read More

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