Tips And Tricks - Sales Tax On Amazon

What Amazon will handle Sales tax collection in the US

Only in the US, Amazon will collect sales tax for you, but you must configure your store to do so:

1. Login to Seller Central.
2. Click Settings > Tax Settings from the dropdown menu.
3. Choose the option: View/Edit your Tax Collection and Shipping & Handling and Giftwrap Tax Obligations Settings.

Keep in mind that Amazon charges 2.9% of each transaction in order to collect US sales tax. The alternative is not to collect sales tax from your Amazon customers and to pay out of your profits. Your provider of taxation services for Amazon Sellers is sure to help you with as many tax deductions as possible.

In the rest of the world, Amazon doesn't collect sales tax and all your prices must be tax-inclusive.

What it won’t handle

No native tax receipts

Though Amazon does let you customize your store’s receipts with your logo and other information, it does not go all the way with tax receipt information. This limitation could be a hassle for you, especially if you sell to a lot of B2B customers.

The easiest way forward would be to use an Amazon extension for automatic tax receipts, offered by a third party. We may be biased, but we think Global FPO’s integration is the perfect solution. :)

No notifications if you’ve surpassed a tax threshold

Amazon doesn’t notify you when your business becomes liable for taxes in a new place. If your sales take off in a certain state or country, and you pass the tax registration threshold there, you probably won’t know it! So you will need to remember the threshold amount in each tax region and manually monitor your sales there.

That’s really a waste of your time. An automated tax alert system would do the trick!

No tax reports to help you file your returns

Amazon doesn’t offer tax reports that include all the accurate information you need to file returns quickly and confidently. When tax season comes around, you have to rifle through your Amazon sales data to get tax information, to total the sales taxes you’ve collected, etc.

If that sounds like a headache, that’s because it usually is… But again, we know of a pretty great solution. Read on to figure out how to simplify your tax returns in one click.

Instant tax notifications & reports on Amazon

Automatic tax receipts sent around the world

With every sale, Global FPO sends a legally compliant tax receipt to your customer automatically. These receipts are 100% customizable to reflect your brand, and they can be sent in multiple languages or currencies.

Notifications when you pass a threshold

Global FPO stays on top of tax thresholds for you. The app monitors your sales in each region and notifies you before you hit the limit, so you can prepare your tax registration. Or, if you make a taxable sale in a brand new country that doesn’t have a threshold, the app will alert you to register for taxes there ASAP.

Instant tax reports

We mean it when we say instant tax reports! With the click of a button, you can have everything you need for filing a tax return, at a glance. Global FPO collects all the necessary information for filing US sales tax, VAT, and GST — and displays it in a way you can actually understand. You can rest easy knowing that these instant tax reports are accurate and up-to-date. Global FPO complies with every little tax rule worldwide, including the United States, Canada, Australia, New Zealand, Singapore, and the EU.

In a nutshell, the Global FPO plug-in will cover the issues that Amazon cannot. In fact, we’ll close the gap and solve all your tax-filing woes, even beyond Amazon.

More than likely, you also use other channels for online selling, right? So you would have to combine the Amazon data with everything you’ve culled from Shopify, PayPal, and others.

The beauty of Global FPO is that once you’re using it with Amazon, you can easily integrate it with these other channels — so that all of your tax information in one place! And all of it can be delivered in an easy tax report, with the click of a button.

Also Read: A Guide to Amazon Seller Bookkeeping

How to integrate Global FPO with your Amazon store

1) Access your Amazon Seller Central account and choose the Authorize new developer option (or its translated equivalent)

2) In the Developer's Name text box, type "Global FPO" and in the Developer Account Number text box, enter one of the following codes:

• For Amazon Europe: 320142770771
• For Amazon North America: 552515817491

3) Click Next and read and accept the license agreement (if you do agree, of course!).

4) Once you click Submit you’ll see all of your relevant details. Take note of them (copy and paste them to a text or Word document, or screenshot them) and you're ready to move forward with the integration.

5) log in to Global FPO and head to the page Integrations > Amazon FBA.

6) Now all you have to do is enter the details you just found for yourself in step 5 on your MWS portal and hit Connect. That's it!

For further assistance and details regarding your taxes, you can trust Global FPO to provide you with top-notch taxation services for Amazon Sellers and tax preparation services in Houston, Virginia, Boston, and most other parts of the U.S.A.

Global FPO? (www.globalfpo.com)? is an? Outsourcing Accounting firm consistently recognized for its exceptional outcomes and? strong work culture,?with 500+ happy and satisfied clients? across.?They provide? everything from straightforward tax return work, or basic bookkeeping, to advanced & complex Financial Statements to CPAs and accounting Firms implementing best industry practices & values. Their Accounting solutions are comprehensive, customized? to a unique business operating model, and use “best-of-breed” technology under a strong two-tier reviewing mechanism ensuring minimum? risk of error.?

Global FPO is a professional outsourcing and consulting organization offering services across the globe including the USA, Canada, UK, Europe, Australia, New Zealand, Japan, Dubai, and the Far East. GFPO experts provide services at competitive prices to our clients in the areas of:

1. Bookkeeping & Controller level services

1. Tax Filing,

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To explore more? on?Global FPO?and?its?online Accounting/ Bookkeeping, Tax Return Preparation, Financial Statements, Accounting Advisory, Payroll? For processing and related Business Services contact us at:?

Phone (USA): +1 (832) 426-2521, +1 (347) 781 5928?or

Email:?contact@globalfpo.com.?