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Taxes & Bookkeeping & Legal
If you are selling merchandise online, you may be liable for taxes and you may want to keep a good set of accounting books. I am not an attorney or accountant, this information is not authoritative, you should consult with your own accountant or attorney for legal and tax advice.
Sales Tax for Amazon FBA Sellers (Fulfillment by Amazon Sellers) - See Below.
Because of Amazon warehousing requirements, different rules and laws may apply to FBA sellers.
Marketplace Fairness Act

Marketplace Fairness Act News

InternetRetailer 02-26-2016 - Battle lines form again over online sales tax rules.

eCommerceBytes - 01-12-16 - Merchants Sit Idle as State Defies Supreme Court Sales-Tax Ruling.
"It applies to merchants "who had $250,000 or more in retail sales sold into Alabama in the previous year."

eCommerceBytes - 12-17-15 - eBay and Sellers Spared in Congressional Spending Bill.

eCommerceBytes - 10-01-15 - eBay Frames Sales-Tax Bills as Big-Box vs Small Retailers.

eCommerceBytes - 06-16-15 - New Bill Would Require Online Sellers to Collect Sales Tax.

Federal Marketplace Fairness Act of 2015 Legislation Introduced. March 13, 2015.

Midland Paper - 03-12-2015 - Marketplace Fairness Act Introduced in Senate… Again…

eCommerceBytes - 03-12-15 - New Hampshire Senator Vows to Fight Online Sales Tax Bill.

March 2015 UPDATE: The Marketplace Fairness Act is back in the news and has been re-introduced as proposed legislation.

Archived Marketplace Fairness Act information to the bottom of the page.

Tax, Legal & Business News

Tax, Legal & Business News

WebMag - 04-15-2016 - Small Biz Taxes & Spending. Survey results.
National Federation of Independent Business - NFIB Study.
Survey results.

eCommerceBytes - 02-03-16 - Sales Tax Changes 2016: Breaking Down the States, Rates, and Debates.

eCommerceBytes - 12-13-15 - Eight Year-End Tax Tips for Online Sellers.

Business-Opportunities - 04-11-2015 - Little-Known Tax Breaks for Home-Based Businesses.

Market Watch - 02-10-2015 - Do I need to file my taxes?

eCommerceBytes - 12-21-14 - Sellers Guide to Year-End Tax Chores.

eCommerceBytes - 10-19-14 - Help for the Holiday Season: Getting the Workers You Need.
(Employee tax implications.)

eCommerceBytes - 09-17-14 - TaxJar Launches AutoFile, Eliminates Manual Sales Tax Filing.

Website Magazine - 09-08-14 - Square Receives New Integration for Sales Tax Filing Service.

Internet Retailer - 07-17-14 - Amazon’s new California warehouse fulfills its state tax deal.

eCommerceBytes - 07-01-14 - Online Sales Taxes? One Seller Says Let PayPal and Visa Collect Them.

eCommerceBytes - 06-23-14 - Mr. Smith Goes to Washington, Etsy Style. - Etsy just released a guide called, "A Call to Action: Five Proposals to Support the Emerging Maker Economy."

European Tax News

European News - Mentioned for those people doing business with other countries. EU - European Union.

eCommerceBytes - 02-10-15 - Etsy Expands VAT Tax Collection.

eCommerceBytes - 01-07-15 - EU Sellers Must Pay VAT Tax on eBay Fees.

Revenue - 01-01-15 - VAT MOSS - TBE Services 2015.

ProBlogger - 12-24-14 - Selling eBooks and Digital Products on Your Blog? You Need to Know About EU VAT-MOSS.

TechCrunch - 11-25-14 - EU’s New #VATMOSS Rules Could Create A #VATMESS For Startups.

About State Taxes - Income & Sales Tax

Taxes - State

Most states have either sales tax or income tax and most have both types of taxes. As an online seller you may need to collect sales tax and/or pay state income tax on your sells.

Most ecommerce sites, like Amazon, PayPal, and eBay provide sellers with sales data information to help you with your selling income and sales tax information. You may be able to import this data to a spread set or bookkeeping software. I am not a tax accountant or attorney, you should verify this information with a professional.

At this writing:

eBay - On your eBay page, under your eBay ID, there are several tabs, one is marked "Account". Under Account is your Account Summary and Sales Reports.

PayPal - On your PayPal page there is a two row navigation bar, in the second row is "History". Under History there are Download History, Tax Documents, and Reports. Also on the second row is "Summary" reports, at this writing, these only go back 3 months.

State Sales Tax

Sales Tax

Scroll down this page for Multi-State Tax Services.

Most, but not all, states have a sales tax, and as a retail seller, you may be responsible to collect and pay your state's sales tax at least for items sold to buyers in your state. The ecommerce sites that I know of, like eBay, have sales tax calculators included in the payment process, and from my experience it just requires the seller setting up the payment calculator with the seller's information, which is usually just a simple click of a button indicating which state(s) the seller is required to collect sales tax for or entering the seller's tax rate.

Most small sellers may only need to collect sales tax in their home state, but you should verify your states requirements and Supreme Court rulings and Federal Laws. Larger companies may have to collect sales tax for multiple states, collecting sales tax in multiple states is often required if the company has a physical presence "nexus" such as an office, store, or warehouse in other states. There is a legislative movement to require online sellers to collect sales tax in all states, Marketplace Fairness Act, but this may only effect large sellers; for now that is another subject. I am not a tax accountant or attorney, you should verify this information with a professional and review current information with local, state and ferderal governements.

Here is a sales tax help and example:
eBay - Using a tax table/Setting up a tax table.
eBay - Setting up a tax table.

Amazon - Tax Collection Services Terms.
Amazon - Tax Policies.

eCommerceBytes - 04-23-2014 - Shoppers Scale Back when Amazon Collects Sales Tax.

Taxes - Info, Books & Articles
Collecting & Paying Sales Tax - Info, Books & Articles
Laws can and do change, be sure to check official government sites for current info.

Sales Tax for Amazon FBA Sellers (Fulfillment by Amazon Sellers) - See Below.
Because of Amazon warehousing requirements, different rules and laws may apply.

About.com - Do I Charge Sales Tax or Not? Origin-based and Destination-based Sales Tax Rules.

Amazon - About Sales Tax on Items Sold by Amazon.com
Amazon - About Sales Tax on Items Sold by Sellers on Amazon.com

Avalara - Free Guides:
Sales and Use Tax Compliance for Dummies.
Sales Tax and the Internet Merchant.
Sales Tax Implications of Drop Shipping.

Avalara - White Papers Collection.
FBA Seller's Guide to Sales Tax.
10 Sales Tax Tips - Sales Tax Implications of Drop Shipping - Affiliate Nexus and the Out-of-State Seller - 5 Sales and Use Tax Tips - More.

Avalara Webinar Details - Drop Shipping – Who’s on the Hook for Sales Tax.
Recorded Webinar: One amazing hour! Cost: Nothing

Bizz Venue - Ecommerce Taxation: A 21st Century Problem.

Facebook Group - Sales Tax for eCommerce Sellers.

FBA Rocks - 08-27-14 - Guest Post from TaxJar Find a Human in every State to talk to about Sales Tax.
Lists states and phone numbers.

Forbes - 12-03-2013 - Supreme Court Opens Door To Sales Tax Collection By Online Sellers.

IRS - Tax Tips for Online Auction Sellers.
Address difference between online garage sales and becoming a business, and more.

Outright - Your Online Seller's Tax Guide.

Sales Tax Institute - Sales Tax Frequently Asked Questions (FAQ)

SBA - An Analysis of Internet Sales Taxation and the Small Seller Exemption.

SBA.gov - Collecting Sales Tax Online. Read: "When to Collect Sales Tax Online." Quote: If your business has a physical presence in a state, such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers. If you do not have a presence in a particular state, you are not required to collect sales taxes.

SBA.gov - Register Your Business Name.

Small Biz Trends - Does Your Business Need a DBA?
Good article. Example: Quote: "For sole proprietors, filing a DBA is required to open a bank account and receive payment in the name of your business."

Business-Opportunities.Biz 2015 - Top Accounting Apps for Small Businesses Owners.

TaxJar - Free eBook - Everything you need to know about Amazon, FBA, and sales tax. Also they have a list of States' Sales Tax Deadlines for Online Sellers.

Website Magazine - 12 Sales Tax Tips For Small Business Owners.
Website Magazine - 50 States. 50 Sales Tax Rules. 100% Frustrating.

Supreme Court Case - Sales Tax

The subject of this Supreme Court Case is the collection or non-collection of sales tax from sales in states where a company has no physical presence. Quill is in Delaware. North Dakota is the state.

Quill is a Delaware corporation with offices and warehouses in Illinois, California, and Georgia. None of its employees work or reside in North Dakota and its ownership of tangible property in that State is either insignificant or nonexistent.

Cornell University Law School - Supreme Court Case - 1992 - Quill Corp. v. North Dakota (91-0194), 504 U.S. 298 (1992) - QUILL CORPORATION, PETITIONER v. NORTH DAKOTA by and through its TAX COMMISSIONER, HEIDI HEITKAMP - on writ of certiorari to the supreme court of north dakota [May 26, 1992] - Justice Stevens delivered the opinion of the Court.

From Cat Addicts
and Cat Addicts on Facebook

Taxes - Federal

Taxes - Federal

From my understanding, selling online as a business is income and as such may need to be reported as income on your Federal Income Taxes. From my understanding, the IRS is now requiring online payment services to give IRS their sellers' information for those sellers who sell $20,000 or 200 items with the 1099-K form. I am not a tax accountant or attorney, you should verify this information with a professional.

Market Watch - 02-10-2015 - Do I need to file my taxes?
Federal Income Taxes. Many people starting out selling online have low income as a start up, this article shares the income threshold required to file federal taxes.

US Government Federal IRS Forms

Amazon - IRS Reporting Regulations on Third-Party Payment Transactions.

eCommerceBytes - PayPal Sheds More Light on 1099-K Tax Reporting
eCommerceBytes - IRS Casts a Wide Net With New 1099-K Reporting Rules
eCommerceBytes - Amazon Sellers Can Now View IRS Tax Form 1099K
eCommerceBytes - Sellers Go Looking for New Tax Form 1099K on Amazon and PayPal

eCommerceBytes - 10-07-11 - Payment Providers Lowballing IRS Thresholds for 1099-K Reporting.
eCommerceBytes - 10-03-11
- Small eBay and Amazon Sellers Getting Screwed by New Tax Law.

Finance - Bookkeeping & Tax Services

Finance - Bookkeeping - Taxes Services - Information & Products

FullTimeFBA -12-23-2014 - How to Run “End of the Year” Inventory & Sales Reports for Tax Purposes. (Amazon)

eCommerceBytes 09-18-12 - Kabbage Funding News - Financing Small Merchants Is Big Business

eCommerceBytes - Using Outright to Organize Your Online Sales for Tax Time

GoDaddy.com Automate your tax prep with bookkeeping at GoDaddy.com

Bill.com - The leading digital business payments company creating magically simple A/P and A/R solutions. We are uniquely positioned at the center of business payments, uniting banks, accountants, and businesses on the fastest growing payments network.

GoDaddy - Bookkeeping offers the ability to link your Amazon Seller Central account. Under "Email & Office".

FreshBooks - Cloud Accounting.

Harvest - Serves time tracking and billing needs.

Kabbage - Funding for eBay Sellers! - Kabbage offers funding for eBay sellers. Get the money you need to grow your store today.

Sage - Pay, get paid, and manage your money faster and easier. We work for every business type in every industry, from retail to healthcare. We even manage payments, including in your accounting or ERP software, too.

Taxjar - And WooCommerce (WordPress Plugin) - TaxJar eliminates the need for you to even think about sales tax with your Woocommerce store. This powerful extension calculates how much sales tax should be collected at checkout. Then we update your sales tax collected by state, county, and city on a daily basis for you to view at any time. Finally, we’ll file what you owe to the states for you.

Teapplix - Shipping and Accounting Automation.

Starting the business you've always dreamed about owning? Get off on the right foot with QuickBooks accounting software. Up to 20% off + Free Shipping.
Multi-State Tax Services

Multi-State Tax Services

AccurateTax - Works with the Software You Already Use. - Our solutions are designed to simplify and streamline that process for you on a day-to-day basis. And while sales tax automation is a good thing, we also want to help you find any state-specific information you’re looking for. So if you need details on whether you need to collect tax for a given state, how to register, when your forms and payments are due, or any other information, you can use our state sales tax guides for more information.

AccurateTax - Sales Tax Calculator.
Use our free sales tax calculator to look up the sales tax rates for any US address.

AccurateTax -Sales Tax Information by State.
Each sales tax guide in the list below provides detailed information about sales tax rates, filing options, and deadlines for the specified state. Links are provided to the state’s Department of Revenue (or similar) website to assist you with registering for a resell certificate and filing your tax returns.

Avalara - Automates the entire sales tax filing process, saving time and money. File and remit returns accurately and on time, every time. Avalara SalesTax is free to use. Avalara TrustFile offers a simple and inexpensive solution that automates sales and use tax processes in the states that mandate e-filing and e-payment. TrustFile lets you transmit your sales tax returns and payments electronically per Department of Revenue e-file specifications, with added features that give you greater control over your data and further simplify the entire filing process. TrustFile is now available for $159 per state.

States Sales Tax - Our multistate sales & use tax return filing service will save you a lot of time because in our filing service, there is almost nothing you need to do.

TaxJar - All the data you need to file your sales tax returns by counties and cities. Finally! All the data you need to file your sales tax returns. No more manual work to break sales tax down by counties and cities. Get all of your sales tax data in one place. We’ll download your sales data from eBay, Amazon, Etsy or all of the above. Plus, for sellers who have to file in multiple states - we’ve got you covered.

Join happy customers selling on:
Amazon - Shopify - Etsy - Big Commerce - eBay - WooCommerce - More.

Free - Everything you need to know about Amazon, FBA, and sales tax.

July Sales Tax Deadlines for Online Sellers (list of filing dates for all states).

Amazon & Taxes
Amazon FBA Sales Tax Info

State Sales Tax for Amazon FBA Sellers (FBA = Fulfillment by Amazon)

The state sales tax situation for Amazon FBA can be different from other online selling marketplaces due to the possibility of inventory being placed in Amazon warehouses in various states.

Amazon - How Our Tax Collection Services Work. Quote: State Tax Registration Numbers - Amazon requires sellers to provide state tax registration numbers for the states in which they would like to enable Amazon's tax collection services. Sellers that have not registered with states in which they want to enable tax collection services should complete the requirements for obtaining a state tax registration number from each relevant state. (Whole page of info, this is just one quote.)

Amazon - Tax Collection Services Terms. Amazon charges fees. Quote: Seller Type Fee - Marketplace: 2.9% of all sales and use taxes and other transaction-based charges we collect. - Webstore Sales tax collection service fees are included in the Webstore Payment Processing and Fraud Protection fees calculated on total sales proceeds. (Whole page of info, this is just one quote.)

State Sales Tax Articles for Amazon FBA Sellers

Articles & Info About - State Sales Tax for Amazon FBA Sellers

Avalara Webinar - Bill to or Ship to? Everything you wanted to know about sourcing rules on sales tax.
Date: Thursday January 29, 2015 - Time: 2:00 pm ET / 11:00 am PT - Cost: Nothing

Avalara - Affiliate Nexus Laws and the Online Retailer.

Internet Retailer - 09-24-2014 - Amazon will start charging sales tax in Minnesota.
The state joins 21 others in which Amazon customers are charged sales taxes...

eCommerceBytes - 04-23-2014 - Avalara Offers Sales Tax Solution for Small Sellers, FBA Merchants.

Seller Engine - 02-14-2014 - How to Wrangle Sales Tax the Easy Way.

TaxJar - Free PDF Guide - FBA Sales Tax Guide - Sales tax info for FBA Sellers and Accountants.
TaxJar - Automatic Sales Tax Reports for FBA Sellers. - Basic $ 9.95 a month.

Outright - Free PDF Guide - How Kat Simpson Handles Sales Tax Like a Pro with Outright.

TaxJar - Does Inventory Give FBA Sellers Sales Tax Nexus in Other States?

Creators - Sizing up the ‘Fulfillment by Amazon' Program - Taxes discussed nearthe end of the article.

Tax Rates - When FBA Sellers Must Collect Sales Tax.

eCommerceBytes - 09-17-2013 - Sales Tax Compliance and the Amazon Seller.
eCommerceBytes - 12-20-2012 - Amazon FBA Creates New Tax Responsibilities.

Amazon Sales Tax Nexus for FBA Sellers (Not associated with Amazon) - Sale Tax Nexus for FBA Sellers.
Amazon Sales Tax Nexus for FBA Sellers (Not associated with Amazon) -Nexus Citations.

Our Antique Shop - Collecting, buying, & selling antiques in the online world. - Sales Taxes & Nexus – Two Ugly Issues.

That Kat - 10-04-2013 - Nexus, Does It Apply to Me?
Book - Introduction to Sales Tax For Amazon FBASellers - by Michael Rice and Kat Simpson.

FBA Step by Step - 04-16-2013 - Sales Tax: The Sound and the Fury.

Skip McGrath - 01-2013 - Dealing With Taxes For eBay and Amazon Sellers.

Amazon Genius - 12-21-2012 - Amazon FBA—Third-Party Sellers Responsible for Sales Tax.
(Not associated with Amazon)

NOLO - Law For All - Internet Sales Tax: A 50-State Guide to State Laws. Learn the rules for your state about paying sales tax on Internet sales.

Amazon Seller Forums: Search Term - Sales Tax. (Must be logged in.)

Amazon Seller Forums: Search Term - Collecting Sales Tax. (Must be logged in.)

Tax Obligations & the Amazon Inventory Placement Option

Amazon Inventory Placement - Is Inventory Placement a way around the Amazon FBA sales tax dilemma?

From my reading, I don't think so, but then I am not a tax expert, please consult with your own accountant. Here is some information for reading about Amazon Inventory Placement option in relation to sales tax.

Amazon - FBA Inventory Placement Program Terms and Conditions (Must be logged in.)
Amazon Quote: Assigning Fulfillment Centers -
We will determine in our sole discretion the Amazon fulfillment center to which each shipment of a product/ASIN is assigned. The Amazon fulfillment center assigned may be different for each shipment that you create, even when you participate in the Inventory Placement Service. (See Amazon page for more details.)

Solopreneur - FBA Shipping to Multiple Amazon Fulfillment Centers - Blog article by Carolan Ross.
Solopreneur Quote: (This article is discussing split shipments, but touches on Inventory Placement.)
Alternatives? (to split shipments) Yes, there ARE ways around this multiple shipping. One of them is called Inventory Placement. You can pay Amazon per item to ship everything to the same warehouse. ... This fee was 30 cents per item, but is now charged by weight after Feb 2014 fee changes. HOWEVER, if you use the above option, here’s what will happen: Your items will ship to one warehouse, then likely hop on a semi to be sent elsewhere.

TaxJar - Tracking Sales Tax Just Got Easier

Avalara - Sales Tax Automation - More Videos
Sales Tax for Texas

Sales Tax Info for Texas (As an example of what state sales tax info looks like.)

Texas Online Tax Registration Application

Texas Sales Tax - Frequently Asked Questions
3. What is engaged in business?
A person or a retailer is engaged in business in Texas if any of the following criteria are met:
(A) maintains, occupies, or uses an office, place of distribution, sales or sample room, warehouse or storage place, or other place of business;
(B) has any representative, agent, salesperson, canvasser, or solicitor who operates in this state under the authority of the seller to sell, deliver, or take orders for any taxable items;
(C) promotes a flea market, trade day, or other event that involves sales of taxable items;
(D) uses independent salespersons in direct sales of taxable items;
(E) derives receipts from a rental or lease of tangible personal property that is located in this state;
(F) allows a franchisee or licensee to operate under its trade name if the franchisee or licensee is required to collect Texas sales or use tax; or
(G) conducts business in this state through employees, agents, or independent contractors.
See Rule 3.286.

Marketplace Fairness Act

Wikpedia - "Marketplace Fairness Act is proposed legislation pending in the United States Congress that would enable state governments to collect sales taxes and use taxes from remote retailers..." Be sure to scroll down on that page and view "Current Law".

Marketplace Fairness Act of 2013 - Authorizes each member state under the Streamlined Sales and Use Tax Agreement (the multistate agreement for the administration and collection of sales and use taxes adopted on November 12, 2002) to require all sellers not qualifying for a small-seller exception (applicable to sellers with annual gross receipts in total U.S. remote sales not exceeding $1 million) to collect and remit sales and use taxes with respect to remote sales under provisions of the Agreement, but only if such Agreement includes minimum simplification requirements relating to the administration of the tax, audits, and streamlined filing. Defines "remote sale" as a sale of goods or services into a state in which the seller would not legally be required to pay, collect, or remit state or local sales and use taxes unless provided by this Act.

MarketPlaceFairness.org - Information Site.

Marketplace Fairness Act News Feed. Twitter feed.

The Hill - Blog - Many articles about the subject of Online Sales Tax.


The Hill - 12-17-14 - Retailers to try again for online sales tax.

The Hill - 12-08-14 - Marketplace Fairness Act is not fair to the marketplace.

The Hill - 11-29-14 - Internet sales taxes — What really happened?

Website Magazine - 11-17-14 - No Online Sales Tax Legislation On the Horizon.

Website Magazine - 11-17-14 - No Online Sales Tax Legislation On the Horizon.

eCommerceBytes - 11-15-14 - Online Sales Tax Legislation Appears Off the Table for This Year.

Internet Retailer - 07-17-2014 - Congress takes action on two new bills on Internet taxes.

eCommerceBytes - 06-25-14 - Brick-and-Mortar Retailers Agitate for Online Sales Taxes.

eCommerceBytes - 05-20-14 - New Hampshire Senators Try to Protect Online Sellers in Their State.
(New Hampshire, and about 4 other states, do not have a sales tax.)

Internet Retailer - 03-13-2014 - ‘Defects’ mar a federal tax bill, a congressman says. A federal online sales tax bill that passed the U.S. Senate and now before the U.S House contains significant “defects,” according to a leading Republican congressman.

Tax Foundation - 03-11-14 - Congress to Hear Testimony on Internet Sales Tax.

Internet Retailer - 01-14-14 - Republican discusses a new approach to taxing online sales.


eBayMainStreet - 10-21-13 - eBay Seller Cori O’Steen Discusses Marketplace Fairness Act Tax Collection Challenges.

eCommerceBytes - 04-19-13 - Online Sales Tax Bill Gaining Senate Momentum.

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