Amazon Taxes & Business
Navigate tax complexities & optimize your business.
Amazon’s business model involves different activities, each with its own tax implications. Here’s a summary of the key points:
Sales tax
Amazon collects sales tax on behalf of sellers in states where it has a physical presence (nexus). The sales tax rate is determined by the state and local jurisdiction where the buyer resides.
Income tax
Amazon pays income tax in the jurisdictions where it has taxable income. The amount of income tax Amazon pays depends on its profits and the applicable tax rates.
Other taxes
Amazon may also be subject to other taxes, such as property taxes, payroll taxes, and customs duties.
For businesses selling on Amazon, there are different tax considerations depending on their business model. Here are some of the key points:
Individual sellers
Individual sellers are responsible for paying their own income taxes on the sales they make on Amazon. They may also be responsible for paying sales tax, depending on the location of their business and the location of their buyers.
Small businesses
Small businesses that sell on Amazon may be able to take advantage of simplified tax filing procedures. They may also be eligible for tax credits and deductions.
Large businesses
Large businesses that sell on Amazon have more complex tax obligations. They may need to hire a tax professional to help them comply with all applicable tax laws.
Additional Tips:
If you are an Amazon seller, it is important to consult with a tax professional to understand your tax obligations.
Here are some additional resources that you may find helpful:
Amazon Seller Central Help: https://sellercentral.amazon.com/help/hub
IRS Small Business and Self-Employed Tax Center: https://www.irs.gov/businesses/small-business-and-self-employed-tax-center
National Association for the Self-Employed (NASE): https://www.nase.org/
