Recent Changes With Amazon Warehouse Laws

The SALTcast

A common question amongst Amazon sellers is, “If I am part of the Fulfillment by Amazon (FBA) program, am I obligated to collect and remit sales tax?” This can be a tricky question to answer as it is continuously changing and evolving per state. States and local municipalities continually shift and change their tax rules and stances. To complicate things further, Amazon continues to build new warehouses in every state. So finding an accurate answer to this question can prove to be grueling. We’re here to help.
Recent Changes
In general, most states agree that any inventory stored in their state creates nexus which in turn imposes a tax obligation upon sellers. However, the state's stance on this can be ambiguous. Sellers that utilize a marketplace facilitator find that selling through a third party warehouse can throw a wrench in the works. Why? Because you don’t always have control over where your inventory is. Typically, inventory creates physical nexus. Though, Arizona has recently changed its stance on this matter.
If you want to chat about how these new changes may affect you schedule your What's Next call today!