How Collection Works on Amazon
Most US states now require marketplaces to collect and remit tax for third-party sellers. Amazon calls this Marketplace Facilitator law and explains the details in its help file Marketplace Tax Collection. For those states Amazon adds the tax at checkout, sends it to the state, and credits the amount back to your statement so you never touch the money.
When the Seller Still Remits
Some international markets and a few specialised US taxes remain the seller’s responsibility. You must:
- Register for a permit in any jurisdiction where you have nexus such as employees or inventory.
- Download transaction data from Seller Central Reports.
- File returns on the schedule set by each state or country.
Keeping Margin Intact
Incorrect tax rates can eat profit. Use the FBA Calculator to see net margin after marketplace fees and estimated tax. Pair that with Product Monitoring so a sudden price drop still covers tax and referral costs.
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