What taxes may I need to pay on Amazon US?
1. Federal Corporation Income Tax: Federal corporate income tax; tax rate is 15~35%; reported once a year.
2.State Corporation Income Tax: The tax rate is 4.5~12%, and some states have a 0% tax rate.
3.Local Income Tax: Local corporate income tax.
4. Sales Tax: Consumers pay, e-commerce collects and pays on their behalf; the tax rate is 5.4~12%, and there are several states with a 0% rate (for example: OR, DE, NH, MT).
5. Payroll Tax: Payroll tax; deducted from employees’ wages and paid by e-commerce companies on their behalf.
6.Busines Privilege Tax: Business privilege tax; collected by local governments.
Under what circumstances will Sales Tax not be charged?
1. If a Chinese Amazon seller ships entirely from China using FBM, then it will obviously not constitute a Nexus, and naturally there is no need to collect Sales Tax for any state. If this Chinese seller sets up an overseas warehouse in PA (Pennsylvania) and delivers from this overseas warehouse, the Chinese seller has established a Nexus in PA and needs to collect Sales Tax from orders (customers) from PA, but does not need to collect Sales Tax from orders (customers) from other states because no Nexus is established in other states.
2. Cross-border e-commerce, including US e-commerce, only needs to collect Sales Tax in one or two states that constitute the Nexus, or even no collection is required (all shipments are made from China). If an e-commerce company only has Nexus in one state, and it has 10,000 orders a year, with an average of 200 orders in each of the 50 states, then only 200 orders need to be charged Sales Tax, and the other 9,800-plus orders do not need to pay sales tax.
For cross-border e-commerce sellers, especially Amazon sellers, Sales Tax is the most common tax. If the Sales Tax order is not implemented properly, it is very likely to be missed, resulting in several years of back payment. This is the end of our introduction to US taxes and sales tax. If you want to get more information about sales tax, please continue to pay attention!
