What is Amazon Sales Tax?
Sales Tax is a tax levied by states and local governments in the United States on goods and services based on a certain percentage of their sales price. Consumers must pay Sales Tax regardless of whether they purchase goods or services. Sales Tax is generally collected by businesses on behalf of state and local governments when they sell goods and services, and then the businesses pay it to the government on a monthly, quarterly, semi-annual or annual basis.
What are the consequences of not paying Sales Tax?
1. For sellers who do not comply with sales tax regulations, the state government can use various compulsory measures to collect taxes, including auditing, recovery, and referral to the state attorney general's office for legal prosecution, and they may also face imprisonment!
2. For cross-border e-commerce companies, the seller accounts that have been painstakingly cultivated, the payments that have not yet been withdrawn from Amazon, and the inventory in the FBA warehouse, etc., are all stuck! It is entirely possible that the state government will request the U.S. court to seal up the above assets. At this time, the sales tax for the past five years must be paid, along with the corresponding late payment fees, penalties and interest. It is impossible for e-commerce companies to recover the sales tax confiscated at that time from customers, so they can only pay out of their own pockets.
This is the end of this article on Amazon Sales Tax. If you want to learn more about Amazon Sales Tax, please stay tuned!
