Amazon US and sales tax. (To USA Retailer of all brand)

[Viking]

I see more and more retailer open store at Amazon. com, which is positive. However it can be hard to see, where you are located.

Q1.My question is: How do I avoid the sales tax for "out of state" at you store at Amazon?
https://www.amazon.com/gp/help/customer/display.html?nodeId=468512
Q2. How do I find a return address, when I do the shopping. I just want to make sure return address is placed in USA.
Q3. Do you do sales in another way?
Q4. Do you use of Ebay/Paypal?

 

[jokiin]

I thought it showed the buyer with sales tax if that was appropriate based on your location in relation to the seller

 

[Viking]

According to the Quill ruling, retailers without an actual physical presence (stores, warehouses, computer servers, what have you) in a state aren't required to force customers to throw down sales tax on their purchases. While a lot of business that allow mail and online orders do, in fact, have brick-and-mortar locations in plenty of states—think Best Buy, Target, Walmart—it's this ruling that spurred Amazon and others like it to build as few of their warehouses around the country as possible. With this handy little loophole, massive online retailers get to offer lower prices, lure in more customers, and put another nail in Mom and Pop's respective coffins, all in one fell swoop.

(Since Amazon got building in my state, I have to pay state tax)

 

[jokiin]

I would guess in some cases then that an item fulfilled by merchant could be cheaper than one fulfilled by Amazon depending on respective locations, sounds messy if that's the case

 

[DrekiTech]

This is all heresay since I'm not an Amazon merchant in USA. But I think it goes like this:

1. If you are a buyer there's no way to avoid the tax, if it is applied. It is based on the location of the warehouse (if FBA - which mean from an Amazon warehouse). If it is coming from out of the country taxes are charged at time of import if applicable, and/or you're supposed to declare them and remit yourself. You shouldn't pay tax if there are no business operations in your state but I believe the law varies state to state. Even item to item possibly. I'm not sure if sellers have a choice in this. Here in Canada tax rules are applied automatic but can be manually overridden for items that are tax free normally (groceries). Some sellers cheat I believe. I notice that if an item comes from Ontario sometimes I'm not charged tax but usually I am...

2. You won't be able to find a return address with Amazon merchants unless you have direct contact with the merchant. If it is an FBA item, buyers will need to go through the Amazon system to return it unless they are directly in contact with the merchant and provided an alternative address. For example I got a flashlight that broke, and I contacted the merchant to see if they'd just send me the little part. They said talk to Amazon and return it - they didn't want to deal with me. Returns do hurt item ranking. For non-FBA stuff which usually comes from overseas warehouses, the only access you have to return addresses is through Amazon's return system, or if the merchant gives you an address. If the item is bought from an Amazon warehouse fulfillment, the return shipping will always be within the USA. If it is shipped from China, then that's where the return address will be.

3. Amazon, eBay, depends what I'm selling and what volume. I don't sell anything direct through my own website and I'm not using FBA services at the moment.

4. As much as I hate eBay / PayPal, it is one of the easiest way to sell niche photography antiques, so yeah I use it. So far my luck has been good, but I've heard horror stories.

 

[niko]

Best is to search answers to those questions from amazon forums. I assume someone already might ask similar questions there.

 

[kamkar]

At least you dont have taxes on taxes with corresponding handling fees fees like here.

Buying little small things abroad ( non EU ) i often encounter that the prize get doubled, and thats just the customs handling fee, if its a little more expensive ( like 50 dollars ) then i get taxes and fees too depending on what it is, so in total a 50 dollar thing from USA can end up being a +120 dollar item by the time i get it.

For example the 25 dollar spare parts i just got for my RC truck ( 3 small axels with gears on them ) they now cost me 75 dollars and thats without taxes as they was so "cheap".
http://www.rpphobby.com/product_p/rc4z-s1709.htm

 

[Edgardo]

I would guess in some cases then that an item fulfilled by merchant could be cheaper than one fulfilled by Amazon depending on respective locations, sounds messy if that's the case

Happens all the time with me. I do a lot of Amazon Prime shopping and often look for a "Fulfillment by Amazon" rather than sold by Amazon which does collect sales tax since they built several distribution warehouses in this state. A loophole they will probably close someday.

Like this backyard composter I was looking at...

 

[DT MI]

Most people generally assume that if they purchase something from an out-of-state seller they are exempt from paying a sales tax. This is correct in the absolute sense but under those conditions they instead become liable for payment of a 'use tax' which happens to be assessed at the same rate as the sales tax. This applies to all states that have a sales tax. The big difference is the seller is not required to collect it.

When the states first enacted their sales taxes, the tax was imposed only on in-state sales. There was no use tax. As businesses began to offer delivery services and customers realized they could avoid sales taxes by ordering products from businesses in a different state, the complimentary use tax was enacted. Currently, every state that imposes a general sales tax also imposes a use tax.

Reference: http://www.salestaxinstitute.com/Sales_Tax_FAQs/What_states_impose_sales_use_tax

 

[SawMaster]

There are sometimes legal ways to avoid sales taxes. In one state, out-of-state residents are not required to pay sales tax on certain larger purchases so many folks here drive down there for those kinds of things instead of buying locally. You show the seller your out-of-state ID then they record your name, address, and ID number and it's done And since it wasn't purchased nor delivered here commercially there's no tax on it once you get home either

But online sales with the buyer in the US are all supposed to have someone paying the State sales tax, and most private-person sales sites (Ebay, Amazon, Etsy etc.) require their sellers to conform to all applicable tax laws or risk having their accounts closed.

Phil

 

[DT MI]

There are sometimes legal ways to avoid sales taxes. In one state, out-of-state residents are not required to pay sales tax on certain larger purchases so many folks here drive down there for those kinds of things instead of buying locally....

Yeah, that whole process can get pretty 'complicated', especially when it comes to big ticket items. Most states have fairly consistent tax laws on stuff like that but there are always exceptions. Michigan has a fairly broad 'catch all' clause in the sales/use tax law to cover the scenario you described.

"Use tax of 6 percent must be paid on the total price (including shipping and handling charges) of all taxable items brought into Michigan or purchases by mail from out-of-state retailers."

From: http://www.michigan.gov/taxes/0,4676,7-238-43519_43529-155460--,00.html

Big problem from the states point of view is compliance and enforcement since it requires the individual to self-report the purchase and remit the appropriate tax.

It's worse in states that have 'personal property' tax assessments and require taxes be paid on the same item year after year for as long as you own it, this in addition to the sales/use taxes that are paid as part of the purchase.