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Amazon Sortation Centers: Understanding Sales Tax Nexus for FBA Sellers
What Are Amazon Sortation Centers?
Amazon sortation centers (SCs) are vast warehouses where packages shipped by Amazon are sorted and organized for delivery. They play a crucial role in the fulfillment process, ensuring that products reach their destinations efficiently.
Sales Tax Nexus for FBA Sellers
As an FBA (Fulfillment by Amazon) seller, it's important to understand whether your sales are subject to sales tax nexus. Sales tax nexus is a determination of whether a seller has a physical presence in a state that requires them to collect and remit sales tax on their sales.
Amazon Sortation Centers and Sales Tax Nexus
Amazon sortation centers by themselves do not create sales tax nexus for FBA sellers. Amazon's physical presence in a state is not considered the seller's presence unless the seller has additional activities or connections to that state.
However, FBA sellers should be aware of the following factors that may create a sales tax nexus:
- Having a physical inventory of products stored in a state
- Shipping products from a warehouse located in a state
- Having customer service representatives based in a state
FBA sellers should carefully review their operations to determine if they have any of these activities that could potentially create sales tax nexus in a state.
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