Sales Tax, Physical Nexus, Economic Nexus is a Regulatory Mindfuck. What’s your strategy?
I just launched an FBA brand, and I can’t even focus on marketing because of this bullshit.
Now Amazon collects taxes for us everywhere, but yet, some states consider FBA inventory to be physical nexus, and thus require a zero tax return. Since Amazon is continually expanding it’s facilities, the number of zero tax returns you could have to file is absurd:
List of facilities:
https://sellercentral.amazon.com/help/hub/reference/G201811680#mnd_2jc_jcb
Is that even a full list? Here’s one in North Dakota, which I don’t see on the list:
The cost of autofilling these pointless zero returns is 35-60$/each depending on where you do it. And that’s every quarter, for every state. If you take a worst case of 46 states, with Avalara’s pricing at that tier ($54/return), that comes out to almost 10k/year, for filing pointless returns Amazon already collected tax on.
It looks like if you qualify for the SST program, you can get 25 states done for free through Avalara though, does anyone have experience with that? Maybe that’s the best way to go, just register in those 25, let Avalara handle the bullshit for free, and then pay for others with fulfillment centers.
There is NO WAY IN HELL this does not qualify as an UNDUE BURDEN on interstate commerce.
Is anyone already suing over this? I know Wayfair is suing over the complexities of Colorado’s system specifically, but what about us little guys who are just starting out, who don’t want to spend countless hours and absurd sums of money, just so we can file pointless zero tax returns to stay “compliant”.
Starting to think I’m better off just not registering anywhere, what are they gonna do, come after me for the zero taxes I owe since Amazon already collected?
Oh, and did I mention, having inventory in a state may also mean you have to FILE INCOME TAXES IN THAT STATE TOO. How the fuck is this not an undue burden on interstate commerce?
FUCK THIS SHIT.
/rant
submitted by /u/see_the_bias
[link] [comments]