How to pay taxes when opening a store on Amazon US? Detailed introduction

Amazon's US site has a large amount of traffic and a high level of consumption, so it has attracted many domestic sellers to settle in. After settling in, whether it is a Chinese company or an American company, they need to pay taxes. So how do you pay taxes when opening a store on Amazon's US site?

If the customer applied for an Amazon account in the United States with a Chinese company and then sold the goods to the whole United States, on October 23, 2018, I received an email from Amazon saying that the California tax department asked Amazon to provide the seller's contact information and tax ID; Amazon plans to provide this information to the California tax department on November 6, 2018.

For many e-commerce companies, corporate income tax is the easiest to deal with. If you do not have a permanent establishment in the United States, you can choose to pay taxes in your own country. Sales tax is a tax paid by states and local governments in the United States on goods and services at a certain percentage of their sales price. Sales tax is borne by consumers, whether they purchase goods or services; states and local governments in the United States are responsible for collecting sales tax.

1. Chinese companies need to fill out Form SS-4 and apply for a corporate tax number EIN from the federal government.

2. Then, with your EIN, go to each state that makes up Nexus to register and apply for a sales tax license.

3. Make corresponding Sales Tax settings in the merchant account, and then the Amazon system will automatically calculate and collect Sales Tax when consumers place an order.

4. Amazon transfers the seller’s payment and sales tax to the bank account provided by the seller every 14 days.

5. Merchants shall pay the collected sales tax to the state tax bureau on a monthly, quarterly or semi-annual basis.

The above is an introduction to the steps of paying taxes when opening a store on Amazon US. When opening a store on Amazon, you need to pay sales tax, value-added tax, and goods and services tax.