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Amazon FBA Taxes - Tax Season Seller Resources

No one likes talking about taxes but as a business owner, this is not a topic you can afford to overlook.

The topic of Amazon FBA sales tax can be overwhelming and scary especially for beginners.

With tax season around the corner, this is undoubtedly one of the most stressful times of the year for FBA sellers.

If you are a beginner overwhelmed with trying to pay your Amazon FBA taxes for the first time or a seasoned seller just in search of a better solution here are some resources to help you make this process less stressful.

How do I know where I have Amazon FBA Sales Tax?

As an FBA Seller, although the definition differs across each state, the commonly held view is that if you have inventory in an Amazon Fulfilment Center, chances are you have nexus with that state.

You can pull your Inventory Event Detail Report directly from your Amazon Seller Central to help you determine where your inventory has been stored.

Seller Central tax inventory event detail

 

If you are looking for an easier way to automate this entire process, you can use TAXJAR.

 TaxJar Amazon sales tax dashboard

Source: taxjar.com

TaxJar’s system shows a brown Amazon badge next to each state where your product ships from, making it easy to identify where Amazon FBA gives you sales tax nexus and tax liability.

TaxJar Amazon FBA Sales Tax

 Amazon sales tax TaxJar

TaxJar automates your sales tax calculations, reporting, and filings in minutes. This software easily integrates with marketplaces and apps such as Amazon, Shopify, Walmart, Etsy, Paypal and more, to give you a streamlined experience when it comes to preparing return-ready reports.

Its AutoFile feature automates your filing for you so that you never miss a due date again. It is currently used by more than 15,000 businesses and developers worldwide.

With TaxJar you save hours of your time and eliminate your Amazon sales tax headaches. Their software easily integrates with your Seller Central dashboard and organizes your sales tax data and creates sales tax return-ready reports for every state.

They can automatically file your returns for you in nearly all states where you owe sales tax. Using their AutoFile feature.

Benefits of TaxJar

  • No Spreadsheets: TaxJar syncs up with your Amazon account and automatically pulls the information it needs. You don't need to upload or download anything.
  • Automatically all FBA states: TaxJar will tell you what you might owe in each of the states with an Amazon warehouse. These are the states you likely owe sales tax in.
  • Multi-channel: TaxJar reports can accommodate any of the other channels you sell on, too. Your sales tax collected is organized into state-specific reports for easy filing.
  • County and city granularity: No more manually breaking down sales tax collected by counties, cities or districts. For states requiring it, our reports will break this detail down for you. TaxJar is the only software that does this.
  • Automated sales tax filing: For an additional fee per filing per state, their AutoFile feature will file your state sales tax return for you every month, quarter or year. Never bother with sales tax again.

TaxJar Pricing

TaxJar Plus TaxJar Basic
Contact for pricing $17/month

TaxJar Customer Reviews

          "Excellent product for most online sellers battling with interstate sales tax nexus. The overall experience has been great. It took some time to get set up because we have back sales we needed to import. But once everything was operational it saved us time each and every month."
          "Invaluable Tool for Amazon Sellers. I love TaxJar. It is an invaluable tool that saves many hours and makes it possible to confidently files sales tax reports."
          "It handled all aspects of our sales tax needs. We used it to manage real-time calculations so we collected the correct amounts. Then we used the TaxJar service that also files the taxes with each state. When we did have questions, they had answers. This allowed us to focus on the more important aspects of our business."
          "I love TaxJar. It is an invaluable tool that saves many hours and makes it possible to confidently files sales tax reports."

TaxJar Coupon

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How to integrate TaxJar With Amazon FBA

TaxJar's software will connect with your account and provide you with a comprehensive report of all sales tax collected in each county, city and other taxing jurisdiction.

how to integrate TaxJar Amazon FBA

Source: taxjar.com

A2X Amazon Accounting Software

A2X Amazon FBA accounting service

A2X is extremely accurate and efficient accounting software designed to make it easier for you to account for your Amazon marketplace sales.

A2X is fast, user-friendly and is trusted by Amazon sellers and leading Amazon accounting firms worldwide. You can automate your accounting in the top 11 Amazon marketplaces and easily keep track of sales, fees, and FBA inventory.

When Amazon creates a new settlement file, A2X automatically fetches it, crunches the data and generates a summary of the revenue, expense along with other transactions.

You can configure A2X to summarize sales by SKU, product type, and group sales together by the marketplace.

Benefits of A2X

  • Easy Amazon Accounting: You can focus on growing your Amazon business and let A2X take care of your accounting.
  • Save Time Every Month: You can focus on growing your Amazon business and let A2X take care of your accounting.
  • Complete Accuracy: A2X is designed for extreme accuracy. They can deliver Amazon financial data you can rely on to build your Amazon business.
  • FBA Inventory Valuation: You can automatically import inventory data from FBA every month and calculate your stock valuation.
  • Accurate Margins: Easily provide A2X with your cost per product to get a clear picture of your gross margins and true profitability for every settlement.

A2X Pricing

Features Mini Starter Standard Premium
Pricing $19/Month $49/Month $69/Month $139/Month
Orders Per Month Up to 200 Up to 1,000 Up to 5,000 Up to 10,000
Autoload Amazon settlements        
Auto-post to an accounting system        
Seller Accounts 1 1 1 1
Amazon Marketplaces 1 Up to 5 Up to 5 Up to 5
Support Level Email Support Standard Support Standard Support Priority support
Amazon settlement history Up to 6-months Up to 12-months Up to 24-months Maximum available
Post COGS        
Calculate FBA stock value        
FBA inventory locations        
1-on-1 onboarding        

Customer Reviews of A2X

          "Easy to use and immediately saw the value. Splitting Amazon deposits between months was a brutal exercise and now A2X handles it all. A2X and Xero is a no brainer tech stack for any Amazon seller. "
          "Amazon Support is the bee's knees if you ever need it. This software speeds up a process and gives you more time to deal with other tasks. That time savings alone is enough to justify the cost for our company. The integrations are top-notch."
          "I just installed it and got used to it in 5 minutes. I did have some questions about Sales tax and Iona answered me perfectly and very fast. The response time is very fast, the chat is also awesome. The founder Ashley is also on top of everything. I needed some time to understand some tax rules in NYS but I cleared that up and hope to use it for a long time. When you sell on AMZ you need this."
          "A2X's capability is unique in that it maps to the Amazon Settlement statements and matches exactly to the money deposited into the e-commerce business bank account. They even split invoices for settlements that span the end of the month so you have accurate financials by month for their Amazon sales."

A2X Coupon

20% Off For 6-Month Use Code Brock20 for free trial + 20% off for your 1st 6-months.
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Bench.co Amazon Bookkeeping Service

Bench.co Amazon Bookkeeping

Bench.co is perfect for small business owners who need help, or simply don’t have the time, for their bookkeeping. Bench imports bank statements categorize transactions and turn your data into monthly tax-ready financial statements.

They consolidate your monthly statements so you can easily file your taxes at the end of the year.

Bench bookkeepers work in-house, and they respond within one business day. With Bench, you work with real humans, get perfect books, and get to save yourself from hours of stressful accounting work.

Use their intuitive app to track your financials and let their team of bookkeepers take care of your bookkeeping so you can focus on running your Amazon business.

How their service works

  • Get set up: First, they will introduce you to a dedicated bookkeeper. They’ll get to know your business, show you how Bench works, and gather everything they need from you.
  • They do your bookkeeping: Each month, your bookkeeper imports your business transactions and gets to work on your books. If they need anything from you, they’ll get in touch.
  • They deliver financial reports: Easily track business health with real-time and monthly financial reporting. At tax time, we send everything you need to file. Or they can do it for you with BenchTax.

Benefits of Bench.co

  • Expert Bookkeeping: Bench.co gives you a dedicated bookkeeper supported by a team of in-house experts. They can take your tedious financial admin and bookkeeping stress off your plate so you can focus on your business.
  • Tax Preparation: Whether you are filling on your own or working with a CPA, they can send you filling ready financials so you can easily and quickly file your taxes at the end of every year.
  • Financial Reporting: With the Bench Plus dashboard, you can track every transaction, account, and sales trend in real-time all in one place. This allows you to manage your spending like a pro and get clear financial statements and reports.
  • The Bench Platform: Get a direct line to your bookkeeper and fast access to your business information. You can use a desktop or iPhone to access your essential financial insights with just a few swipes.

Bench.co Pricing

Plans Starter Micro Boutique Venture Corporate
Monthly expenses Below $1k $1k to $7.5k $7.5k to $25k $25k to $50k Up to $1M
Price if billed annually $139/month $159/month $179/month $219/month $299/month
Price if billed monthly $159/month $179/month $199/month $249/month $349/month

Customer Reviews

          "Bench provides simple and clear graphics and information about my finances, allowing me to make informed decisions moving forward."
          "We save a considerable amount of money over brick-and-mortar services and save a huge amount of time by not trying to do this ourselves with QuickBooks or similar software."
          "Bench has helped me to track and monitor my business financials. Tax season has been a breeze the last two years with Bench - something a lot of freelancers struggle with."
          "Bench has done a great job of placing most items one would require into a dashboard that makes the bookkeeping experience simple. Customer service at Bench is by far the best in the market! Staff at the company truly believe in the product and provide the end-user with an exceptional experience each and every call."

Bench.co Coupon

20% Off For 6-Month Use BROCK20 for free trial + 20% off  6-months.
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Fetcher Amazon Accounting Software

fetcher accounting software

Thousands of Amazon sellers trust Fetcher to calculate their profits, PPC, refunds, fees and more! Their accurate financial reporting system is securely synced with your Amazon account and is updated every minute.

Fetcher delivers metrics you can act on such as product breakdown on a per ASIN basis, Amazon fees, inventory dashboard, and your daily sales. They offer support 7 days a week for US, CA, MX, and all EU stores.

Up to 93% of customers say Fetcher is essential for running their Amazon business.

Here is how Fetcher works:

  • They fetch your data: It only takes 1 minute to sync your Amazon account and automatically import all historical data.
  • Their software runs calculations: Fetcher calculates critical metrics like profit, PPC, refunds, fees, and updated every minute.
  • You get financial stats: You accurate financial metrics that will help you make better business decisions.

Benefits of Fetcher Accounting Software

  • Sell more products: Fetcher shows you what’s working and what’s not. Double down on what’s working to grow your Amazon business.
  • Earn Back Hours: Fetcher customers on average save 14 hours per month using the easy to read dashboard, Profit and Loss statement and per product breakdown.
  • Get Accurate Metrics: Unlike Seller Central, Fetcher factors in PPC, Promos, Fees, Product Costs and more to give you accurate, real business metrics.
  • In-depth Metrics: You can get product breakdown on per ASIN basis, PPC cost and sales analysis, Amazon fees, and refund tracking.

Fetcher Pricing

Plans Startup Business Enterprise
Pricing $19/Month $39/Month $99/Month
Orders Per Month Up to 2,500 Up to 5,000 Unlimited
7 day/week support      
1-on-1 onboarding      
Syn unlimited Seller Central accounts      
Support in U.S., CA, MX,EU markets      

Customer Reviews

          "It used to be miserable pulling all these numbers out of seller central. Fetcher not only saves me tons of time but also helps me make better business decisions."
          "If you want to level up your Amazon business, you NEED Fetcher. It is like a compass to find your true north, and that is increasing profits. It has helped me tremendously."
          "Wow! I was set up in less than 5 minutes and now I know how much money I’m really making. I didn’t realize Amazon was charging me a lot of these sneaky fees."
          "I love fetcher. It has shown me exactly where my profits are and love that I can see my profit margin without having to do my own excel. Also, Maria 2as so helpful with first the group web call and then with any follow-up emails afterward."

Fetcher Coupon

Get 31-Day Free Trial Try a free trial with no credit card required and sign up in less than 1 minute.
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Watson CPA Tax Guide For LLCs and S Corps

Amazon FBA tax book

Tax law is continuously changing and more so than ever over the last few years. As Amazon sellers, taxes can be extremely complicated to understand.

Whether you are self-employed or have an LLC or an S Corp, this book can give you a great understanding of the overall tax landscape in 2020.

Everything you need from small business tax preparation to payroll accounting is provided at Watson CPA Group. Recently, they have just released the 2019 Edition of Taxpayer’s Comprehensive Guide to LLCs and S Corps.

This book contains detailed information about the pros and cons of creating a small business, and a ton of information about tax benefits and its consequences. It is a great read for the first time self-employed business owners who want to understand the basics of Tax Law.

Learn About:

  • Self-employment taxes
  • Section 199A deductions
  • Avoid self-employment taxes
  • Minimize your tax consequences
  • Maximize your wealth
  • And more tax topics
Get This Book! Take action and learn the tax information that will make your business more successful in 2020.
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Use this book and arm yourself with the knowledge to get an understanding of how to take care of your taxes or least know the pointed questions you should be asking your accountant and tax professionals about your Amazon FBA taxes.

Customer Reviews

          "I originally bought this book as I stumbled across it during another search. The information inside was just what I was looking for (though I hadn't started looking yet). It not only gives summaries and is arranged in a way to make complicated information seem simple, but the examples were amazing. Information that helped me was consolidated in one place as opposed to little insufficient snippets found on many different websites. This book was so very helpful, but I also signed up with the author's firm in Colorado and now they are handling my business (and answering my MANY questions. lol)."
          "Detailed information about the pros and cons of creating a small business. Lots of great detail about the tax benefits and consequences. NOT a ‘dummies’ book – it assumes you already have some background knowledge."
          "Great read for the first time self-employed corp owners. Covers all the main basic of taxes and caveats. Well written and simple to understand for those not well versed in tax law."
          "With this crazy tax Tax Cuts and Jobs Act of 2017, I was no longer able to deduct my mileage on my personal tax returns. Now since I take distributions and a salary from my sole owner S Corp I am able to have the S Corp reimburse me for my mileage providing non-taxed dollars to me, thus lowering my partner distribution # as to not seem excessive by the IRS."

QuickBooks Accounting Software

Quick books accounting sofware

This leading accounting software for small businesses gives you custom reports and allows you to send smart invoices, even through your mobile phone. It helps you get ready for tax time too since you get to import all your transactions from your bank, sort them into tax categories and take snapshots of receipts.

It’s easy to use and is navigable even for entrepreneurs who do not have accounting backgrounds. With over 5.6 million users worldwide, Quickbooks has proven its efficiency and reliability.

Over 90% of customers say the QuickBooks helps them run their business more easily. If you are doing your own accounting for Amazon FBA this is a perfect solution for your business.

Benefits of QuickBooks

  • Track Profitability: Know exactly how much money your business makes with clear reports and dashboards. Whether tracking projects or your product sales, you can keep detailed financials all in one place.
  • Capture and Organize receipts:You can take snap photos of receipts on the go and upload or email receipts to QuickBooks in seconds. Their software will match your expenses or create new expenses for you.
  • Maximize tax deductions:Share your books with your CPA or export important documents when its tax season. The software allows you to easily organize income and expense into tax categories.
  • Track sales tax: You can connect their software to your marketplace platform and automatically calculate taxes on your invoices. Keep sales and taxes in syn no matter how you get paid.

QuickBooks Pricing

Plans Simple Start Essentials Plus
Pricing $12.50/Month $20/Month $35/Month
Track income & expenses      
Maximum tax deductions      
Invoice & accept payments      
Run reports      
Send estimates      
Track sales & sales tax      
Manage bills      
Multiple users      
Track time      
Track inventory      
Manage 1099 contractors      

QuickBooks Reviews

          "I love how it connects to your bank account and transfers all of the transactions to it. Being able to categorize every transaction makes things so much easier. No need to type everything in manually! Reconciling is a breeze!"
          "With Quickbooks I can see the overall health of my business. I can track my expenses, sales, inventories, financial reports and other vital information for intelligent decision making."
          "Great, I would recommend it! Any sort of business needs accounting software, and your business should use Quickbooks. If given the choice, we would use this again."

QuickBooks Coupon

Get 50% Off For 6-Months! Take advantage of this special offer from The Last Amazon Course and save.
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Ecom Attorneys Amazon Tax Services

Amazon FBA Sales tax attorneys

No matter what level seller you are, ecomattorney.com can help you out with your tax situation. They provide full-service tax solutions to Amazon Private Label Sellers, Arbitrage and wholesale sellers.

FRS offers insights, quotes, interviews, and explanations for a wide variety of topics involving e-Commerce sellers. Most importantly, they can help you understand what unique challenges and opportunities third-party sellers face when selling on Amazon. They house a team of tax, IP and corporate experts who can help with the formation, protection, and defense of your Amazon business and your brand.

State tax is a serious issue for online sellers right now. Many sellers think the issue is sales tax, but for those selling on FBA, the picture is much bleaker with income and other tax issues. Paul and his team have represented businesses as an eCommerce lawyer in just about every state, and federally against the IRS. He actively represents sellers in matters across the country, through advisory roles as well as actively in audit and other tax law matters.

Services they offer

  • Sales and income tax services
  • Suspended product or account
  • Trademarks an

Their attorneys have extensive e-commerce experience either first hand as sellers or as counsel to some of the world’s largest corporations.

  • Paul sold video games on Amazon during law school and went on to become a tax counsel at Wal-Mart, Microsoft, and General Electric.
  • Jeff started selling online while in college and grew his pet supply business to $2 million in annual sales before selling it.
  • Vern has practiced patent and trademark law at a prominent law firm and Microsoft.

Check out the content in our course with Paul Rafelson from Ecomattorneys.com with over 20 videos covering everything from legal to taxes.

  • 8 videos covering how to file and set-up your business
  • 4 videos on Amazon taxes
  • 2 videos on laws Amazon sellers need to be aware of
  • 5 videos on trademarks and copyright
  • 5 videos on asset protections
Check out over 20+ videos from The Last Amazon Course Everything you need to know regarding taxes, business protection and more.
Watch Expiry:  

When reaching out to ecomattorneys.com let them “The Last Amazon Course referred you for Amazon FBA sales tax and other services you may need”. We have a great relationship with their firm and as a result, they will take great care of you and prioritize your inquiries.

Amazon FBA Attorneys

Watch my interview with Paul Rafelson on everything you need to know about Amazon FBA sales tax,

The Last Amazon Course

Over 340 videos (45+ hours)

Interviews with other million dollar sellers and CEO's, and much more

All for just $1.00 / month

LEARN MORE
Want to take your Amazon Business to the next level? CHECK IT NOW!
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