E-COM Sales Tax

It's the Wild Wild West in State Taxes for E-Commerce Businesses Right Now. We've got the latest developments for FBA Sellers in PA, WA, RI, CO, SC.

March 01, 2018 Andrew Johnson, CPA Season 1 Episode 4
E-COM Sales Tax
It's the Wild Wild West in State Taxes for E-Commerce Businesses Right Now. We've got the latest developments for FBA Sellers in PA, WA, RI, CO, SC.
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E-COM Sales Tax
It's the Wild Wild West in State Taxes for E-Commerce Businesses Right Now. We've got the latest developments for FBA Sellers in PA, WA, RI, CO, SC.
Mar 01, 2018 Season 1 Episode 4
Andrew Johnson, CPA
It's the Wild Wild West in States Taxes Right Now. Tune in to hear the latest developments in PA and get your answers to the questions listed below.

Note: There is some nice silence at the beginning of this podcast for 28 seconds. Enjoy the peace :)

Here's a link to the full video broadcast, if you'd rather watch the video.

  • Audio begins (sorry about that silent part) 00:28
  • What's the latest development for e-commerce sellers? 03:21
  • How can states pass these new laws, it seems almost unconstitutional? 04:10
  • What is the specifics of the new situation in Pennsylvania? 05:40
  • Do FBA sellers still need to file sales tax returns in Pennsylvania 06:23
  • Is Pennsylvania a high priority state for FBA sellers from a nexus/registration standpoint? 07:25
  • What if we sell on other platforms, like eBay, or Walmart, do we still have to collect tax on those sales? 07:59
  • Doesn't Amazon already collect tax in all states? 09:15
  • Why doesn't Amazon collect tax for third party sellers everywhere? 09:25
  • If a seller has no inventory in Rhode Island, how can they force online sellers to register and collect tax there? 11:25
  • Does Massachusetts require Amazon to collect tax for FBA sellers? 12:45
  • Why is South Carolina suing Amazon? And what does that mean for FBA sellers? 13:15
  • What's the difference in SC versus Washington and Massachusetts? 13:45
  • Do I need to turn off sales tax collection in Amazon for sales to Washington and PA because Amazon is automatically collecting and remitting it so that there's no double taxation of my customers? 18:45
  • Do FBA sellers still owe the B&O tax in Washington? 19:30
  • Should FBA sellers deregister in Washington? 19:55
  • Should FBA sellers deregister in Pennsylvania? 21:15
  • Are there penalties for sales tax filings if no tax is due? 22:05
  • What is the downside of deregistering in a state? 22:15
  • What is the risk of owing income tax now in PA? 22:59
  • What start date do I choose in South Carolina? 24:30
  • Can I do a VDA in South Carolina 24:45
  • Will SC refund the taxes to the FBA seller if SC loses its case against Amazon? 25:01
  • If I'm not registered right now in WA, should I still register? 27:50
  • Do states ask for an FBA seller's Inventory Event Detail Report? 29:01
  • How does the VDA program work in WA? 30:15
  • How do some FBA sellers justify to themselves registering for sales tax on a going-forward basis without paying the back tax? 31:00
  • How does the state of Washington find FBA sellers who aren't collecting sales tax? 31:45
  • How do other states find FBA sellers who aren't collecting sales tax? 32:02
  • How does the state of Texas find businesses that aren't collecting sales tax? 34:45
  • Will Amazon share seller information with other states? 36:05
  • Will the state of Washington drop audits of FBA sellers? 36:40
  • Do FBM (fulfilled by merchant) sellers have to register in any state other than their own state? 38:50
  • Do FBM (fulfilled by merchant) sellers have to register in Colorado or Rhode Island? 39:10
  • What if we don't register in Rhode Island? 42:01
  • Since when can Colorado 42:30
  • What if the Supreme Court upholds Quill in the Wayfair case? 43:30
  • What if the Supreme Court rules to overturn Quill in the Wayfair case? 44:01
  • Which states have notice and reporting statutes? 47:00
  • Will Congress outlaw notice and reporting rules? 48:00
  • If Quill is upheld, will FBA sellers be off the hook for sales tax? 49:25
  • Why doesn't Amazon collect tax for third party sellers in all states? 50:55
  • Do these new laws also apply to electronic downloads and digital goods? 53:45
  • Does Texas consider software as a service as a nexus-creating property? 54:31
  • What is nexus? 55:15
  • Are ebooks, videos, sound recordings taxable? 57:10
  • When an FBA seller prospectively
Show Notes
It's the Wild Wild West in States Taxes Right Now. Tune in to hear the latest developments in PA and get your answers to the questions listed below.

Note: There is some nice silence at the beginning of this podcast for 28 seconds. Enjoy the peace :)

Here's a link to the full video broadcast, if you'd rather watch the video.

  • Audio begins (sorry about that silent part) 00:28
  • What's the latest development for e-commerce sellers? 03:21
  • How can states pass these new laws, it seems almost unconstitutional? 04:10
  • What is the specifics of the new situation in Pennsylvania? 05:40
  • Do FBA sellers still need to file sales tax returns in Pennsylvania 06:23
  • Is Pennsylvania a high priority state for FBA sellers from a nexus/registration standpoint? 07:25
  • What if we sell on other platforms, like eBay, or Walmart, do we still have to collect tax on those sales? 07:59
  • Doesn't Amazon already collect tax in all states? 09:15
  • Why doesn't Amazon collect tax for third party sellers everywhere? 09:25
  • If a seller has no inventory in Rhode Island, how can they force online sellers to register and collect tax there? 11:25
  • Does Massachusetts require Amazon to collect tax for FBA sellers? 12:45
  • Why is South Carolina suing Amazon? And what does that mean for FBA sellers? 13:15
  • What's the difference in SC versus Washington and Massachusetts? 13:45
  • Do I need to turn off sales tax collection in Amazon for sales to Washington and PA because Amazon is automatically collecting and remitting it so that there's no double taxation of my customers? 18:45
  • Do FBA sellers still owe the B&O tax in Washington? 19:30
  • Should FBA sellers deregister in Washington? 19:55
  • Should FBA sellers deregister in Pennsylvania? 21:15
  • Are there penalties for sales tax filings if no tax is due? 22:05
  • What is the downside of deregistering in a state? 22:15
  • What is the risk of owing income tax now in PA? 22:59
  • What start date do I choose in South Carolina? 24:30
  • Can I do a VDA in South Carolina 24:45
  • Will SC refund the taxes to the FBA seller if SC loses its case against Amazon? 25:01
  • If I'm not registered right now in WA, should I still register? 27:50
  • Do states ask for an FBA seller's Inventory Event Detail Report? 29:01
  • How does the VDA program work in WA? 30:15
  • How do some FBA sellers justify to themselves registering for sales tax on a going-forward basis without paying the back tax? 31:00
  • How does the state of Washington find FBA sellers who aren't collecting sales tax? 31:45
  • How do other states find FBA sellers who aren't collecting sales tax? 32:02
  • How does the state of Texas find businesses that aren't collecting sales tax? 34:45
  • Will Amazon share seller information with other states? 36:05
  • Will the state of Washington drop audits of FBA sellers? 36:40
  • Do FBM (fulfilled by merchant) sellers have to register in any state other than their own state? 38:50
  • Do FBM (fulfilled by merchant) sellers have to register in Colorado or Rhode Island? 39:10
  • What if we don't register in Rhode Island? 42:01
  • Since when can Colorado 42:30
  • What if the Supreme Court upholds Quill in the Wayfair case? 43:30
  • What if the Supreme Court rules to overturn Quill in the Wayfair case? 44:01
  • Which states have notice and reporting statutes? 47:00
  • Will Congress outlaw notice and reporting rules? 48:00
  • If Quill is upheld, will FBA sellers be off the hook for sales tax? 49:25
  • Why doesn't Amazon collect tax for third party sellers in all states? 50:55
  • Do these new laws also apply to electronic downloads and digital goods? 53:45
  • Does Texas consider software as a service as a nexus-creating property? 54:31
  • What is nexus? 55:15
  • Are ebooks, videos, sound recordings taxable? 57:10
  • When an FBA seller prospectively