Amazon has been a popular platform when it comes to achieving the online freedom lifestyle.
Scott Letourneau – Sales Tax System – Voluntary Tax System
One Simple System How to Get Your FBA Business In Sales Tax Compliance
Attention FBA Sellers
Read the important information below to discover…
The EASY and SMART Way to STAY Tax Compliant, Pay Zero Sales Tax and Grow Your Amazon Business for the Long Term
Continued Success
Stop All Your Efforts Tax You don’t have to be worried about this simple fact-To-Use Total Compliance Sales Tax System.
Amazon has been a popular platform for internet freedom. It is used by many families and individuals.
It has not only created one of the most advanced fulfillment networks in the world by storing, packing and shipping your products to your customer… it has also provided Amazon sellers with multiple advantages.
These include easy access to the huge marketplace, two-Fast delivery, secure payments, and more available in a day
This incredible and lucrative opportunity has seen online sales soar to almost $190 Billion in just the last few years.
Until recently, consumers were able to buy products online at a reduced price by saving on sales taxes. But states lost billions in uncollected revenue from sales tax.
Most States have since adopted this policy. ‘get in’ on the huge revenue pie, and began charging all online businesses sales tax. This affected EVERYONE who does business on the internet, even Amazon FBA sellers.
These new tax policies are now known as the “Amazon laws”, and since they’ve been released, most FBA Sellers and online business owners unfortunately feel like they’re literally waiting to be hung… it’s just a matter of time.
This is because, as an FBA Seller or owner of an online company, you must now:
COLLECT Sales tax in the Right amount.
REMIT This tax To the appropriate state agency.
If sales tax is not paid on time, it becomes a liability. sales tax PLUS Interest PLUS penalties, Totalling to a MASSIVE 41 %
SALES TAX = 8.8%
INTEREST = 3%
Penalties = 30%
TOTAL = 41%
Here’s a quick example of a sales tax liability owing Only $5,000 in sales across different States
FBA sellers (or any owner of an online business) can use this tool. State governments hold you responsible for being in COMPLIANCE.
If you’re an established FBA Seller and have NOT collected and paid your sales taxes, you are HEAVILY under water and need to act immediately.
Failure to Collect and Send Sales Tax When you were required to Means You’ll be Obliged to Pay the Sales Tax Liability out of your OWN PACKET
This is why it is possible to run your business while you are not in compliance. FLUSHING Your Profits Down The Toilet!
Choosing to ignore the responsibility of becoming compliant does not free you from being indebted to the collection agency of that particular state… and, it gets worse…
Neglecting to Pay the Outstanding Tax Liability This could not only put your business in liquidation, but also put you at risk of bankruptcy!
The State Sales Tax The department has the power to exercise its rights and bring legal action against your to recover the amount owing plus penalties and interest.
Here’s a Typical Sales Tax Audit Scenario:
Let’s say you’re an Amazon FBA seller and you fail to collect or remit sales tax in one of the FBA states, nothing may happen at first, and after a year or two with no audit, you may incorrectly assume that you’re in compliance.
BUT…
A few years later, when the state tax agency eventually searches your business and does a manual audit, you’ve now entered their taxation audit process and are legally bound to co-Operate, collaborate, and comply.
The sales tax auditor will then require you to immediately pay the uncollected taxes without delay (plus any additional costs). The longer you take to pay, the bigger the amount you’ll be forced to pay in the long run.
Anyone Who’s Been Audited from the Tax Department will admit that it is a very difficult battle to recover from.
In a perfect world, you’ll get audited in the first year of business, keeping your taxes and penalties down.
However, we’ve seen many cases taking 7-Audits can take up to 10 years before they reach businesses with a shocking surprise.
At that point, it’s generally too late for business owners to recover because the tax agency assesses every single transaction from day one, which generally accumulates too big of an amount for the business owner to pay, causing the destruction of that business plus personal litigation.
What and when does it matter? Sales Tax Do you need to pay?
When you have sales tax, you must collect and remit it. nexus. No nexus? No problem. You’re off the hook for sales tax.
If you have nexus, however, sales tax is your responsibility so long as you continue trading in an FBA state.
What is the nexus?
It’s just a fancy way of saying you’re obliged to collect and pay sales tax by the tax office in a given state.
Basically, you have nexus in each and every state where your business benefits from that state’s services or infrastructure.
Examples are using that state’s roads or bridges, sending your staff there for any business reason, and/or storing products in a warehouse in that state (yes for Amazon sellers).
FBA business owners generally have nexus (tax liability) in at least one of your home states and the states where your products are stored.
Note: There are only five states in the US that don’t have nexus:
Alaska
Montana
New Hampshire
Delaware
Oregon
If you are NOT in one of these states and use Amazon’s FBA service, then you have sales tax nexus and are required to collect and remit sales tax in your business.
Behind the scenes Sales Tax?
If you have been selling for 6 months or longer, and have NOT collected or remitted sales tax, you’re not alone. This is a common problem for businesses that are just starting out. It’s also likely you had the wrong information and didn’t even know that collecting and remitting sales tax was required.
The bad news is that not getting into compliance ASAP can lead to financial disasters and be extremely detrimental to your company.
Each day, you are not collecting or remitting Sales Tax You are responsible in the States Where You Nexus for the Sales Tax That’s Accruing.
Sale Page: http://www.salestaxsystem.com/sp/34519-salestaxsystemcom-sales-page
