Amazon TaxJar

New Feature for FBA Sellers: Narrow Down Where You Have Sales Tax Nexus

by Kevin Reeth

TaxJar Icon 2015

Updated 11/13/2015 to more fully explain the new feature.

FBA sellers have complex sales tax needs. This is because FBA sellers usually have sales tax nexus in multiple states due to storing inventory there. Until this week, TaxJar helped our users identify the states where they might have nexus by showing you all of the states where Amazon has fulfillment centers on your TaxJar dashboard.

But today, we’re happy to announce that TaxJar is one step closer to telling you where FBA gives you sales tax nexus.

Now you can login and TaxJar will show you badges next to states where your Amazon FBA orders have shipped from.

What does this new feature mean?

For new TaxJar users: When you sign up for your 30-day free TaxJar trial and connect your Amazon Seller Central account, we will determine from which states you ship orders.

For all TaxJar users: Login and check out your dashboard or your state settings page. A small badge will appear by the states where your FBA inventory has shipped.

FBA Sales Tax Nexus TaxJar

Your state settings page will look like this. Amazon badges indicate states where we show you have nexus.

Note for existing users: For existing users, you may have been tracking sales in FBA states where you may or may not have nexus, depending on whether you had orders ship through there. We will be using the last month’s data to determine for sure which states you shipped orders through. If you find that you now see some FBA states on your dashboard and state settings page, but they don’t have badges next to them, let us know by emailing support@taxjar.com and we can re-run your data going back to the beginning of the year. If no orders are found to have shipped through a state you’ve been tracking, and you otherwise determine you have no nexus there, you can remove it from your dashboard.

Important Sidebar

Also note that this feature will tell you from where your orders have shipped. In a small number of cases you may have inventory stored in a fulfillment center (thus creating nexus), but perhaps your items haven’t shipped out of that fulfillment center in awhile. Because Amazon’s fulfillment network is so tightly structured this rarely happens, but we want you to be aware of every contingency. If you think you have nexus in a state due to inventory but don’t see that state show up on TaxJar, you can also follow these instructions to run an Amazon inventory event detail report.

So if you have been wondering where FBA gives you sales tax nexus, sign into you TaxJar account, or sign up for your 30-day free trial, and find out!

Questions or comments about FBA sales tax nexus and this feature? Let us know in the comments section below. If you have any problems with this feature, contact us at support@taxjar.com.

  • Adam Kelly

    So in basic terms, each FBA state that shows an Amazon Badge next to it tells me WHERE I need to register for a sales tax permit in? If so my life just became a lot easier! Please advise.

    • Yes! Let us know if we can help with anything else!

  • Michael

    What if I setup a seller account but have not yet registered for a sales tax permit in that state?

  • Pingback: How to Set Up Amazon Sales Tax Collection()

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