The opening of more and more Amazon Fulfillment Centers is a push designed to help Amazon fulfill orders more quickly in the busy, populated area surrounding Chicago.
The Kenosha center is located at 38th St. Kenosha, WI, 53144 (Kenosha County) and the warehouse code is #MKE1.
For your average everyday Amazon shoppers, the opening of the first Wisconsin Amazon fulfillment center isn’t big news. They’ve been paying sales tax on Amazon purchases for awhile now.
But if you sell on Amazon FBA, the Kenosha facility heralds a big change. Read on for more!
What does the Wisconsin Amazon Fulfillment Center mean for FBA Sellers?
Storing inventory in an Amazon fulfillment center creates “sales tax nexus.” Some FBA sellers may be asked to send inventory to the new Kenosha warehouse, or their inventory may be shipped there. This means that some FBA sellers may find themselves with sales tax nexus in a new state.
Step 1: Determine if You Have Sales Tax Nexus in Wisconsin
Wisconsin considers a seller to have sales tax nexus in the state if you have any of the following in the state:
- An office or place of business
- An employee present in the state
- Goods in a warehouse
- Ownership of real or personal property
FBA sellers should check to determine if they have any products stored in Wisconsin. You can do this in one of two ways:
1.) Run an inventory report on Amazon
2.) Login to your TaxJar account and looking for the brown Amazon badge next to the state of Wisconsin
If you determine that your inventory is being stored in Wisconsin, you should next…
Step 2: Register for a Wisconsin Sales Tax Permit
Don’t skip this step! Many states consider it unlawful to collect sales tax in their name without a permit. Wisconsin asks that – if possible – you register for a sales tax permit three weeks before your business opens, so if you suspect your goods will be sent to the Kenosha, Wisconsin Amazon Fulfillment Center you might want to register. Go here for more on how to register for a sales tax permit in Wisconsin.
Once you receive your Wisconsin sales tax permit you’ll be assigned a filing frequency. Wisconsin usually requires that you file monthly in your first year. After that, they’ll determine if you can go on a quarterly or even annual filing schedule. This is usually determined by your volume of sales to customers in Wisconsin.
From here, you can use TaxJar to help you quickly and easily report and file how much sales tax you’ve collected. And that’s it! Then you can get back to what you love – sourcing, sending shipments and running your FBA business!
Do you have questions about the new fulfillment center in Kenosha, Wisconsin or about Amazon FBA sales tax in general? Check out our Sales Tax 101 for Amazon FBA Sellers guide or ask away in the comments!