Let’s be real: sales tax is probably the least exciting part of running your Amazon business. You’re focused on selling, scaling, and keeping customers happy, not decoding tax laws. But then, BAM—you hear the words Nexus, economic thresholds, and multi-state compliance, and suddenly, it feels like you need a law degree just to stay compliant.
If you’re thinking, “Wait, doesn’t Amazon handle this for me?”, you’re not alone. Many sellers assume Amazon takes care of all sales tax obligations, only to find out (sometimes the hard way) that they’re still responsible for certain tax filings.
Don’t panic, we’ve got you. As a trusted Austin, Texas CPA, Insogna CPA helps Amazon sellers navigate sales tax compliance without losing sleep. Let’s break it down in plain English so you know exactly what Amazon handles, what you’re still on the hook for, and how to stay compliant without spending hours in tax spreadsheets.
Does Amazon Collect and Remit Sales Tax for You?
Yes… and no.
Amazon is a Marketplace Facilitator, meaning they collect and remit sales tax on behalf of sellers in most states. So, if you sell on Amazon, you might think you’re totally covered. But here’s where things get tricky:
- Amazon collects tax only in states where they’re legally required to do so (45+ states).
- If you sell on other platforms like Shopify, Etsy, or Walmart, you’re responsible for collecting and remitting sales tax yourself.
- Even if Amazon collects the tax, some states still require you to register for a sales tax permit (yes, even if you don’t technically remit anything).
Confused yet? You’re not alone. That’s why working with an experienced CPA in Austin, Texas can save you a massive headache.
What’s Nexus & Why Should You Care?
If you’ve never heard of Nexus, get ready because it’s the reason why some states expect you to collect sales tax even if you don’t live there.
In simple terms, Nexus = a connection to a state that triggers sales tax obligations. There are different ways this happens:
- Physical Nexus – If you store inventory in an Amazon FBA warehouse, you have a tax obligation in that state (even if you’ve never set foot there).
- Economic Nexus – Many states require sellers to collect sales tax once they hit a sales threshold (e.g., $100,000 in revenue or 200 transactions in a year).
- Affiliate Nexus – If you work with affiliates in certain states, their presence might create a tax obligation for you.
- Temporary Nexus – Sell at a trade show or pop-up event? Congrats, you might owe sales tax in that state now, too.
Moral of the story? If you’re selling in multiple states, you probably have Nexus somewhere. Not sure where? That’s where Insogna CPA, a top-rated Austin tax accountant, can help.
How to Stay Compliant (Without Losing Your Mind)
You don’t need to become a tax expert to keep your business compliant—you just need a system that works. Here’s how:
Step 1: Figure Out Where You Have Nexus
Use tax automation tools like Avalara or TaxJar to track where your sales are triggering tax obligations.
Pro tip: Insogna CPA, one of the leading Austin accounting firms, can help you analyze your sales data and determine exactly where you need to collect and remit taxes.
Step 2: Register for Sales Tax Permits (But Only Where Necessary!)
Some states still require you to register, even if Amazon is collecting for you. The trick is knowing where and when to register.
Need help? Our team at Insogna CPA, a trusted Austin small business accountant, will make sure you’re only registering where necessary so you don’t waste money on permits you don’t actually need.
Step 3: Automate Sales Tax Collection on Other Platforms
Amazon may handle sales tax for its own platform, but if you also sell on Shopify, Etsy, Walmart, or your own website, you’re responsible for collecting and remitting sales tax.
We recommend tools like QuickBooks Online, Avalara, or TaxJar to automate tax collection and filing. At Insogna CPA, we help Amazon sellers integrate these tools so they don’t have to stress over tax rates and compliance.
Step 4: File & Remit Taxes on Time
Every state has different filing deadlines (monthly, quarterly, or annually), and missing them can result in unnecessary penalties.
As one of the top CPA firms in Austin, Texas, we handle tax filings for our clients so they never miss a deadline.
Step 5: Partner with a Tax Expert Who Actually Understands eCommerce
This isn’t just about compliance. It’s about having a smart tax strategy that keeps more money in your pocket.
- Monitor sales thresholds to avoid registering in states too early.
- Navigate marketplace facilitator laws so you’re not collecting tax where you don’t have to.
- Stay audit-proof with proper documentation and compliance strategies.
At Insogna CPA, we go beyond basic tax filings—we help Amazon sellers streamline, automate, and optimize their tax strategies.
Why Amazon Sellers Trust Insogna CPA
Listen, we get it, sales tax is the last thing you want to deal with. That’s why Amazon sellers trust Insogna CPA, a leading Austin accounting service, to handle compliance so they can focus on growing their businesses.
- We specialize in eCommerce tax strategy—we don’t just kind of know Amazon, we live eCommerce tax.
- We automate your tax compliance—so you can stop wasting time tracking state-by-state rules.
- We provide concierge-level service—because your business deserves more than a generic CPA firm.
Whether you need a small business CPA in Austin, an Austin, TX accountant, or help from one of the best CPA firms Austin, Texas has to offer, we’re here to make your life easier.
Let’s Take the Guesswork Out of Amazon Sales Tax
Sales tax compliance doesn’t have to be a nightmare. With the right tools, expert guidance, and a solid strategy, you can stay compliant, avoid penalties, and focus on what really matters—growing your Amazon business.
🚀 Let’s make sales tax stress-free. Schedule a call with Insogna CPA today, and let’s handle compliance together!
Whether you need an Austin tax accountant, help from a CPA firms Austin, Texas, or an Austin small business accountant who actually understands eCommerce—we’ve got you covered. Let’s do this!