There’s a lot involved in running an e-commerce business — from managing inventory to fulfilling orders — and in many ways, Amazon has simplified these steps for online retailers, especially through Fulfillment By Amazon. However, while Amazon can collect sales tax on a seller’s behalf, it’s the seller’s responsibility to determine where that sales tax needs to be collected.
This can be especially complicated for online retailers because sales tax laws are subject to change and the amount of sales tax a seller must collect depends on numerous factors. That’s why it’s important for sellers to familiarize themselves with sales tax policies not only in their own state, but also in the states where they do business.
