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I work in sales tax law and my theory is that the states will agree that it does not create nexus because the seller is not DELIBERATELY deciding where the prod
by anonymous5133 9y ago
I work in sales tax law and my theory is that the states will agree that it does not create nexus because the seller is not DELIBERATELY deciding where the product is being stored. In other words, it is impossible for the seller to even know which state they have nexus with.
- robryan 9y agoAmazon provide reporting which allows you to work out which states you have stock in. It is by no means straightforward but certainly can be done.
- tbyehl 9y agoMy understanding is FBA inventory is fungible, so how would that work when Amazon fulfills an order from inventory that another seller warehoused?
- robryan 9y agoAs I understand it California for example would claim you have a nexus once any stock at all has been moved into an Amazon warehouse in their state. In that case all you would need to see is that Amazon has moved some of your stock into CA and then you would have a nexus and owe sales tax on any sales to customers in CA that your business does, regardless of where that stock comes from. To clear yourself of this nexus requirement for CA you would need to have had no stock stored there for a 6 month period. Obviously whether Amazon internally transporting one unit of your stock to CA for a few days constitutes a "substantial presence" is an untested legal question.