Las Vegas, NV, 04/17/2017 /SubmitPressRelease123/
Data gathered by The Capital Forum showed that Amazon third-party sellers who used Fulfillment by Amazon (FBA) failed to pay an estimated $1.9 billion in state sales tax for 2016. The report also showed that less than 6 percent of the top 5,000 FBA sellers are compliant with state tax regulations. PROSPER Show, an annual business conference for Amazon sellers, is helping retailers navigate challenging tax issues to avoid the liability of unpaid sales tax.
After fighting with the states for many years, Amazon now pays sales tax to 42 states for its own direct sales. Amazon, however, takes the position that sales tax for FBA sales is the retailer’s obligation. Unfortunately, retailers often end up with significant sales tax liability because Amazon moves inventory from state to state, often without clear notice. Quickly moving inventory between Amazon’s fulfillment centers in 22 states creates sales tax nexus and triggers the seller’s obligations to collect state sales tax. On the average, sellers have products in seven fulfillment centers during the first month of using FBA and in more than 15 fulfillment centers by the end of a year.
The 2017 PROSPER Show internet marketing conference was held in Las Vegas, Nevada on March 22, featured helpful insights about sales tax nexus including presentations by Richard Cram and Michael Fleming. Richard Cram, Director of the Multistate Tax Commission’s National Nexus Program in Washington D.C., detailed which activities by an out-of-state online retailer are sufficient to trigger income tax nexus and what steps can be taken to comply with state regulations. Michael Fleming, Director of Peisner Johnson & Company, a CPA firm focused on solving state and local tax issues, discussed the mechanics of the voluntary disclosure process and tax audits.
“A big part of online business success is compliance, and the facts show that many online retailers are lacking in this area,” said James Thomson, co-founder of the PROSPER Show. “PROSPER Show is helping FBA shops on Amazon better navigate and comply with the tax code.”
PROSPER Show is a prime resource for established Amazon retailers who seek to build more profitable businesses while meeting leading service and solution providers. The show includes workshops with experts in the online industry. The workshops focus on optimizing profits, improving tax compliance, creating unique selling propositions, attracting outside Internet traffic, and more. The conference also features exhibitors offering support for online vendors, including feedback and review software, shipping, financing, and shopping cart hosting.
The 2018 PROSPER Show will be held on March 14 and 15 at the Las Vegas Convention Center. For more information about the PROSPER Show, visit www.ProsperShow.com or call 1-801-845-0554.
SubmitPressRelease123/posts/?ref=page_internal” target=”_blank”>Like Submit123 PR on Facebook and get your news published