An Amazon FBA Seller’s Guide to Understanding Sales Tax Nexus

Jérôme de Guigné
7 min readJan 21, 2022

Taxes, taxes, taxes… A Seller’s worst nightmare. They can be filled with scary numbers, calculations, and many complications.

Taxes give you sleepless nights and an urge to bang your head on the table, especially for Amazon Sellers, where the complexity of filing taxes is much more. In fact, many Sellers are not even aware of the sales tax and its regulations on the marketplace.

They might be intimidating, but they’re equally as important for your business to run smoothly. This is why, for compliance reasons, you must be well aware of the ins and outs of sales tax.

Sales tax regulatory laws are a broad topic, and taking it all in one guide can be overwhelming. So, to keep things simple, this blog will cover one of the most vital pieces of sales tax regulatory laws, the sales tax nexus.

Let’s jump right into the very basics…

Do you pay taxes on Amazon FBA?

Many Amazon Sellers are unaware of the fact that they need to pay taxes on Amazon. However, the point still stands — online retailers (including those selling on the e-commerce giant) need to pay taxes like all other brick-and-mortar businesses.