Selling Lego on Amazon.com

[Jackson]

3 minutes ago, Sharkeye said:

https://www.amazon.com/gp/offer-listing/B01HG239OI/ref=dp_olp_new_mbc?ie=UTF8&condition=new

Amazon selling knock off Jurrasice World Lego figures now? Wow...

They aren't described as "LEGO" or "Jurassic", but maybe the dinosaur designs are IP infringement? I don't know.

[Bold-Arrow]

SCOTUS rules in favor of states collecting sales tax : https://taxfoundation.org/supreme-court-decides-wayfair-online-sales-tax-case/

[landphieran]

48 minutes ago, Bold-Arrow said:

SCOTUS rules in favor of states collecting sales tax : https://taxfoundation.org/supreme-court-decides-wayfair-online-sales-tax-case/

In essence, if we have had 200 transactions/100,000$ sales in South Dakota we have to charge/pay sales tax?

[anon33]

In essence, if we have had 200 transactions/100,000$ sales in South Dakota we have to charge/pay sales tax?

The big picture, this opens the door for all states to have everyone charge sales tax with infinite thresholds.... One state.can say all sales... Another can set a threshold of 10k, another 50k, etc...

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[jay4e]

3 hours ago, Bold-Arrow said:

SCOTUS rules in favor of states collecting sales tax : https://taxfoundation.org/supreme-court-decides-wayfair-online-sales-tax-case/

Its likely that amazon and ebay will just start collecting it for all sales.  since they are likely going to be held accountable, even for 3rd party sales. the places this could get messy are small sites like bricklink.  

Ultimately I suspect the payment processors will end up facilitating it, and charge an extra fee for the service.

 

 

[Migration]

39 minutes ago, jay4e said:

Its likely that amazon and ebay will just start collecting it for all sales.  since they are likely going to be held accountable, even for 3rd party sales. the places this could get messy are small sites like bricklink.  

Ultimately I suspect the payment processors will end up facilitating it, and charge an extra fee for the service.

 

 

Extra Fee is the operative phrase there. Also I think you are most likely correct.

[brickology101]

Ok, so ebay and amazon charge the sales tax on what we sell and the tax money ends up in our bank account then each seller must file for a business license in 20+ states, likely more in the near future, and every quarter or so we need to file and pay the sales tax to each state. What a nightmare...

[newbie77]

42 minutes ago, brickology101 said:

Ok, so ebay and amazon charge the sales tax on what we sell and the tax money ends up in our bank account then each seller must file for a business license in 20+ states, likely more in the near future, and every quarter or so we need to file and pay the sales tax to each state. What a nightmare...

already been doing it for 4 so its just 16 more

[BrickLegacy]

Ok, so ebay and amazon charge the sales tax on what we sell and the tax money ends up in our bank account then each seller must file for a business license in 20+ states, likely more in the near future, and every quarter or so we need to file and pay the sales tax to each state. What a nightmare...

If this comes to fruition it will put many small shops out of business and eBay will follow.


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[brickology101]

1 hour ago, newbie77 said:

already been doing it for 4 so its just 16 more

I am doing 7 or 8 and it is a pain. Honestly there could be another 4 with smaller sales. So far I was okay disregarding them. But now, the fact that the tax money is going to my bank account courtesy of eBay or amazon it is a greater offense to not remit it to the state. The only good thing about this situation is that it levels the Plainfield whereby every seller will charge a sales tax.

[asharerin]

5 hours ago, brickology101 said:

Ok, so ebay and amazon charge the sales tax on what we sell and the tax money ends up in our bank account then each seller must file for a business license in 20+ states, likely more in the near future, and every quarter or so we need to file and pay the sales tax to each state. What a nightmare...

I don't believe it will work like that. Amazon currently collects sales tax for all sales going to WA and PA (and soon for OK). The seller does not get to keep those funds but a reverse entry is immediately made and Amazon is the one to hold onto the funds and then remit them. In turn Amazon gets to keep a cut of those taxes from these states for doing the legwork. I believe this is how it will continue on Amazon as more and more states get added (it will be many years before all states pass their own laws regarding this). 

As for ebay and the other platforms I believe they will follow suit as it is a good source of income. I don't think a whole lot will change in the next few years but the thing to focus on for this year on Amazon is if the taxes collected for WA, PA and OK sales appears in the gross on the 1099 (in which case we need to back it out so we don;t pay taxes on that amount). Nobody has been able to get an answer yet from Amazon on this.

[brickology101]

22 minutes ago, asharerin said:

I don't believe it will work like that. Amazon currently collects sales tax for all sales going to WA and PA (and soon for OK). The seller does not get to keep those funds but a reverse entry is immediately made and Amazon is the one to hold onto the funds and then remit them. In turn Amazon gets to keep a cut of those taxes from these states for doing the legwork. I believe this is how it will continue on Amazon as more and more states get added (it will be many years before all states pass their own laws regarding this). 

As for ebay and the other platforms I believe they will follow suit as it is a good source of income. I don't think a whole lot will change in the next few years but the thing to focus on for this year on Amazon is if the taxes collected for WA, PA and OK sales appears in the gross on the 1099 (in which case we need to back it out so we don;t pay taxes on that amount). Nobody has been able to get an answer yet from Amazon on this.

You picked my curiosity so I went back to my amazon transactions over the past few months and during April I sold a Lego set to a buyer in Washington state. The Product Tax accrual is clearly there but I cannot find a reversal for the order ID. I looked through the entire month of April for a repeat of the same Product Tax amount thinking that perhaps it got reversed later but nothing. Now, I sell FBA and perhaps what you said is for FBM. But still, why would Amazon remit the Sales tax for third party sellers ?

[asharerin]

10 hours ago, brickology101 said:

You picked my curiosity so I went back to my amazon transactions over the past few months and during April I sold a Lego set to a buyer in Washington state. The Product Tax accrual is clearly there but I cannot find a reversal for the order ID. I looked through the entire month of April for a repeat of the same Product Tax amount thinking that perhaps it got reversed later but nothing. Now, I sell FBA and perhaps what you said is for FBM. But still, why would Amazon remit the Sales tax for third party sellers ?

We only sell FBA. Look up the transaction ID and go to transaction details. Scroll down to  the line below product charges and you will see "other" product tax. This is the state sales tax Amazon has collected on your behalf. Now scroll down to sale proceeds and you will see the reversing entry called "MarketplaceFacilitatorTax Principal". This amount equals the sales tax collected by Amazon on your behalf. Amazon holds onto this amount for you (it is never disbursed to you) and remits it to the state every quarter. Amazon gets a percentage of this sales tax for providing this service (it is not paid by you but the states are the ones who give the cut).

Currently Amazon does this for sales to WA and PA with OK getting added soon. They will add the other states once those states pass their own legislation regarding internet sales tax for out of state merchants (it will take many years for all of the states to figure this out and pass legislation). So on Amazon there will be no extra work or fees for their 3P sellers. Ebay, Walmart, Shopify, Etsy etc will all have to step up their game and add the same seamless function (doubtful) or Amazon will attract all 3P sellers. I cannot imagine the workload and expense of trying to collect and remit sales tax for 16,000 duristictions across the USA.

If you are curious as to what Amazon has collected for you then you can generate the sales tax report in the tax document library. This will list all the transaction IDs for WA and PA, as well as any other states you setup yourself manually, and any transactions where Amazon bought from you directly to resell on one of their platforms.

[river41]

2 hours ago, asharerin said:

We only sell FBA. Look up the transaction ID and go to transaction details. Scroll down to  the line below product charges and you will see "other" product tax. This is the state sales tax Amazon has collected on your behalf. Now scroll down to sale proceeds and you will see the reversing entry called "MarketplaceFacilitatorTax Principal". This amount equals the sales tax collected by Amazon on your behalf. Amazon holds onto this amount for you (it is never disbursed to you) and remits it to the state every quarter. Amazon gets a percentage of this sales tax for providing this service (it is not paid by you but the states are the ones who give the cut).

Currently Amazon does this for sales to WA and PA with OK getting added soon. They will add the other states once those states pass their own legislation regarding internet sales tax for out of state merchants (it will take many years for all of the states to figure this out and pass legislation). So on Amazon there will be no extra work or fees for their 3P sellers. Ebay, Walmart, Shopify, Etsy etc will all have to step up their game and add the same seamless function (doubtful) or Amazon will attract all 3P sellers. I cannot imagine the workload and expense of trying to collect and remit sales tax for 16,000 duristictions across the USA.

If you are curious as to what Amazon has collected for you then you can generate the sales tax report in the tax document library. This will list all the transaction IDs for WA and PA, as well as any other states you setup yourself manually, and any transactions where Amazon bought from you directly to resell on one of their platforms.

I believe there are 2 issues here

1) pa and wa passed a law requiring a marketplace to collect sales tax on all third party sales.

2)  if you will have 200 sales in south dakota this year you are required to collect and remit sales tax to sd.  As of now amazon has not announced any plans of automatically charging and remitting it for you. The sd law targeted the seller not the marketplace so it is the sellers obligation and headache.

 

as more states pass sales tax laws the question becomes will they require the marketplace to collect it or the seller.  If its the seller the idea of all that paperwork is a nightmare

Edited June 22, 2018 by river41
clarity

[Pebble&Park]

Just had a new issue pop up that has never happened to me before. A box was delivered to a facility on Tuesday, went into Receiving last night. 3 out of 67 items were checked in but nothing else, and the progress has stopped for that box. Makes no sense to me, you would think that they would finish a box once they start it. I've never had a box stay in Receiving that long. Anyone else had that problem?

[Bold-Arrow]

Just now, Pebble&Park said:

Just had a new issue pop up that has never happened to me before. A box was delivered to a facility on Tuesday, went into Receiving last night. 3 out of 67 items were checked in but nothing else, and the progress has stopped for that box. Makes no sense to me, you would think that they would finish a box once they start it. I've never had a box stay in Receiving that long. Anyone else had that problem?

yes.... nothing to worry about just yet. 

[jbacunn]

f
 
as more states pass sales tax laws the question becomes will they require the marketplace to collect it or the seller.  If its the seller the idea of all that paperwork is a nightmare

Which is why I think that eBay and possibly Amazon will have to provide an additional service of handling the sales tax completely. It will result in higher fees but they have to take that burden off the seller or eBay is done. They will be go out of business if the seller is responsible for all of this. Your average person selling stuff to make extra money will stop selling because they don't want to deal with this.

[Bold-Arrow]

so update of the WH scheme :

1 return came back pristine and untouched. ( still have to do a weight test ) 

1 return came back with the seals cut but otherwise looks complete ( haven't inventoried the bags yet 0 

1 return still on the way back . 

[thombockerman]

I’m starting to wonder if it’s like one person suggested- he has a number of these and is using other listings to drop ship and return his stock to amazon. Risk free. Storage fee free. Sellers fee free. That’s about 25% more take home.

[Migration]

1 hour ago, Bold-Arrow said:

so update of the WH scheme :

1 return came back pristine and untouched. ( still have to do a weight test ) 

1 return came back with the seals cut but otherwise looks complete ( haven't inventoried the bags yet 0 

1 return still on the way back . 

My return notification finally came for the expected reason, WH is still en route. 

[exciter1]

18 minutes ago, Migration said:

My return notification finally came for the expected reason, WH is still en route. 

WTHMF!

[brickology101]

8 hours ago, asharerin said:

We only sell FBA. Look up the transaction ID and go to transaction details. Scroll down to  the line below product charges and you will see "other" product tax. This is the state sales tax Amazon has collected on your behalf. Now scroll down to sale proceeds and you will see the reversing entry called "MarketplaceFacilitatorTax Principal". This amount equals the sales tax collected by Amazon on your behalf. Amazon holds onto this amount for you (it is never disbursed to you) and remits it to the state every quarter. Amazon gets a percentage of this sales tax for providing this service (it is not paid by you but the states are the ones who give the cut).

Currently Amazon does this for sales to WA and PA with OK getting added soon. They will add the other states once those states pass their own legislation regarding internet sales tax for out of state merchants (it will take many years for all of the states to figure this out and pass legislation). So on Amazon there will be no extra work or fees for their 3P sellers. Ebay, Walmart, Shopify, Etsy etc will all have to step up their game and add the same seamless function (doubtful) or Amazon will attract all 3P sellers. I cannot imagine the workload and expense of trying to collect and remit sales tax for 16,000 duristictions across the USA.

If you are curious as to what Amazon has collected for you then you can generate the sales tax report in the tax document library. This will list all the transaction IDs for WA and PA, as well as any other states you setup yourself manually, and any transactions where Amazon bought from you directly to resell on one of their platforms.

Yes, I see now. Thanks for that. What I still don't understand is why the product tax shows as an accrual without a counter charge in my Transaction View. Anyhow, this is good.

[exciter1]

1 hour ago, Migration said:

My return notification finally came for the expected reason, WH is still en route. 

Here we go, refund just initiated.  Too bad I have 2 cases already in play where this order should have been cancelled.

[Bold-Arrow]

Just now, exciter1 said:

Here we go, refund just initiated.  Too bad I have 2 cases already in play where this order should have been cancelled.

I actually emailed him and threatened legal action ( probably against Amazon's TOS but figured he should know that the jig is up) ... Said he was sorry and wont do it again... blah blah 

[exciter1]

14 minutes ago, Bold-Arrow said:

I actually emailed him and threatened legal action ( probably against Amazon's TOS but figured he should know that the jig is up) ... Said he was sorry and wont do it again... blah blah 

I'll put out an preemptive strike in the morning.