Amazon operates as a marketplace facilitator, which means it's legally required to calculate, collect, and remit sales tax on behalf of third-party sellers in all states that have marketplace facilitator laws. For most Amazon transactions, the sales tax burden is handled automatically — Amazon files a combined monthly return for each state that includes both its own sales and all sellers' transactions. This is a meaningful simplification compared to how things worked before 2018.

What Amazon Handles for You

Amazon calculates the correct tax rate for each transaction, collects it from the buyer, and remits it to the appropriate state on your behalf as part of its monthly combined filing. This covers all sales made through the Amazon platform in marketplace facilitator states.

What You're Still Responsible For

Even with Amazon managing collection and remittance, a few seller responsibilities remain:

• Filing in your home state: Depending on your state, you may still be required to file a sales tax return — even if Amazon already remitted the tax. In this case, you'd file what's known as a zero-dollar return, reporting no taxable sales but satisfying the state's filing requirement.

• Sales tax registration: If you have sales tax nexus in any state, you're generally required to register for a permit in that state — even if you sell exclusively through Amazon.

A Few Additional Things Worth Knowing

• FBA creates physical nexus. Storing inventory in Amazon fulfillment centers establishes physical nexus in those states, which typically triggers a registration requirement regardless of your sales volume there.

• Other sales channels are your responsibility. Marketplace facilitator rules only cover Amazon transactions. Sales through your own website, Shopify store, or other platforms require you to handle collection and remittance independently in states where you have nexus.

• A handful of states have no sales tax. Montana, New Hampshire, and Oregon (among others) don't impose sales tax, so no collection is required for sales to customers in those states.

Amazon relieves you of the most time-consuming part of sales tax compliance — calculation and remittance. Understanding your registration and filing obligations is the piece that still requires your attention.