Storing goods across various states through FBA can complicate sales tax obligations for Amazon sellers. This article explores these complexities and offers guidance on determining sales tax nexus in different scenarios.

When you sell via Amazon FBA that means that your goods are stored in Amazon warehouses. Generally speaking, when a seller stores goods in the territory of a State that means this seller has physical nexus in this state and needs to register for sales tax. However, some states made exemptions for sellers who only sell via marketplaces. If Amazon or other Marketplace is responsible for the sales tax collection on merchant’s sales in a state physical nexus may not lead to an obligation to register for sales tax.

Further, you can see a table where storage in the FBA warehouse doesn’t lead to registration.

However, when you start selling in the US Amazon you don’t know where your goods will be stored by Amazon. Just place your first order and you will see the final destination of your goods in the FBA warehouse and you will have around 30 days to register for sales tax.

Table: Physical nexus for Amazon sellers

State	Can Amazon sales only create Economic nexus?	Amazon FC creates Physical Nexus?
Alabama	No	No
Alaska	No	No
Arizona	No	No
Arkansas	No	No
California	No	No
Colorado	No	No
Connecticut	Yes	Yes
Delaware	No sales tax	No sales tax
District of Columbia	Yes	No
Florida	No	No
Georgia	No	No
Guam	No sales tax	No sales tax
Hawaii	Yes	Yes
Idaho	No	No
Illinois	No	No
Indiana	No	Yes
Iowa	No	Yes
Kansas	No	No
Kentucky	No	Yes
Louisiana	No	Yes
Maine	No	Yes
Maryland	No	No
Massachusetts	No	No
Michigan	No	No
Minnesota	No	Yes
Mississippi	No	No
Missouri	No	No
Montana	No sales tax	No sales tax
Nebraska	Yes	Yes
Nevada	No	Yes
New Hampshire	No sales tax	No sales tax
New Jersey	Yes	Yes
New Mexico	Yes	Yes
New York	No	No
North Carolina	No	No
North Dakota	No	Yes
Ohio	No	No
Oklahoma	No	No
Oregon	No sales tax	No sales tax
Pennsylvania	No	No
Puerto Rico	No sales tax	No sales tax
Rhode Island	No	Yes
South Carolina	No	No
South Dakota	Yes	Yes
Tennessee	No	Yes
Texas	No	No
US Virgin Islands	No sales tax	No sales tax
Utah	No	Yes
Vermont	No	No
Virginia	No	No
Washington	Yes	Yes
West Virginia	Yes	Yes
Wisconsin	No	No
Wyoming	No	Yes

If you see that your goods are stored in a state where you need to register, you can order a sales tax registration. As soon as Amazon remits sales tax from your sales your sales tax returns will be with zero amount of sales tax due. With Lovat–Amazon integration you can set an auto-pilot regime when your sales tax return data will be auto-uploaded and submitted to a relevant tax authority.