Rice Michael - Introduction to Sales Tax for Amazon FBA Sellers: Information and Tips to Help FBA Sellers Understand Tax Law

Introduction to Sales Tax for Amazon FBA S eller s

Information and Tips to Help FBA Sellers Understand Tax Law

Current as of July 1, 2012

Michael Rice & Kat Simpson

K at S impson Enterprises

2012

Complying with Sales Tax L aws as an Amazon Fulfillment seller

Rice, Michael & Simpson, Kat

Copyright 2012 Kat Simpson Enterprises. All rights reserved.

EDITED BY: Jeff Simpson

FIRST PRINTING: July 2012

ISBN-13: 978-1477448403

ISBN-10: 1477448403

Printed in the United States of America

Foreword and c over art by Chris Green of ScanPower.com

Cover photo by istockphoto.com

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Foreword by Chris Green of ScanPower.com

When Michael and Kat asked if they should write a book about sales tax and Amazon, I said, Absolutely!

This is a subject that is not only confusing, but also constantly changing. Laws change, rules change, and just when you think you have it all figured out, something else changes. Were livi ng a time where things change fast and technology is allowing us to do things that simply were not possible just a few, short years ago.

In many cases, the laws were written during a time when no one expected businesses to be conducting business the way that they are doing so today. The concept of nexus still goes over the heads of many online sellers.

Because of these rapid changes, its important to stay current on tax laws not only to keep your bus iness out of hot water, but more importantly to keep the most money in your pocket!

I have known Michael and Kat for many years and it is a joy to work with people who authentically enjoy teaching and helping online sellers.

Due to the constantly changing nature of the subject matter presented in this book, I encourage all readers to check their website for the most up-to-date information as well as join and participate in their online discussion groups.

When I wrote my first book, Retail Arbitrage , everything was current and accurate at the time of printing. A few months later, things changed! New rules and new fee structures (among other things) were introduced. Such are the limitations of the written word when writing about topics that change so fast. Thankfully, we have the Internet to publish updates as well as writing revised and updated books.

I also recommend that everyone have their own CPA who is familiar with multi-state online businesses. Remember, if your CPA does not SAVE you more mon ey than they cost you, FIRE THEM and find a better CPA!

I hope that you find this book as informative and useful as I have.

To your success,

Chris Green

Chris Green

ScanPower.com

Author of Retail Arbitrage: The Blueprint for Buying Retail Products to Resell Onlin e

About the Authors:

Michael K. Rice, CMI

Managing Director

Michael is the Managing Director of Diligencia, LLC based in Houston, Texas. He advises and assists clients on various sales and use tax matters including; audit management/assistance business registrations/start up, compliance, transaction planning and refund reviews.

With more than 12 years of sales and use tax experience, Michael has spent time in both the public and private sector. Prior to forming Diligencia, LLC, Michael worked for a mid-cap oil and gas services and construction company managing all indirect taxes including sales/use, federal excise and property taxes. Prior to that Michael was with one of the largest independent power producers in the United States managing the sales/use tax function. In that role, Michael was also responsible for management and maintenance of the Sabrix tax engine as well as the integration of the tax engine with the company enterprise resource program PeopleSoft.

Michael also has public accounting / consulting experience, spending 4 years with Grant Thornton LLP serving clients from industries such as retail, manufacturing, oil and gas services, and telecommunications.

Additionally, Michael has served on the other side of the table as an auditor for the Louisiana Parishes performing sales and use tax audits of various industries from retail to manufacturing.

Michaels experience in multi-state sales and use taxation includes: providing sales/use tax compliance services, identifying and obtaining state tax refunds based on industry specific issues, managing and conducting state and local tax audits, assisting clients with voluntary disclosure agreements and private letter ruling requests, conducting FAS 5 provision reviews, researching and providing resolutions for a wide range of state tax issues, developing sales and use taxability matrices based on client and industry specific issues.

Michael is a member of the Institute for Professionals in Taxation and has obtained the CMI destination for professional recognition in the field of sales/use tax.

Education

Bachelors of Business Administration-Stephen F. Austin State University

Certification

Michael is a certified member of the Institute for Professionals in Taxation (CMI-s), which recognizes professional accomplishments in the field of sales, and use taxation.

About the Authors:

Kathy Kat Simpson

When Kathy Kat Simpsons husband became permanently disabled she knew she had to focus on her business to support her family and the Web and eBay was her choice of venues.

Kathy Kat Simpson is an established eCommerce expert and entrepreneur with online businesses since 1997. She is the owner of Kats Boutique and successfully sells cross channel on several online platforms. Kats Boutique can be found on eBay and Amazon .

K at is a strong supporter of women entrepreneurs and donates 10% of her eBay sales to Mi Esperanza The Women of My Hope. Kat is also the Chief Bling Officer for the annual breast cancer fundraiser, Bling My Bra , campaign founded by her friend Beth Cherkowsky.

Kat is a shooting star seller on eBay with over 15,000 feedback and has presented workshops at the Kansas Jubilee as well as being a featured speaker at the 2012 SCOE event in Seattle this September.

Kat has successfully co-hosted several ecommerce podca sts such as: eBay and Beyond; The River, The Ranch and the Bay, eCom Connections and is currently the host of FBA RADIO with Chris Green, Lisa Suttora & Bob Willey.

Kat keeps current with the ever-changing landscape of ecom merce and Social Networking as an eBay Education Specialist, a contributor to eBay Radio , the eBayInk Blog , a member of OSI Rockstars , Web Sellers Circle and she stays active on both Facebook and Twitter .

Kat is also very active in the lives of her 5 children and grandchildren.

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