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Does Amazon pay sales tax for sellers?

Gina D'Amore
Financial Accountant
Gina D'Amore is a Financial Accountant and the Founder of Love's Accounting. With 12 years of experience, Gina specializes in working with smaller companies in every area of accounting, including economics and human resources. She holds a Bachelor's Degree in Economics from Manhattanville College and a Bookkeeping Certificate from MiraCosta College.

Gina D'Amore

Financial Accountant

Expert Answer

Amazon does not pay the merchant sales tax—they collect it and give it to the appropriate state and city. It's very complicated! As a seller, it helps a lot call a sales tax agency to assist you with paying your sales tax.

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Question

How do I add 6% sales tax to an amount?

Community Answer

Multiply the amount x 1.06. This will give you the total amount, including the tax. The "1" is 100% of the item cost, and the ".06" is the tax rate of 6%. For example, you buy a screw driver set for $10.00 and the sales tax rate is 6%. $10.00 x 1.06 = $10.60. This is your total, including tax.

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Question

Can 6% be written as 0.0600?

Community Answer

6% would be 0.06, all you do is move the decimal two spaces to the left. For example 6% sales tax on an item would be calculated by multiplying the total cost by the decimal form of the percentage. Say the total cost was $30.00, it would be calculated as 30 x 0.06 = 1.8 then add the quotient to the original cost.

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Question

If I sell three trees at $85.00 per tree and tell the buyer I included the 6% sales tax in the total price, and $85.00 per tree equals $255.00, when I make out my sales tax form, what do I say the amount of tax was and what was the sale amount?

Community Answer

To calculate the sales tax that is included in receipts from items subject to sales tax, divide the receipts by 1 + the sales tax rate. For example, if the sales tax rate is 6%, divide the total amount of receipts by 1.06. $255 divided by 1.06 (6% sales tax) = 240.57 (rounded up 14.43 = tax amount to report.

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Question

How much is $1070.50 + 6% tax?

Will Thompson

Community Answer

The answer is $1134.73. Multiply by 1+ tax rate. So, $1070.50 X 1.06 = $1134.73.

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Question

How can I convert percentages to decimals?

Community Answer

You take the percentage, divide it by 100 (because percentages are out of 100) and that is the decimal equivalent of that percentage.

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Question

How do I add 9 percent to 189?

Community Answer

Calculate 1 percent (in this case, 1.89), multiply that by 9, and add it to 189.

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Question

If I have an item to be sold for $46,000 including tax and the tax rate is 7.38%, how do I find the base price for the item?

Apprenticexyz

Community Answer

To find the cost or base price of an item use the total and divide it by the tax rate: $46,000 / 1.0738 = $42,838.52. That is the base price. Now to get the total tax rate you can use $46,000 - $42,838.52 = $3,161.48. So you have total including tax = cost plus total tax. $46,000 = 42,838.52 + 3,161.48. The only tricky part is the tax rate has to be converted to divide to it; you take 7.38 x 100 = 0.0738 and you add 1, so it's 1.0738.

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Question

How can I find the original cost with only the sales tax total and rate? For example: tax rate is 8.6% and collected tax is $15.55.

Community Answer

Divide the total tax by the tax rate. In your case, $15.55 / 8.6% = $180.81. The original cost is $180.81, and the total cost with tax included is $180.81 + $15.55 = $196.36.

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Question

How does sales tax impact my paycheck?

Donagan

Top Answerer

It should not impact your paycheck at all.

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Question

How do I know what the sales tax is from a total?

Apprenticexyz

Community Answer

Unless the tax rate is explicit you would need to know the cost to get the total sales tax. You can't find it from 1 value alone.

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Question

How do I find out tax rate?

Community Answer

Search online for insidegov.com. You can search for the state, city, or county. They will show all sales tax by county.

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Question

If I buy an item and pay tax at time of purchase before turning around and reselling it for 15% more, do I charge the purchaser the sales tax on the marked-up item?

Community Answer

Yes. However, when you file your sales and use tax, you can subtract the tax already paid on the item you purchased from the amount owed to the state for that sale.

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Question

How do I calculate what the tax was when I have only the total with tax?

Community Answer

Work backwards. Divide your tax by the total, and if you get .05, then the answer is 5 %.

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Question

Do I round up or down when I get a sales tax number that's a decimal?

Community Answer

Round up when you get a sales tax that's a decimal. If you round down, you could be a little short on money.

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Question

Where do I find my state's sales tax rate?

Community Answer

You can look it up. but you must use your state's name.

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