Does Amazon FBA Inventory in Florida Trigger Nexus?
- Jul 22, 2016 | Laura McCamy
Florida has at least five Amazon Fulfillment centers. So you might assume that your Amazon FBA inventory in Florida will trigger nexus, which would require you to collect and remit sales tax on your Florida sales.
But Florida doesn't just come right out and say that. Instead the state leads remote sellers in circles with a load of confusing legalese. Could we expect any less, from a state that has gained a reputation for being the home of the country’s weirdest weird news stories?
The Florida statute on mail order sales (which also covers sales made over the Internet) states that an ecommerce seller (called the “dealer” in this statute) is subject to FL sales tax when said dealer “owns real property or tangible personal property that is physically in this state[.]” It’s not super clear, but that would probably include your Amazon FBA inventory in Florida fulfillment centers.
If that’s not enough for you, Florida adds this super confusing paragraph about what can create nexus for remote sellers:
The dealer or the dealer's activities have sufficient connection with or relationship to this state or its residents of some type other than those described in paragraphs (a)-(k) to create nexus empowering this state to tax its mail order sales or to require the dealer to collect sales tax or accrue use tax.
One way or another, it seems that Florida wants figure out a way for you to get nexus. So, if you have Amazon FBA inventory in Florida, you should register to collect and pay FL sales tax.
Sales tax in Florida is destination-based. This means that the sales tax you will charge each Florida customer will be based on the tax rate for the address to which you ship the order. That’s good news if your nexus is triggered by Amazon FBA inventory in Florida, since you don’t have to take into consideration the location from which each order was shipped. Sales tax automation software can help you calculate and pay the correct amount of taxes on all your Florida sales.