Table of Contents
Introduction to amazon
Amazon, Founded in 1994 by Jeff Bezos has evolved to become the biggest marketplace online in 2024. The variety offered at amazon allows them to cater to diverse audiences all across the globe. Their products range from clothes to utensils to electronics and even different forms of entertainment. It is the consumer’s ultimate paradise. If you want to become a seller there, Here are 7 FAQs you must be aware of.
Do you need an accountant?
Unless you’re a professional yourself ( an accountant) then having an accountant is imperative for business. They can be a very big help and although you’ll probably have to pay them, accountants can save you money in taxes and even do tax refunds owed to you.
What is a 1099-K form?
A 1099-k form is a sales reporting issued to you from amazon that tracks annual and gross monthly sales information and provides it to the IRS. The report also includes sales tax and shipping fees. If you’re an individual or a professional seller then you don’t have to worry bout filling in this document because amazon will do it for you and even send it to the IRS.
Who gets a 1009-k form?
Not everyone is eligible for the 1099-k form. To meet the requirements, you must have atleast $20k in sales and 200 transactions. If you have atleast 50 individual transactions, you still need to provide amazon with tax info and details or you risk losing your status as a seller. You can provide Amazon with your tax information via your Seller Central account, under ‘tax information.’
Where to find your 1099-k form?
If you meet the requirements, chances are they’ve emailed it to you already but if they haven’t then you can find it from here:-
- Login to your seller central account
- Select the reports menu
- Find the Tax Document library
- And finally, download/print your 1099-K for the year.
What if my 1099-k form is inaccurate?
It isn’t likely for your form to be inaccurate but on the off chance that it does happen, follow the following steps:-
- Make sure you’re reporting the unadjusted gross sales for the year. They’re based on shipping dates. If the sale was made in December but shipped in January, the report will include January.
- Print a date report by following these steps: Seller Central>Reports>Date Range Reports>Generate a statement>Generate Date Range Report>Summary> ‘Monthly’ or ‘Custom,’>Generate.
- Once the report is generated, review the report in the list on the Date Range Report.
- Calculate your unadjusted gross sales by adding the amounts in the report columns together; they’re listed in the two charts.
What is sales tax?
Sales tax is a consumption-based levy imposed by governments on the sale of goods and services. Calculated as a percentage of the purchase price, it’s collected by sellers at the point of sale and remitted to the appropriate tax authority. In the United states, it varies from state to state. This is why it is important to keep an accountant because keeping track of sales tax when you’re in multiple states is difficult.
Do you need a business license?
It varies from state to state depending on your locality but typically, amazon doesn’t require you to have a business license especially if you run a small business but if you operate on a larger scale with employees, offices etc then it’d be a good idea to have one on you.
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