Short answer: Sometimes. Amazon calculates, collects and remits sales tax on marketplace orders in states with marketplace facilitator laws. You may still need a permit where you have nexus, for example because your FBA inventory is stored there, or where you sell outside Amazon. Some states also expect returns even when Amazon collected all the tax.
Below: what changed, when a permit is still needed and how to register, with state examples current as of October 2026.
What marketplace facilitator laws changed
Before marketplace facilitator laws, each third-party seller was responsible for collecting sales tax on its own sales in every state where it had to. Marketplace facilitator laws moved that job to the platform. On its Marketplace Tax Collection page, Amazon explains that it calculates, collects and remits sales tax on qualifying third-party orders shipped to states where these laws apply.
For sellers, that removed most of the work of collecting tax on Amazon orders. It did not remove every registration or filing obligation, because those depend on each state's rules about your business, not just about the order.
California shows the distinction clearly. The state's tax agency (CDTFA) says you are not required to register for a seller's permit or a Certificate of Registration – Use Tax if all of your retail sales are facilitated by a marketplace facilitator registered with CDTFA. If you also make direct sales to California customers, or you are engaged in business in the state, you may have a registration requirement.
When you still need a permit
Physical nexus, including FBA inventory
Nexus is the connection with a state that creates a tax obligation. Storing inventory in a state is a common way to create it, even if Amazon chose the warehouse.
- Washington: The Department of Revenue says physical presence "requires only more than the slightest presence", and lists "having a stock of goods in Washington, including inventory held by a marketplace facilitator or another third party representative." It adds that if you have physical presence, you must register even if you do not meet an economic threshold.
- California: CDTFA says "a seller located outside of California that stores inventory in a California fulfillment center is considered to be engaged in business in California." Out-of-state retailers with a location in California need a seller's permit; those without one need a Certificate of Registration – Use Tax.
FBA can place your stock in several states, so know where it sits and compare that with each state's rules.
Economic nexus thresholds
States can also require registration once your sales into the state pass a set level, even with no physical presence. Thresholds and the way sales are counted vary by state. The Streamlined Sales Tax Governing Board keeps a Remote Seller State Guidance chart with each member state's threshold and links to state guidance. Check the current figure on the state's own website rather than relying on a third-party list.
Sales outside Amazon
Marketplace facilitator laws cover sales made through the marketplace. If you also sell through your Shopify store, your own website or wholesale accounts, you are generally responsible for those sales yourself. CDTFA, for example, says a marketplace seller that makes sales not facilitated by a registered marketplace facilitator "may have a registration requirement with CDTFA."
Zero-dollar and informational returns
Holding a permit usually means filing returns on the schedule the state assigns, even when you owe nothing. Washington's Department of Revenue states: "If you do not have business activities during your filing period, you must still file your return by the due date."
When Amazon has already collected the tax, the return often reports your sales and then removes the marketplace sales from tax due. Washington tells registered marketplace sellers to select the deduction "Gross Sales Collected by Facilitator" and enter their Washington sales made through a marketplace. The result is a return that shows sales but little or no tax due, often called a zero-dollar return. Put every filing date in a calendar as soon as a permit is issued.
Permits and resale certificates go together for wholesale buyers
Wholesale suppliers usually ask for a resale certificate before selling to you without sales tax, and that certificate is often tied to your sales tax registration.
In California, CDTFA says a valid resale certificate must include "the purchaser's seller's permit number or an explanation stating why the purchaser is not required to hold a seller's permit," a description of the property and a statement that it is purchased "for resale." Other states use their own forms and rules. ECOMHUTSY provides resale certificate and tax exemption certificate support where state rules allow.
How to register
The general steps are similar in most states:
- Confirm where you have nexus. List the states where you store inventory, have people or property, or pass economic thresholds.
- Gather business details. Legal name, entity type, federal EIN, addresses, owner details and expected sales.
- Apply on the state revenue website. Each state runs its own registration portal and sets its own fees.
- Consider the SST Registration System. The Streamlined Sales Tax Registration System lets you register in all or selected member states with one application, and there is no fee to register through it. You must still register only where you meet a state's nexus rules.
- Set up your filing calendar and keep permits, certificates and returns in one place.
Processing times vary by state, so register before you need to collect tax or buy wholesale.
Non-US sellers with a US LLC: what changes and what doesn't
Owning the LLC from outside the US does not change the state rules. A state looks at the business's activity in that state: inventory, sales and other presence. CDTFA's fulfillment-center guidance applies to sellers located outside California, for example.
What changes is the setup work. You need the entity and EIN in place first, and every registration should use the same legal name and address as your formation documents. If you have not formed your entity yet, start with US LLC formation.
Sales tax permit checklist
| Situation | Likely obligation | Action |
|---|---|---|
| Sell only on Amazon, no inventory or presence in the state | Often no permit needed where Amazon collects, but rules vary | Confirm on the state's marketplace seller page |
| FBA inventory stored in a state | Physical presence may require registration | Check inventory locations; register where required |
| Sales into a state pass its economic threshold | Registration may be required | Check the state's remote seller guidance |
| Also sell on Shopify, your own site or wholesale | Collect and remit on non-marketplace sales | Register and file in nexus states |
| Buying inventory from wholesale suppliers | Resale certificate usually needed | Register for a permit, then issue certificates |
| Permit already issued | Returns due each period, even with no tax due | Set a filing calendar; report facilitated sales as the state instructs |
This is not tax advice
This is general information, not tax or legal advice. Sales tax depends on each state's laws, your sales channels, where your inventory sits and how your business is set up. Rules and thresholds change. Before registering, filing or deciding not to register, confirm your position with the relevant state tax agency or a qualified sales tax professional.
Frequently asked questions
If Amazon collects sales tax, why would I need a permit?
Amazon's collection covers marketplace orders. A permit may still be required because of your own connection to a state, such as stored inventory, or because you sell through other channels.
Does FBA inventory create nexus in a state?
It can. Washington counts inventory held by a marketplace facilitator as physical presence, and California treats out-of-state sellers that store inventory in a California fulfillment center as engaged in business there.
What is a zero-dollar return?
A return filed for a period in which you owe no tax, for example because Amazon collected the tax on all your sales in that state. Registered sellers usually must still file it by the due date.
Do I need a permit if I also sell on Shopify?
Probably, in states where you have nexus. Marketplace facilitator laws cover marketplace sales, so you are generally responsible for collecting and remitting tax on sales through your own store.
Do non-US sellers with a US LLC need to register?
State rules look at the business's activity, not the owner's residence. If the LLC has nexus in a state, it may need to register there.
Map your registrations with us
Not sure where you have nexus? Send a compliance inquiry, and our team will map your registrations and confirm scope and pricing for sales tax license registration and our wider US tax and compliance services for sellers.
Not tax or legal advice. Information reflects publicly available Amazon, state and Streamlined Sales Tax guidance as of October 2026 and may change.
Sources
- Amazon, Marketplace Tax Collection: https://www.amazon.com/gp/help/customer/display.html?nodeId=202211260
- California Department of Tax and Fee Administration, Tax Guide for Marketplace Facilitator Act: https://cdtfa.ca.gov/industry/MPFAct.htm
- California Department of Tax and Fee Administration, Fulfillment centers: https://cdtfa.ca.gov/industry/fulfillment-centers
- California Department of Tax and Fee Administration, Publication 103, Valid resale certificates: https://www.cdtfa.ca.gov/formspubs/pub103/valid-resale-certificates.htm
- Washington Department of Revenue, Physical presence nexus: https://dor.wa.gov/education/industry-guides/physical-presence-nexus
- Washington Department of Revenue, Marketplace sellers: https://dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-sellers
- Washington Department of Revenue, Tax returns (filing with no business activity): https://dor.wa.gov/manage-business/my-dor-help/tax-returns
- Streamlined Sales Tax, Sales Tax Registration (SSTRS): https://www.streamlinedsalestax.org/for-businesses/sales-tax-registration-sstrs
- Streamlined Sales Tax, Remote seller FAQs and state guidance: https://www.streamlinedsalestax.org/for-businesses/remote-seller-faqs
