FBA
Category: platform
Fulfillment by Amazon — Amazon stores, picks, packs and ships products for sellers.
Fulfillment by Amazon (FBA) is Amazon's logistics service where sellers ship inventory to Amazon's warehouses, and Amazon handles storage, picking, packing, shipping, customer service, and returns. FBA enables Prime eligibility and Buy Box advantages. For tax purposes, storing inventory in FBA warehouses creates physical nexus in that state/country, triggering sales tax/VAT registration obligations.
Examples
- • A Chinese seller using FBA in the US creates physical nexus in every state where Amazon stores their inventory, requiring sales tax registration in those states.
- • Amazon FBA in Germany requires sellers to have German VAT registration and a valid VAT number before inventory can be shipped to the warehouse.
- • FBA fees include monthly storage fees (based on cubic feet) and fulfillment fees per unit, both of which may include applicable VAT.