Freight Forwarder Sales Tax Nexus: When Using a 3PL Creates Tax Obligations
Updated 2026-08-03
Using a freight forwarder, 3PL warehouse, or fulfillment center in a US state can create physical nexus for sales tax purposes, requiring you to collect and remit sales tax on sales to customers in that state. This applies even to foreign sellers using US-based prep centers for Amazon FBA shipments. The key factor is whether inventory is stored or business activities occur in the state.
Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
Does storing inventory in a 3PL create sales tax nexus?+
Yes, in most states, storing inventory in a third-party logistics (3PL) warehouse creates physical nexus for sales tax purposes. The landmark Wayfair decision did not eliminate physical nexus — it only added economic nexus as an additional trigger. Having inventory physically present in a state remains sufficient to establish nexus.
Do foreign sellers using US prep centers have nexus?+
Yes, if a foreign seller uses a US-based prep center (for labeling, packaging, or inspection before FBA shipment), the inventory stored at that prep center likely creates physical nexus in that state. The seller must register for sales tax permits and collect tax on in-state sales.
What about Amazon FBA inventory — does it create nexus?+
Yes, Amazon FBA inventory creates physical nexus in every state where Amazon stores your products. Amazon may move inventory between fulfillment centers without your explicit knowledge. Sellers must monitor their Inventory Event Detail report to track which states hold their inventory.
How do I know which states have my inventory?+
For Amazon FBA sellers, download the Inventory Event Detail report from Seller Central under Reports > Fulfillment > Inventory. For other 3PLs, request regular inventory location reports. You should also check inbound shipment tracking to verify delivery addresses.
Can I avoid nexus by not storing inventory in a state?+
Yes, avoiding inventory storage in a state prevents physical nexus from that activity. However, you may still have economic nexus if your sales to that state exceed the threshold (typically $100,000 or 200 transactions). You can also have nexus through employees, independent contractors, or business activities in the state.
What states are most commonly affected by FBA inventory nexus?+
Amazon operates fulfillment centers in over 35 states. The most commonly affected include California, Texas, Pennsylvania, New Jersey, Virginia, Illinois, Indiana, Kentucky, and Arizona. Sellers should monitor their Amazon inventory reports quarterly to stay current.
Continue checking
US Sales Tax Nexus for Online Sellers
When online and Amazon FBA sellers have to register for US sales tax, including economic nexus thresholds.
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A state-by-state reference of US sales tax economic nexus thresholds for remote and cross-border sellers, covering the $100k states, the $500k states, and the disappearing 200-transaction test.
Do Amazon FBA sellers have to collect US sales tax? (2026)
Whether FBA sellers owe US sales tax, how marketplace facilitator laws cover Amazon sales, and when FBA inventory creates nexus.