Taxes & Nexus States FAQ

Q: Do I need to set up nexus states for Amazon sales?

No. Amazon is a marketplace facilitators — it collects and remit sales tax on your behalf in all applicable states. The nexus states setting in PSS applies to your webstore tax collection only.

Q: What happens if I don't set any nexus states?

No sales tax will be collected on any webstore orders. This may put you at risk of non-compliance if you have tax obligations in any state.

Q: Can I set different tax rates for different states?

No manual rate configuration is needed for the webstore. TaxJar and Avalara automatically apply the correct rate for each jurisdiction (state, county, city) based on the customer's shipping address. For eBay, you can set one state and rate, or use your eBay tax table.

Q: I just opened a second warehouse in another state. What do I do?

Add that state to your nexus states list in Settings > Webstore > Shipping & Tax, then save. Tax will begin being collected on webstore orders shipped to that state.

Q: What about local taxes (city, county)?

TaxJar and Avalara handle local tax rates automatically. When a customer enters their full shipping address at checkout, the tax service calculates the combined state, county, and city tax rate. You do not need to configure local rates.

Q: My state has no sales tax. Do I still need to configure anything?

If your home state has no sales tax (Alaska, Delaware, Montana, New Hampshire, Oregon), you still need to set your origin address for accurate calculations on orders to other nexus states. You would not add your home state to the nexus list since there is no state-level tax to collect.

Q: Does PSS charge tax on shipping?

The taxability of shipping depends on the destination state's laws. TaxJar and Avalara determine this automatically based on the customer's shipping address and applicable regulations.

*NOTE*

If you have questions or clarifications on tax compliance, nexus states, and other tax rules, please consult a tax professional.