In the second post of this series for foreign FBA Sellers, I talk about making sales and getting paid for them. Even as a non-resident and non-taxpayer, there still are certain obligations you have around reporting and collecting taxes.
Do you need a US bank account to be an Amazon FBA Seller?
Some would-be Sellers encounter what appears to be a stumbling block when starting up their Amazon business: a US bank account. Amazon requires a bank account on file to process your payments. Paypal is not an option. Nor Bitcoin :)
It is notoriously impossible to set up a US bank account without being physically present in the US, either as an individual or as a business. Even if you set up a US LLC or Corporation, the Owners must typically be physically present in a bank to open a business account.
The good news is that Amazon has set up their own system for making deposits to international bank accounts. It’s called Amazon Currency Converter for Sellers (ACCS).
It’s actually pretty cool - you can get paid in your existing local bank account, in your local currency. No international wire fees or bank restrictions on your account. Providing your account is in a country and currency supported by ACCS.
Fees for ACCS
Payouts from Amazon are converted at an exchange rate which is set by Amazon.
At this point, you’re ready to start creating your product listings. We outline that process in greater detail on other blog posts and our Crowdfunded to Amazon online course (it’s free, by the way!).
State Sales Taxes
Now, just because you’re not subject to US income tax as a foreign resident, does not mean that you’re not responsible for collecting and paying sales tax in the jurisdictions where your inventory is held. Most of the US States require businesses who have what’s known as a “nexus” in their state to collect sales tax from sales of goods purchased by residents of that state. This can be quite complicated for Amazon sellers who have inventory in several warehouses around the country. You should consult a tax advisor who’s familiar with US tax treatments. A good service to leverage to automate some of these requirements is TaxJar, which integrates directly with Amazon.
Don’t miss the other parts of this 4-part blog series on how to sell on Amazon as a non-US resident!
Part 1: Process for Setting up an Amazon Account as a non-US Resident
Part 2: Getting paid as a non-US Amazon FBA Seller (this article)
Part 3: Importing Products to the US to Sell on Amazon
Part 4: Beyond the Amazon America / US Marketplace