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Amazon FBA - Question of Nexus

Assuming our company has headquarters in PA and in the past had some (very little inventory) in CA in an Amazon warehouse, but did not collect sales tax. During that time, we sold out of our product and zero inventory was available in CA. Do we still have nexus? Does nexus in a state begin when inventory first appears in the state? What if we no longer have inventory in that state? Are we still liable for sales tax?

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Did CA claim Nexus?

What is "very little inventory"? Is that "little" in quantity or value? What were your sales into CA from all sources?

Where did those sales originate (E-com) or through some other method?

You may end up having to file sales tax, but I'd be more concerned about general business taxes since you had inventory stored in the state.

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