Affiliate Marketing Tips | Pay Attention to Sales Tax


hey it’s patti scharf CPA and co-founder
of catching clouds the leader in e-commerce accounting and today we’re
going to talk about affiliate marketing and what it has to do with sales tax now
if you’re selling on Amazon I want you to stick around to the end because I’m
going to give you some more information on sales tax that specifically applies
to you so let’s get started what is affiliate marketing affiliate marketing
is basically having other people promote your products for you so what where you
most commonly see this is on a website though they’ll usually have some kind of
a disclaimer that says hey these links our affiliate links and then they’ll
have links to a whole bunch of different products now the people who are selling
these products have off they have an affiliate program where anybody who
posts this link on their website if a sale is made with by somebody going and
clicking on that link then the person who posted the link they get a small
commission for helping to facilitate that sale so what does this have to do
with sales tax here’s the deal when you are talking about sales tax the very
first hurdle that you have to determine whether you are collecting and remitting
sales tax is whether or not you have Nexus you can learn more in this video
here and most commonly you’ll hear discussions in the news or wherever
about Amazon having your inventory in a particular warehouse and giving you
Nexus based on where it’s located but one of the things you don’t hear that
much about is the other thing that causes Nexus is salespeople and sales
people include affiliates so if you are trying to sell your product and you have
an affiliate program and somebody signed up in Alabama Alaska Arizona Arkansas
California Colorado all the way through the list
you now have Nexus in all of those different states and you legally have an
obligation to collect and remit sales tax if you’re selling products that are
subject to sales tax if you’re a really small seller you’re selling maybe a
couple hundred dollars a month or something like that
the states probably aren’t going to be chasing you down but if you have a
business that’s pretty big you definitely want to pay
attention to this issue because the bigger you get and the more sales you
make the bigger your sales tax liability may become so I highly recommend that
you start paying attention to that if you want more information about the
sales text reality for Amazon sellers please look down below for the link that
will take you to a webinar that we did giving you more information about that
if you’ve liked this video please like it comment share and if you haven’t
already please subscribe and I’ll catch you later

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