There's a lot involved in running an e-commerce business - from managing inventory to fulfilling orders - and in many ways, Amazon has simplified these steps for online retailers, especially through Fulfillment By Amazon. However, while Amazon can collect sales tax on a seller's behalf, it's the seller's responsibility to determine where that sales tax needs to be collected. Product taxability means the product you're selling on Amazon is eligible to be taxed, and typically any tangible object is subject to sales tax. However, depending on the state, some product categories - such as groceries, clothing, and textbooks - are taxed differently or not at all. While most states consider clothing taxable, others consider it nontaxable or only taxable at a certain price. For example, in Minnesota, clothing is tax-exempt except for accessories, fur items, and sports and recreational wear, and in New York, only clothing priced at $110 or less is considered nontaxable. Florida New Jersey South Carolina *California Tennessee Clearly, there are a lot of factors involved in Amazon sales tax, which can make the process of collecting and remitting sales tax seem daunting. While Amazon will collect sales tax on your behalf, you're responsible for properly establishing your sales tax settings, registering with the states your business has a presence in, and reporting and filing sales tax. If you have questions about sales tax, contact your state's taxing authority or an accounting professional. faux saint laurent bag