{"id":12691,"date":"2023-04-10T17:00:42","date_gmt":"2023-04-10T17:00:42","guid":{"rendered":"https:\/\/synder.com\/blog\/?p=12691"},"modified":"2026-05-01T14:04:38","modified_gmt":"2026-05-01T14:04:38","slug":"managing-amazon-sales-taxes-with-synder","status":"publish","type":"post","link":"https:\/\/synder.com\/blog\/managing-amazon-sales-taxes-with-synder\/","title":{"rendered":"Managing Sales Taxes: How Synder Simplifies Amazon Sales Tax Collection"},"content":{"rendered":"\n

Amazon sellers or accountants alike, you know how challenging it is to collect sales tax. Find out how Synder simplifies Amazon sales tax collection.<\/em><\/p>\n\n\n\n\n\n\n\n\n

Come tax season, tax accountants get buried in paperwork and do their best to save the day for businesses of different sizes. But can you ease the strain and optimize tax filing for e-commerce companies with lots of sales? This is the question Travis K, an e-commerce accountant serving a couple of online businesses, has managed to answer. <\/p>\n\n\n\n

Recording Amazon sales tax correctly<\/h2>\n\n\n\n

Travis, who has been working with Amazon businesses for several years, knows first hand the challenges of Amazon sales tax collection and working with the Marketplace Facilitator Tax. This tax is collected and remitted on behalf of merchants by Marketplace Facilitators or Providers such as Amazon if orders are shipped to customers located in states or countries with similar taxes enacted. The purpose of this tax is to simplify the tax payment process for Amazon sellers as the trading platform helps with tax collection, that is withholds and remits taxes on their behalf.<\/p>\n\n\n\n

However, while the Marketplace Facilitator Tax may simplify tax payments for his Amazon client, Travis knows that the withheld taxes must still be accounted for in their books, just like sales. These taxes are considered expenses for the merchant and are inevitably associated with their business. Therefore, they must be tracked on the expense account to ensure accurate financial reporting.<\/p>\n\n\n\n

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As an accountant with a client who sells on Amazon, I came across an issue with recording the taxes paid by Amazon for the business. I was seeking an easy way to automate the process, but dealing with taxes proved to be quite challenging. The issue arises because taxes should ideally be recorded and paid out simultaneously, with the tax account functioning as a clearing account. Sales tax collection was a nightmare. Unfortunately, many tools were unable to process this correctly, with some even ignoring taxes entirely. As a result, I had to manually adjust the imported data in QuickBooks to ensure accurate recording of taxes.<\/p>\n<\/blockquote>\n\n\n\n

With the increasing number of sales and transactions, manually adjusting imported data in QuickBooks for his Amazon sellers became time-consuming and prone to errors. That\u2019s when, attending one of the conferences, Travis found out about Synder.
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