Amazon KDP & Nexus Tax Law Question

5 replies
Okay Warriors...my head is about to explode. I've spent hours searching for information with no real answer to my question.

As some of you know, I'm taking action. I've set up my blog in the Lupus niche, I'm working on some PLR articles and learning how to write sales copy. I can write, but I write information. I've never written for the purpose of selling anything. I've also outlined a kindle ebook.

My plan was to monetize the Lupus blog with Amazon and Adsense. No problem with the Adsense, but I had to slam on the brakes when it came to Amazon.

Amazon no longer likes Arkansas apparently, because of the Nexus Tax Law that I never heard anything about (how's that for burying my head in the sand?). Therefore, they don't want me to be their affiliate. That isn't my question - I really wasn't expecting to make a great deal of money from that blog anyway - I see that as more of an interest, and if Adsense can even come close to supporting it, that's fine, and I'll try to think of other ways to monitize it, although I'm not sure how if all affiliate programs stop allowing Arkansas residents to become affiliates.

But the Kindle issue is another story. Amazon did let me sign up as a publisher, using my Arkansas address. I just don't want to be surprised in the future. So, does anyone who lives in a state with the Nexus Tax Law in place, who is also a KDP publisher have any information that I should know about, before something jumps up and bites me in the arse? Is it safer to scrap the Kindle idea now and take another route?

I know some of you will suggest that I set up an LLC in another state, but I'm not sure how legal that is, how expensive it might be, or if I even have the energy...and that is a separate and more complicated issue anyway.

I really just need advice on KDP and how that affects authors in states where the Nexus Tax Law exists - that's all I can absorb for one day.

Any and all information and advice will be greatly appreciated.

Almost time for my nap!

Shyley
#amazon #kdp #law #nexus #nexus tax law #question #tax
  • Profile picture of the author joseph7384
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    • Profile picture of the author ShyleyMacFarland
      Originally Posted by joseph7384 View Post

      Hi Shyley,

      I'm from Chicago which is also a state that Amazon does not accept affiliates from but I am in fact a Kindle publisher which is totally different from being an Amazon affiliate.
      How is it possible that they will not accept us as affiliates, but will accept us as publishers without a problem? I am so confused :confused: Are our states going to make it impossible to publish through Amazon as well at some point?
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  • Profile picture of the author Amy Harrop
    I believe it has to do with sales tax on physical goods that Amazon sells. Most states (but not all) have a sales tax on physical goods and when people purchase those goods on Amazon, the state wants to collect tax.

    Kindle is digital publishing, and at least for now, most states (some do) don't collect tax on digital products. I'm predicting that this will change in the future though, as states want all of the tax revenue they can get.
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    • Profile picture of the author marciayudkin
      It has to do with the huge difference between being a seller and being a content provider.

      As an affiliate you are a seller, and the law in question says that you are operating a retail outlet in your state. Some states want to tax such retail outlets, and that's why Amazon doesn't want affiliates in those states.

      However, as an Amazon publisher, you are not the seller. Amazon (and its affiliates) counts as the seller. So whether you as a publisher are based in Illinois or Iraq is of no consequence when it comes to the sales tax issue.

      Marcia Yudkin
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      Check out Marcia Yudkin's No-Hype Marketing Academy for courses on copywriting, publicity, infomarketing, marketing plans, naming, and branding - not to mention the popular "Marketing for Introverts" course.
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      • Profile picture of the author cashcow
        Originally Posted by marciayudkin View Post

        It has to do with the huge difference between being a seller and being a content provider.

        As an affiliate you are a seller, and the law in question says that you are operating a retail outlet in your state. Some states want to tax such retail outlets, and that's why Amazon doesn't want affiliates in those states.

        However, as an Amazon publisher, you are not the seller. Amazon (and its affiliates) counts as the seller. So whether you as a publisher are based in Illinois or Iraq is of no consequence when it comes to the sales tax issue.

        Marcia Yudkin
        I don't think I can say it any better than Marcia. ^^^^^

        When you publish a book, you are just an author putting your book up on the Amazon platform. That doesn't create a physical presence for Amazon in your state like it does when you sell Amazon products as an affiliate through your business.

        Lee
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        Gone Fishing
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