Does 1099K include FBA sales from Canada and Mexico (but with inventory kept in US)?
I only sell through FBA and all inventory is kept in US fulfillment centers. I occasionally receive sales from Canada and Mexico which FBA ships automatically.
Are these sales included in my 1099-K?
6 replies
Steve_Amazon
Hi @Seller_KEE2ARQLz9RyA,
Steve from Amazon here, thank you for the post. While I am unable to provide specific tax advice, I have provided several resources below with more information on Amazon tax guidelines.
State Tax Registration Numbers
After review, if your question is still unanswered, I recommend that you create a case to Seller Support with your question and they can engage the Tax department.
Thanks,
Steve
Seller_xo4Akj7FBBnfC
HERE is a link to our post with details of what we learned when we sold in Canada and Mexico using 'Remote Fulfillment with FBA'.
We discovered that our 1099Ks did not include income and selling expenses outside of the US that had proceeds deposited in our US bank account that must be reported to the IRS.
To find income and selling expenses outside of the US, you'll need to change the country in the white drop-down box at the top-right of your Seller Central page, download each foreign-currency Summary Report, and convert those values to US Dollars by comparing the foreign-currency Transfers in each report to the corresponding US Dollar deposits reported in your bank statements.
Amazon's currency conversion rates fluctuate, and Summary Report transfers late in a reporting period may not appear in your bank statement until the next period, so correlating Transfers in the foreign-currency Summary Reports with our bank statements to calculate the correct conversion rates wasn't easy. We were able to spot the deposits in our bank statements that resulted from foreign-currency Transfers by the deposits' descriptive text (like “IAT Deposit…”).
HERE is a separate link that explains how to map the entries in your US Dollar Summary report to the amounts reported in your 1099K. You'd map your income and expenses from non- US sales that are missing from your 1099K the same way.
These steps are so complicated that I suspect most 'Remote Fulfillment with FBA' sellers would fail an IRS audit.
Our profits outside the US weren't worth the added bookkeeping headaches, so we dropped 'Remote Fulfillment with FBA' and now sell only in the US.
