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Amazon sellers must be able to identify three variables: where the seller has a business presence or tax nexus, who collects the tax and how, and how the tax remittance process works. Tax remittance, or the process of sending collected taxes to the government, is one of the most challenging aspects of selling a good, especially for small businesses. This is because remitting tax can be time-consuming and easy to get wrong. Sellers are encouraged to use third-party software solutions to help ensure taxes are made in full and on time, or even consult a tax advisor to sift through the legalese.
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