Delaware compliance for Amazon FBA sellers

Summary of research and final findings for: Delaware compliance for Amazon FBA sellers Key findings (concise): - Delaware has no state sales tax. That means there is no Delaware sales tax for sellers to collect on consumer retail sales at the state level. (See SalesTaxHandbook and Delaware Division of Revenue.) - Delaware does levy business-level taxes instead: a Gross Receipts Tax on business activity in the state (administered by the Division of Revenue / grossreceiptstax portal). This is distinct from sales tax and is charged to businesses on gross receipts from sales in Delaware. Check the Division of Revenue / Gross Receipts Tax portal for rates, filing requirements and registration. (See Delaware revenue & SalesTaxHandbook excerpts.) - Entity-level Delaware obligations if you form or register an entity in Delaware: - LLCs, LPs and GPs (domestic or foreign) must pay an annual alternative entity tax of $300.00; the tax is due on or before June 1 each year. There is no Annual Franchise Tax report requirement for LLC/LP/GPs but failure to pay results in penalties and interest. (See Delaware Division of Corporations LLC/LP/GP tax instructions excerpt.) - Corporations have franchise tax and annual report filing obligations (use Division of Corporations online services to pay/file). (See Delaware Division of Corporations site.) - Business licensing and registration: Delaware uses the One Stop portal for business registration and licensing (Create an account to register or renew business licenses). The Division of Revenue/One Stop handles business tax registration and licensing. (See One Stop and Division of Revenue excerpts.) - Nexus and Amazon FBA: Storing inventory in a state (such as in Amazon fulfillment centers) commonly creates sales tax nexus in many states. Tax guidance for FBA sellers notes that inventory stored by Amazon in a state can create nexus for sales tax purposes; sellers should determine where Amazon is storing their inventory and follow each state’s registration rules. When registering, TaxJar recommends using your principal business address in most cases and contacting the state if the registration system forces an in-state address entry. (See TaxJar excerpt.) - Marketplace facilitator rules: because Delaware has no sales tax, marketplace facilitator collection for Delaware sales is not applicable; however, FBA storage in other states can create nexus in those states where marketplace facilitator laws or nexus rules differ. Practical compliance checklist for Amazon FBA sellers (Delaware-focused): 1. Confirm whether Amazon stores any of your inventory in Delaware fulfillment centers. (Most sellers do not; still verify in Seller Central inventory placement reports.) If Amazon stores inventory in Delaware, that can create physical-nexus-triggering activity for many states’ sales tax rules. 2. Delaware sales tax: None. You generally will not register to collect Delaware sales tax because the state has no sales tax. (But check excise or local special taxes for specific products.) 3. Gross Receipts Tax: Determine whether your sales into Delaware or business activity triggers Delaware gross receipts tax obligations. Consult the Delaware Division of Revenue / Gross Receipts Tax portal for registration, rates, and return filing frequency. 4. Business license & registration: If you are conducting business in Delaware (for example, you have a physical presence, registered agent, or other nexus-triggering activities), use the Delaware One Stop portal to register and obtain required state business licenses and tax accounts. 5. Entity-level filings: If your company is formed or registered in Delaware: - LLC/LP/GP: Pay the $300 annual tax by June 1. (No LLC annual report required.) - Corporation: File Annual Report and pay franchise tax as required by the Division of Corporations. 6. Address for state registrations: Use your principal business address when possible. If the state system requires an in-state address and will not accept an out-of-state address, follow the state’s instruction (paper registration or contact the revenue department) as described by TaxJar guidance. 7. Maintain records and review inventory placement regularly: Keep records from Amazon showing inventory locations and shipments, and monitor Amazon’s inventory placement changes to detect when new nexus may arise in any state. 8. When in doubt, consult a tax professional: State rules differ and facts matter (inventory stored, in-state personnel, returns, etc.). For Delaware-specific tax filings, contact the Delaware Division of Revenue and/or Division of Corporations or use the One Stop portal. Next research steps (if you want me to continue): - Retrieve Delaware Gross Receipts Tax rates, filing frequencies, registration thresholds and sample return instructions from the grossreceiptstax portal and Division of Revenue pages. - Retrieve Delaware Division of Revenue instructions for online registration and business license requirements for out-of-state sellers. - Gather practical Seller Central steps to check inventory placement and how to export Amazon inventory-location reports.