Blocking tax

Fix “Tax compliance issue” on Amazon

Amazon's tax compliance review flagged the seller account. Could be missing tax registration in nexus states, incorrect VAT collection, or sales tax filing gaps.

What you see in Amazon:

Tax compliance issue

Tax registration gaps or incorrect VAT collection. Affects seller account broadly.

Register in nexus states. OSS for EU sales over €10K threshold. Update tax settings to current rates.

Top causes

  • 1

    Nexus reached in a state without tax registration

  • 2

    VAT registration missing for EU sales

  • 3

    Tax collection settings out of date with current rates

How to fix it

  1. 1

    Register in nexus states

    Each state where you have nexus needs registration. Amazon collects marketplace facilitator tax in many but not all.

  2. 2

    Verify VAT obligations for EU sales

    OSS (One-Stop Shop) for distance sales over €10K. Standard VAT registration for warehouse stock.

  3. 3

    Update tax rate settings

    Seller Central → Tax → verify all rates current.

Related fields

FAQ

Does Amazon handle US sales tax automatically?

For marketplace facilitator states (most US states now), Amazon collects and remits. For other contexts (FBA inventory storage triggering nexus), sellers handle their own registration.

Last reviewed: 26 May 2026

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