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Tax collection settings out of date with current rates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
Register in nexus states
Each state where you have nexus needs registration. Amazon collects marketplace facilitator tax in many but not all.
- 2
Verify VAT obligations for EU sales
OSS (One-Stop Shop) for distance sales over €10K. Standard VAT registration for warehouse stock.
- 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
Why wait? Start free.
See your products rewritten in 60 seconds. Add a card only when you go live.
- Start free, no card: import your catalogue and run the feed audit
- 10 free AI credits to see your product titles rewritten
- Go live with a 7-day free trial of Growth ($29/mo) or Pro ($49/mo)
- Pay-as-you-go AI credits after the free 10, from $5