I have recently started to upload on merch and i want to know how the money is taxed. I usually ask for 18.99 with a profit of 3.13 is it taxed as a whole(18.99) or just my profit(3.13)?. Or is it done automatically because on 19.99 asking price the profit is 3.88 so it's not a 1 to 1 ratio and the system is doing some math to calculate the costs of the tee + the tax?
Also i don't live in the USA, so if the tax controlled by Amazon do i only need to post the yearly reports with my sales? Or if i need to pay them how do i do that?