Do I need to remit sales tax to states with automatic Marketplace Tax Collection?
You do not need to remit sales and use tax Amazon automatically calculated, collected, and remitted under Marketplace Tax Collection. Your Marketplace Tax Collection report will reflect the sales tax amount Amazon collected as a deduction in the Marketplace Facilitator or Marketplace Withheld Tax column of your reports.
Any tax that is collected using your Tax Calculation Settings or any tax amount deducted by Amazon that is less than the amount collected from the buyer remains the sellers responsibility to remit to the appropriate government authority and will be reflected in your Sales Tax Report.
Amazon does not report or remit taxes on behalf of any seller to government authorities. If you have double remitted sales and use tax from your Amazon orders to a state with Marketplace Tax Collection, you will need to work with your tax advisor and/or state to determine your refund options.
How does Amazon report taxes under Marketplace Tax Collection?
Amazon will report and remit sales and use tax automatically collected under marketplace facilitator legislation that is identified as such in your reporting options to the appropriate tax authority based on the requirements of each tax authority or jurisdiction rule. Amazon does not report or remit taxes on behalf of any seller to government authorities.
Will I receive regular statements of Amazon-collected sales tax?
Yes, your Payments report will continue to reflect sales and use tax collected on an order with a separate deduction for “Marketplace Withheld Tax” or “Marketplace Facilitator” (depending on the report) which represents sales and use tax Amazon automatically collected. Amazon will remit the deducted amount to the appropriate tax authority, based on the marketplace facilitator rules at the order destination.
You may need to add optional Marketplace Tax Collection columns on some reports. See your reporting options below for additional information.
What are my reporting options and how do I identify Amazon-collected sales tax?
Marketplace Tax Calculation details are available in the Tax Document Library, Marketplace Tax Collection Report. See Sales Tax Information in Seller Reports Help page for additional information.
For individual order details, use the Order Details or Transaction Detail pages. When Tax Collection Model equals Marketplace Facilitator and Tax Collection Responsible Party equals Amazon, sales tax was automatically collected by Amazon.
For a summary of multiple order details, use the Date Range Report or Order Report (orders you fulfill) and see the report specific information below.
Date Range Report
The Sales Tax Collected column reflects the amount of tax collected.
The Marketplace Facilitator Tax or Marketplace Withheld Tax (depending on the report version) column reflects the amount of tax deducted from order proceeds that Amazon will remit to the tax authority.
If an amount reflected in the Sales Tax Collected column is not fully deducted in the Marketplace Facilitator Tax or Marketplace Withheld Tax column, the difference remains the seller’s responsibility to remit to the appropriate government authority
The Tax Collection Model column will display Marketplace Facilitator when Amazon calculated, collected, and remitted sales tax on your order.
The Tax Responsible Party column will display Amazon when Amazon made the tax calculation.
Note: If the columns above are not visible in your Order Report, you can add them manually by clicking Add or remove order report columns. See Order Reports for more information.
Does Amazon charge me for Marketplace Tax Collection?
No, Amazon does not charge any fees for Marketplace Tax Collection. Tax calculations for orders to non-marketplace tax collection jurisdictions will continue to use your tax settings and any applicable service fee will still apply to those calculations.
Can I opt out of Marketplace Tax Collection?
No, there currently is no option to opt out.
Can I prevent Amazon from shipping to states or jurisdictions with Marketplace Tax Collection?
No, there currently is no option to restrict sales to specific states for tax reasons.
Who handles a customer tax-only refund request on orders?
Sellers are responsible for refund requests on:
Merchant Fulfilled Orders where tax was calculated using your tax calculation settings.
See the How to refund tax help page for additional information.
Amazon Customer Service will handle the refund request for:
Sales and use tax Amazon automatically calculated, collected, and remitted on your orders.
All Fulfillment by Amazon (FBA) orders.