Overview

Amazon's tax policies outline the responsibilities that third-party sellers carry when it comes to calculating, collecting, remitting, and reporting taxes on their sales. Whether you sell domestically or internationally, understanding these obligations is essential for staying compliant and avoiding costly penalties. This reference covers marketplace tax collection, Amazon's optional Tax Calculation Service, cross-border duties, and the key contractual terms sellers agree to regarding tax liability.

Key Points / What Sellers Need to Know

• Tax responsibility falls on sellers — Regardless of any tools or services Amazon provides, sellers are ultimately responsible for identifying their own tax obligations and ensuring proper calculation, remittance, and reporting of all applicable taxes.
• Amazon collects taxes in certain jurisdictions — In compliance with local laws, Amazon acts as the marketplace facilitator in specific locations, meaning it calculates, collects, and remits sales tax, GST, or VAT on orders shipped to those destinations on behalf of sellers.
• Tax Calculation Service is optional — Amazon offers sellers an optional Tax Calculation Service that can automatically calculate sales tax and other transaction-based charges on qualifying orders, though sellers must still handle remittance themselves.
• Cross-border sellers face additional duties — If you ship goods from a country different from where your fulfillment center or customer is located, you bear full responsibility for customs duties, import taxes, and related charges.
• Amazon does not report or remit taxes for sellers — Outside of its marketplace facilitator obligations, Amazon does not file tax returns or send payments to tax authorities on any seller's behalf.

How Marketplace Tax Collection Works

In an increasing number of jurisdictions, marketplace facilitator laws require Amazon to step in and handle tax collection directly. When Amazon acts as the facilitator, it calculates the appropriate national, state, or local sales and use taxes, goods and services taxes, or value added taxes on orders destined for those specific locations. Sellers do not need to take separate action for these transactions, as the tax amount is collected from the buyer at checkout and remitted by Amazon to the relevant tax authority. However, sellers should be aware of which jurisdictions fall under this arrangement, as their own filing obligations may still apply depending on local rules. Amazon provides documentation within Seller Central that lists the specific locations where it serves as the marketplace facilitator.