A common question sellers bring to Amazon is if they should be calculating tax on their orders and how to do so. There are many different types of sales tax obligations, including calculating, collecting, remitting, and reporting. Your tax obligation as a seller in Amazon’s store is unique to your business, and you and your tax professional are the best suited to determine your tax obligations. You and your tax professional should discuss aspects of your business, including the products you sell and where you sell them to determine your tax obligations. In some states, Amazon, not you, is the tax responsible party as determined by state legislation. For orders destined to these states, Amazon will calculate, collect, and remit sales and use tax. When you do have an obligation to collect sales tax, most states require that you register with a tax authority before proceeding.

Amazon provides an optional tax calculation service to professional sellers selling in the US marketplace. Once you understand what your tax obligation is and you’ve registered with the appropriate tax authorities, you are ready to start setting up your tax calculation configuration for your listings.

Learn more about Amazon’s Tax Calculation Services