This article applies to selling in: United States

Tax Calculation Services Terms

The following terms apply to the tax calculation services Amazon makes available to Marketplace Professional sellers (including Amazon Wine sellers).

Registration. You can register for tax calculation services by configuring your calculation settings, agreeing to the sales tax calculation terms, and providing us with the information we request for the jurisdictions where you have configured settings to calculate taxes and other transaction-based charges that Amazon supports. Failure to provide valid documentation upon request, or to cancel tax calculation settings when documentation is not available, may result in the suspension or removal of selling privileges.

Calculation Services. We will calculate sales and use taxes and other transaction-based charges supported by the functionality we make available based on your calculation settings and any related information we request. Other than these, the tax calculation services do not apply to any other taxes.

Tax Calculation Services Fees. If you use the tax calculation services, you will pay us 2.9% of all sales and use taxes and other transaction-based charges we calculate. We will retain these fees in the event of any refund on related transactions.

Product Tax Codes and Associated Information. We will make available a list of product tax codes and associated product taxability rules. For each of your products, you will provide to us, in the format and manner we require, a reference to one of our product tax codes and any related information we request. If you do not provide a reference to one of our product tax codes for a product, we will not calculate any tax amounts for your transactions for that product.

Remittance. We will remit to you the amounts we calculate through the tax calculation services according to the schedule on which we remit funds for your Marketplace Professional transactions. You agree to accept the amounts we remit to you as full satisfaction of our obligations in connection with the tax calculation services.

Calculation of Refunds. For products you fulfill, you are responsible for calculating refunds of all taxes and other transaction-based charges calculated through the tax calculation services and you will process them using functionality we make available through your seller account. For products we fulfill, we will calculate and process refunds of all taxes and other transaction-based charges calculated through the tax calculation services.

Tax Exemption. You may be automatically enrolled in the Amazon Tax-Exemption Program. If you continue participation in this program, sales will be treated as tax exempt when purchased by customers who have enrolled and provided us with tax exemption information. Some transactions that are not or cannot be exempted at the time of purchase may be addressed through a post-order refund of taxes charged.

Calculation of Refunds for Exempt Transactions. If you participate in ATEP and receive a customer request for a post-order tax-only refund for a seller-fulfilled order, you must communicate with the customer through buyer/seller messaging to determine the validity of their request. It is your responsibility to obtain, validate, and retain any necessary supporting documentation. If you determine the request is valid, you must process a refund for all taxes and other transaction-based charges calculated through the tax calculation services. If you decide not to grant a tax refund, you must inform the customer and provide your reason.

If you participate in ATEP and a customer seeks a post-order, tax-only refund related to an exemption for products fulfilled by Amazon, the tax will be refunded only if we receive supporting documentation that meets our requirements.

Your Responsibilities. You are solely responsible for your use of the tax calculation services, including ATEP. Your responsibilities include:

  • Understanding your obligation to calculate tax.
  • Selecting jurisdictions or optional custom rate assignments based on your obligation to calculate tax. If you assign a custom rate to calculate tax, you must in good faith set a rate that accurately reflects a jurisdiction’s actual sales or use tax rate.
  • Providing a valid tax registration number for each state or province where you have enabled calculation service.
  • Reviewing and determining the correct product tax code assignment for your products.
  • Maintaining documentation of all relevant information including documenting and paying all taxes remitted to the appropriate taxing authorities for your transactions.
  • Responding to customer requests for post-order tax-only refund requests, including reviewing supplied information and complying with all applicable laws and regulations related to tax-exempt transactions and tax calculations.

Amazon disclaims all responsibility for your use of the tax calculation services. Except to the extent Amazon makes specific services available to you:

  • (i) Amazon does not calculate or collect any product-based excise taxes or any fees or surcharges;
  • (ii) Amazon does not provide support for sales or use tax exemptions based upon the identity of any individual, corporation or other entity, or the intended use of a product by any individual, corporation or other entity; and
  • (iii) You are solely responsible for any non-U.S. taxes and duties (including their collection and payment).
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