MPF is commonly defined as a business that contracts with third-party sellers to “facilitate” the sale of physical property, digital goods, and/or services owned and supplied by the third party through an online store or “marketplace.” Based on this definition, Amazon is a marketplace facilitator.
MTC is a common term Amazon uses for marketplace facilitator laws that identify the MPF as the party responsible to collect and remit sales and use taxes and/or regulatory fees on products shipped to customers in those jurisdictions (state, county, city, district) that have enacted such laws.
All US States with a sales and use tax have enacted MPF/MTC laws. Missouri’s laws go into effect on January 1, 2023.
There are some local jurisdictions where state MPF/MTC laws do not apply such as Colorado Home Rule Cities, some Alaska cities and boroughs, and Illinois retail occupation tax prior to December 31, 2021. Use the hyperlinks provided for additional information about each state.
Click the Certificate of Collection to download a state specific form.
|Nevada||Certificate of Collection|
|South Dakota||Certificate of Collection|
Other state forms (such as AZ Form 5020, CO Form DR1290, CT Form DRS-055, MA Form ST-16, New York ST-150) are not provided by Amazon as the Amazon Business Solutions Agreement, corresponding help content, and payments reporting satisfies the state requirement of publishing explicit information regarding Amazon’s responsibility to calculate, collect, and remit sales and use tax on product sold to customers their jurisdictions.
MTC applies to product sold to buyers in jurisdictions (state, county, city, district) that have enacted MTC tax legislation. By selling on Amazon, sellers agree to automatic MTC irrespective of their location, volume, or quantity of sales made by the seller, or use of Amazon’s Tax Calculation Services for non-MTC jurisdictions or MTC excluded products and services.
We encourage you to work with your tax professional or tax jurisdiction to determine any impact to your business.
Amazon uses the product category and item description provided or selected when creating a product listing to determine if tax or fees apply to product you sell.
Some jurisdictions consider a regulatory fee as taxable for sales and use tax. Some jurisdictions do not. When applicable, Amazon will calculate, collect, and remit sales and use tax on a fee under the MTC laws.
Sellers are responsible for their tax calculation, collection, and remittance obligations on sales of products to a buyer in a non-MTC jurisdiction, regardless if supported by our service.
If you participate in Tax Calculation Service (TCS), supported and configured jurisdictions will apply when MTC rules do not. Non-MTC regulatory fees are not currently supported by our service. See your Tax Settings, Tax Calculation Service help page, and Tax Calculation Services Terms for additional information.
You may continue to have a reporting obligation for both MTC sales and use taxes and regulatory fees Amazon calculates, collects, and remits on your product sales.
Amazon will remit MTC taxes according to each tax authority legislation, as the MPF/taxpayer. You do not need to remit taxes and fees Amazon has calculated, collected, and remitted and identified as MTC in your payments reporting (see Seller Account Reporting information below).
Amazon is only responsible for taxes and fees under MTC law. Amazon is not responsible for filing taxes on your behalf, including any income or gross receipts taxes that may be due on your sales into a state.
If you have double remitted MTC sales and use tax and/or fees from your Amazon orders, you will need to work with your tax advisor and/or state to determine your refund options.
Yes, in the US, MTC rules are subject to the tax rules and legislation where the buyer is located.
If Amazon determines it has an obligation to calculate, collect, and remit taxes and/or regulatory fees on your products, MTC amounts collected from the buyer will be shown with your payments reporting.
Typically, you do not need to take action in your seller account for MTC. If you use Tax Calculation Service, your existing tax calculation settings will not apply when MTC does.
Seller Central payment reporting will automatically reflect Amazon’s responsibility when MTC applies.
Sellers may continue to have a responsibility for tax and regulatory fees on sales of products to a buyer in a non-MTC jurisdiction and/or for product types or fees that are not supported by our service.
Amazon uses your listing detail and category information to determine taxability of your product when MTC applies. An unexpected product taxability behavior may occur if your product listing(s) are not up-to-date.
If a buyer contacts you about an incorrect tax calculation, see Who handles a buyer tax-only refund request on orders.
We recommend you regularly review and update the following information in your account settings:
You do not need to edit your tax settings for an MTC State. An MTC State with non-MTC jurisdictions supported by Amazon will be updated and editable in your Tax Settings as soon as support becomes available.
Currently, regulatory fees unrelated to a Marketplace Tax Collection rule, are not supported by Amazon. Your tax professional can help you understand regulatory fee obligations you or your business may have.
Yes, your payments reporting is a “statement”.
Once an order with MTC is finalized, any MTC tax or regulatory fee amounts Amazon remits will be represented in your order detail pages and downloadable payments reporting. Reports may use various attributes; however, the following applies:
Additionally, professional sellers have access to jurisdictional tax rates and totals in their Marketplace Tax Collection Report. Select this report when generating a sales tax report in the Tax Document Library. See Sales Tax Information in Seller Reports for other tax report types and information.
Any remaining tax amount (if any) not deducted for MTC is disbursed to you with your normal order earnings for you to remit to the appropriate tax authority.
On Seller Central, go to Reports and select Payments to get started.
Amazon may accept an ATEP enrolled buyer exemption for applicable MTC jurisdictions. The related exemption document will not be available to download when MTC applies.
Your Tax Settings ATEP enrollment selection and associated exemption document availability will continue to apply on non-MTC transactions where your tax settings are used. For additional information, see How ATEP Works.
No, Amazon does not apply the TCS fee for MTC calculations.
Tax calculations on product sold to buyers in non-MTC jurisdictions will use your configured tax settings and any applicable service fee will apply to those calculations.
No, there is no option to opt out.
No, there is no option to restrict sales to specific destinations supported by the Amazon store for tax reasons.
Sellers are responsible to answer buyer tax-only refund requests on:
Amazon Customer Service will answer buyer tax-only refund requests on: