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This article applies to selling in: United States

Tax calculation services

Our tax calculation services calculate U.S. sales and use taxes for all 50 states and the District of Columbia, and certain related local tax jurisdictions, based on seller-determined calculation settings and any related information we request. Our services do not calculate federal, state, or local product-based excise or similar gross receipt taxes (for example, a special fur clothing tax in Minnesota). Our services do calculate some taxes that are labeled as excise or gross receipt taxes, but that are commonly acknowledged to be sales and use taxes (for example, in New Mexico and Hawaii).

Amazon uses a third-party system, Vertex, to support tax calculations that are part of our tax calculation services.

Our services include support for the following tax calculations and related functions:

  • Sales and use tax rates (including periodic updates)
  • Sales and use tax area ID assignment (jurisdiction identification)
  • Sales and use tax jurisdiction determination (sourcing)
  • The ability to select a seller-defined default product tax code
  • The ability to specify a custom rate for each state
  • The ability to specify tax collection obligations for orders at the state, county, city, and district level for each of the 50 states and the District of Columbia
  • Shipping and handling taxability support
  • Pre-populated product tax codes, such as for clothing, books, food, and computers, that allow sellers to designate the taxability of their offers
  • Item-level tax calculation details
  • For participants in the Amazon Tax-Exemption Program (ATEP) only, Tax Exemption Certificate support and storage

As between the parties, you will be responsible for the collection and payment of any and all of your taxes. Except for orders destined to Marketplace Facilitator states where Amazon is required to collect and remit tax. Any and all fees payable by you pursuant to this Agreement are exclusive of all sales, use, and similar taxes, and you will pay any taxes that are imposed and payable on such amounts. Except as otherwise provided in this Agreement, you agree that Amazon is not obligated to determine whether taxes apply, and Amazon is not responsible to collect, report, or remit any taxes arising from any transaction where we are not responsible to do so. However, if a taxing authority requires us to pay any of your taxes, you will promptly reimburse us for the amounts paid. If the product is shipped from outside your elected country, the recipient of the product might be required to pay, upon delivery, an amount related to assessed sales, goods and services, use, excise, import, value added, or other taxes or duties. Such taxes or duties, if any, are in addition to the sales proceeds that Amazon collects.

See also

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