Before you set up tax calculation services, ensure the following:
You have obtained a state tax registration number for each state you intend to
enable a tax calculation. Refer to State Tax Registration
Numbers for more information.
You have reviewed and understand how a product tax code impacts tax calculations
on your orders. Refer to Product Tax Codes for more
You understand the impact of downgrading from a Professional Selling plan or
closing your account, as it will cancel your enrollment for tax collection
services and your corresponding tax settings. Refer to Downgrade or upgrade and tax calculation
service for more information.
Follow the steps below to configure or modify your tax calculation settings:
In Seller Central, go to the
drop-down menu and click Tax Settings.
Skip Step 3 if you are a returning
Before proceeding to Step 4,
first-time users will want to do the following:
Review the Amazon tax methodology document. This document explains how Amazon
will make your tax calculations.
Review the available Product Tax
Codes. These are taxability rules that you can assign to individual
products and use as a default on all calculations.
Select a state:
For additional information, see the Marketplace Tax Collection FAQ.
To configure tax settings for a new state, add the state from the drop down
To modify existing state configurations, locate the state in the
If the state you select shows 'For all shipments to this state, Amazon
manages sales and use taxes', you will not be able to set jurisdictions.
State Tax Registration Number - For each state you select, a valid state tax
registration number is required to configuring taxing jurisdictions.
If you do not have a State Tax Registration Number for a state, you must
obtain one prior to enabling calculation for that state. Refer to the State Tax Registration Numbers for more
Jurisdictions to tax - Jurisdiction selection tells the system what tax rates to
look for when making calculations that Amazon supports.
The state jurisdiction is required to enable any other jurisdiction in a
Select all the jurisdiction (state + county + city + district) that you want
the system to make a calculation for once a rate is available from our
third-party service. For example, if only state and city are selected, only the
available state and city tax rate will be calculated.
Shipping & Handling and Gift Wrap taxability - select the box to enable tax
Optional Custom Rate assignment per state:
Use this option only if required, refer to Custom Rate for
This feature overrides any jurisdiction tax rate supplied by our service
provider and all product tax code rule assignments except A_GEN_NOTAX.
All calculations using this option will be made at the state level
To assign a custom rate to a state, enter a percentage value in the Custom
Rate (%) text box.
Configure a default Product Tax Code (PTC) - A PTC works with your jurisdiction
settings and applies tax rules to the tax calculation. The default PTC is used when
an offer does not have a PTC assigned to the item offer details. If you do not select
a default PTC, an item offer level PTC should be assigned. If neither are assigned,
the tax calculation result will be non-taxable using A_GEN_NOTAX value.
Select a default PTC from the drop-down menu. This will apply when a PTC is
not assigned on the item detail page.
If you do not want to configure a default PTC, select Don’t use
default PTC from the drop-down menu and assign item offer level
PTC to every listing.
The item offer level PTC on the offer detail page applies to the item it is
If a PTC assignment is not made at the default or item offer levels, Amazon
will use the always nontaxable PTC A_GEN_NOTAX value resulting in a zero
Refer to the Product Tax Code (PTC) page for more
Amazon Tax Exemption Program - To enroll in the Amazon Tax Exemption
Program, select the box next to ‘Enroll in the Amazon Tax-Exemption
Once you have configured your tax settings, click Save
While Amazon’s tax calculation services provide a means to
determine and apply sales and use taxes to orders, sellers are responsible for reviewing
and determining the following:
The correct PTC
All related information for their products
All tax documentation and payments to the appropriate taxing authorities for their
transactions except where Marketplace Facilitator
Legislation is in effect.
This applies to both Amazon-fulfilled and seller-fulfilled products. If you have
additional questions about tax calculation, we suggest seeking assistance from your tax