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This article applies to selling in: United States

How to refund tax

If a buyer qualifies for tax exempt status, they can request a tax refund. Buyers will request these refunds directly from you, the seller, according to the buyer Help content here.

In order to process a tax refund:

  1. Find the order in Manage Orders and click Refund Order from the Order Details page.
  2. At the top of the Refund order page, click Refund tax only.
    Important: Unless the order was fulfilled by Amazon or tax is managed by Amazon, you will not see the Refund tax only button. See the following section to verify your Fulfillment method and tax collection obligation for an order.
  3. Select Tax exempt buyer or Order from an unincorporated area.
  4. For Tax exempt buyer, choose an exemption reason.
  5. For Order from an unincorporated area, choose one or more of the jurisdictions that you will refund.
  6. Click Submit refund.

Verify your Fulfillment method and tax collection obligation for an order

If you are unable to issue a tax only refund, you can verify if the order was fulfilled by Amazon or shipped to a state where Amazon manages tax calculation, collection, remittance, and refunds.

To check the Fulfillment method and tax collection obligation:

  1. Go to the Manage Orders page.

    You should see one of the following options: Amazon or Merchant.

  2. In the Manage Orders page, check if there is a note next to the tax stating ‘tax is managed by Amazon’ or ‘tax is managed by Merchant’.

If the fulfillment method is Amazon or the note states ‘tax is managed by Amazon’, you can refer the customer to contact Customer Support.

If the fulfillment method is Merchant and the note states ‘tax is managed by Merchant’, the responsibility remains with you to issue refunds.

For more information regarding who handles a customer tax refund on orders, see the Marketplace Tax Collection FAQ.

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