Some states consider Selling on Amazon (SOA) fees, such as per item, order, and referral fees, as taxable. Similarly, some states consider Fulfillment by Amazon (FBA) inventory prep fees, such as bubble wrap, polybag, tape, and label fees as taxable. To comply with state tax laws, Amazon.com collects and remits applicable sales tax when a taxable fee is charged.
Amazon offers many services and programs to sellers and a particular fee taxability depends on the state tax rules where your business is located or where an FBA service is performed.
To understand the different fees Amazon charges, go to our fee schedules:
Services and seller fees vary greatly among programs available to our sellers, and thus we cannot address every situation. However, Amazon will follow local and state tax rules that may apply to any seller fee you pay. If tax is charged on a seller fee, it will be reflected on your transaction detail page.
Tax rules can change frequently, and the chart provided below is a general reference to some fee taxability scenarios you may experience. This chart should not be considered tax advice or solely relied upon for fee taxability. If you have questions, consult your tax advisor.
|U.S. State||Selling on Amazon (SOA) fee (based on your business location)||FBA inventory prep fees (based on fulfillment center location)|
|Arizona||Non-taxable, except subscription fee is taxable - state||Taxable: state + local|
|Connecticut||Taxable, reduced 1% state tax||Taxable: state|
|District of Columbia||Taxable: state||Non-taxable|
|Hawaii||Taxable: state + local||Non-taxable|
|Illinois||Non-taxable||Taxable, only 50% of fee total is taxed: state + local|
|South Dakota||Non-taxable: order related fees* Taxable: non-order related fees** state + local||Non-taxable|
|West Virginia||Taxable: state + local||Taxable: state + local|
|* Per-order related SOA fees are typically charged as a result of a sale to a customer (for example, the referral fee, variable closing fee, and other per-order item fees). ** Non-order related SOA fees are typically charged as a result of a program, service, or subscription you elect to participate in (for example, monthly subscription fee, program fee(s), advertising fee(s), etc.).|
The following examples illustrate how the sales tax will be calculated:
In most non-US countries, Selling on Amazon (SOA) fees and/or Electronically Supplied Service (ESS) are typically defined as remote services. When selling on an Amazon store outside your home location, remote service fees may be subject to your home location’s tax rules.
Tax rules and regulations are country specific. Go to your VAT information page and search VAT, GST, or your country name in Seller Central help to locate additional information.
If you receive a refund of seller fees paid, any applicable tax originally charged on the seller fee will also be refunded at that time.
At this time, we are unable to automatically process a business exemption for a taxable seller fee. If your business has an exemption you would like Amazon to consider, you may contact Selling Partner Support to provide details about your exemption, how it applies to a taxable seller fee, and a reference to the state rule supporting your inquiry.
When you purchase FBA inventory prep services, the service could be performed at one of our many fulfillment centers across the United States. With that in mind, there is no option to opt out of a service based on that service being taxable.
Invoices are not generated for US sales tax on seller fees. However, if any tax is charged on your seller fees, it is always reflected with your transaction details.
Amazon.com began collecting sales tax on seller fees beginning June 1, 2019. Tax will be collected based on the latest state law and administrative guidance. If you have questions, consult your tax advisor.