Some states consider Selling on Amazon fees, such as per item, order, and referral fees taxable services. Similarly, Fulfillment by Amazon (FBA) inventory prep fees, such as bubble wrap, polybag, taping, and labels are considered taxable in some states. To comply with state tax laws, Amazon.com collects and remits sales tax on some of these fees.
Amazon offers many services and programs to sellers and the fee taxability will depend on the location of your business or where the FBA service is performed and individual state tax rules.
To understand the different fees Amazon charges, see our fee schedules:
The chart below illustrates the different U.S. taxing jurisdictions in which a fee may be taxable. The sales tax rate will depend on the state rate plus local tax rates and when those rates apply will depend on the location of your business or where the FBA service is performed. State tax rules can change frequently and the information below may become outdated if states make changes to their laws.
|Country / Jurisdiction||Selling on Amazon Fees (based on your business location)||FBA Service Fees (based on fulfillment center location)|
|US – Arizona||Non-Taxable, except Subscription Fee is Taxable - State||Taxable – State + Local|
|US – Connecticut||Taxable – Reduced State 1% Only||Taxable – State|
|US – District of Columbia||Taxable – State||Non-Taxable|
|US – Hawaii||Taxable – State + Local||Non-Taxable|
|US – Illinois||Non-Taxable||50% of fee total is Taxable – State + Local|
|US – South Dakota||Taxable – State + Local||Non-Taxable|
|US – West Virginia||Taxable – State + Local||Taxable – State + Local|
The following examples illustrate how the sales tax will be calculated:
Some countries consider physical and electronically supplied services purchased from Amazon to be taxable. Amazon will use the information you supply in your seller account to determine if any particular fee is taxable and the appropriate VAT/GST/Tax rate to charge. Tax rules and regulations are country specific. See your VAT Information and/or search VAT, GST, or your country name in Seller Central help to locate additional information.
If you receive a refund for fees paid, any applicable tax on the refunded fee will also be refunded at that time.
At this time, we are unable to automatically process exemptions for taxable fees. If you have a tax exemption for your business, you may contact Selling Partner Support to request a tax only refund, based on your business exemption.
FBA services are performed on your items when you have elected to purchase these services from Amazon or when items are received that do not meet packaging and prep requirements.
No, you will not receive an invoice on the tax you pay on fees. Any order with a taxable seller fee will be reflected on the transaction details page of your Payments reports.
Amazon.com began collecting sales tax on fees beginning June 1, 2019. Our tax policies are continuously updated in compliance with State law.