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This article applies to selling in: United States

Marketplace Withheld Tax

Important: Information on this page does not constitute tax, legal, or other professional advice and must not be used as such. You should consult your professional advisers if you have questions.

Based on the destination of your order, Amazon may be legally obligated to calculate, collect, and remit applicable national, state, or local sales or use taxes, goods and services taxes (GST), or value added taxes (VAT) (collectively referred to as Taxes).

Marketplace tax collection applies to all products, from all sellers, on all Amazon marketplaces, when an order is shipping to a jurisdiction (country, state, county, city, district) where Marketplace Facilitator laws have been enacted. All sellers must agree to automatic Marketplace Tax Collection, irrespective of their location, product or order origin, or the volume or quantity of sales made by the seller.

The buyer pays the Taxes collected by Amazon on the product sold. The collected amounts are reflected on your order details and order reporting with a deduction (using the reporting identifiers in the table below) equal to the amount of Amazon’s obligation to remit to the appropriate government authority. Additional information about the different taxes are available on the respective FAQ page links below.

Order Destination Reporting Identifier Information and FAQ
United States MarketplaceFacilitatorTax Marketplace Tax Collection FAQ
Mexico MarketplaceFacilitatorTax Mexico Marketplace Value Added Tax (VAT) Collection FAQ
Australia LowValueGoodsTax Australia's Low Value Imports FAQ
New Zealand LowValueGoodsTax New Zealand's Low Value Goods FAQ

Amazon remits the collected amounts to the appropriate government authority as Amazon, based on applicable law. If the taxes amount deducted by Amazon is less than the amount collected from the buyer, the difference remains the seller’s responsibility to remit to the appropriate government authority. Amazon does not report or remit taxes on behalf of any seller to government authorities.

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