Amazon Tax Free Program (How It Works + More)
Let’s say you own a small business, run a nonprofit, or want to source for a federal government entity. In this case, Amazon is the perfect place to shop and save money.
But you may be wondering if your entity is eligible for tax exemption on your Amazon orders. If so, how do you register to ensure your purchases are tax-free?
Here’s everything I’ve found about Amazon’s tax-free program!
Amazon Tax Free Program
Amazon’s tax-free program allows a long list of eligible individuals and businesses to buy products from Amazon, its affiliates and third-party sellers tax-free. To join Amazon’s tax-exempt program, you must complete and submit information about your entity, which will be confirmed within 15 minutes of submission.
To learn how to join Amazon’s tax-free program and more, read on!
Who is eligible for the Amazon Tax Free Program?
Amazon allows individuals and businesses to qualify and make tax-free purchases.
That’s why Amazon has made it really easy to apply for a tax exemption with its Amazon Tax Free Wizard.
Additionally, the Amazon Tax Free Program allows you to make tax-free purchases on products sold by Amazon, Amazon affiliates, and third-party sellers.
How do you sign up for the Amazon Tax Free Program?
In order to be able to make tax-free purchases through Amazon, you first need to submit all necessary documents and other information to determine if you qualify.
In fact, Amazon has an entirely separate section within its corporate structure called the Tax Exemption Wizard, which provides easy-to-follow guidelines for filing tax-exempt forms.
Therefore, the first step in registering for a tax-free program with Amazon is to find the Tax Free Wizard website on Amazon. Then, you need to enter all the necessary information.
Some of the forms and information that Amazon requires you to submit to qualify for tax exemption include:
- The state or territory you wish to enroll in
- Institution address
- Your organization’s entity type
- Exemption Number or Exemption Form (if applicable)
After submitting the form, you will need to sign and accept Amazon’s terms and conditions. Amazon states that your waiver should take effect within 15 minutes of filling out the form.
There are also some forms that Amazon does not accept when applying for tax-exempt programs, including:
- Business Tax Permit
- company policy
- tax license
- IRS Decision Letter
- W9
Which products on Amazon are tax-free?
Products sold through Amazon, its affiliates, and third-party sellers will be eligible for tax exemption if you successfully enroll in Amazon’s Tax Exemption Program.
If the tax exemption doesn’t work when you try to buy something on Amazon.com, be sure to contact customer service right away.
Who Qualifies for Tax Free on Amazon?
There are several organizations that can qualify for tax exemption on Amazon. For example, some of the exemption types currently supported by Amazon include:
- charitable organization
- library
- educational institution
- federal government agency
- Non-profit organizations
- small companies
- a few more
Additionally, if you are a seller on Amazon, the company automatically enrolls you in the tax-exempt program.
If you are an Amazon seller and do not want to participate in the tax exemption program, you can opt out of the program by adjusting your Amazon seller account settings.
How do you edit your tax-exempt status on Amazon?
Amazon allows you to edit and update your exemption status, enable or disable exemptions, and add new exemptions at any time.
To manage your tax exemptions, first, go to your “Business Settings” and select “Tax Exemptions”. You can then select “Add” to get a new exemption.
If you would like to update your exemption, select “Edit” and change the information. If you wish to cancel your tax-exempt status, you can do so in this section as well.
Finally, click “Manage Permissions” to choose which groups can use the exemption, or which groups can apply for an exemption at the item level.
Does Amazon offer partial tax exemptions?
Amazon’s exemptions are either full or no exemptions, the company does not offer partial exemptions. However, some products are not eligible for tax exemption.
For example, the tax exemption may not apply to sellers selling in states that have not passed Amazon Marketplace Facilitator legislation.
If you have any questions about tax exemptions, please contact Amazon Customer Support at tax-exempt@amazon.com for assistance.
Are all taxes the same on Amazon?
Because Amazon allows qualified third-party sellers to offer products on Amazon.com, not all products are sold exclusively through Amazon.
That being said, the amount of tax included in your purchase total may vary depending on where you purchase the item.
Tax amounts can vary between sellers because Amazon allows its sellers to calculate their own sales tax collections.
If sellers do not wish to set their own tax amounts, Amazon offers a service that calculates the amount of tax a seller should pay based on product and location.
If you’re interested in learning more about tax information for third-party sellers, you can usually find it under “Policies” in your seller account.
To learn more about Amazon’s program, you can also check out our related posts on whether Amazon is an ethical company, the Amazon trade-in program, and which credit bureau Amazon uses.
in conclusion
Amazon allows small businesses, libraries, nonprofits, and several other entities to register and qualify for tax-free purchases.
To join Amazon’s tax-exempt program, you must fill out a form with the necessary information and agree to Amazon’s terms and conditions.
Once you’ve filled out the required paperwork, Amazon claims it only takes 15 minutes to confirm your tax-exempt status.
