What is the Amazon Tax Free Program?
The Amazon Tax Exemption Program (ATEP) was launched in April 2016. The program allows buyers to purchase tax-free goods from sellers participating in the program by providing tax exemption certificates. Once sellers register to join ATEP, Amazon will not collect taxes on buyers’ purchases of duty-free goods, and sellers themselves can obtain buyers’ tax-free certificates directly on the seller platform.
How to join Amazon's tax-free program?
1. Go to Tax Settings in Seller Central.
2. Click to view/edit your tax collection obligation settings, shipping and handling fee settings, and gift wrap tax settings.
3. Select the "Sign up for Amazon's tax-free program" checkbox.
4. Select the checkbox at the bottom of the page to confirm making this change.
5. Click the [Check Changes] button.
6. Select all check boxes to confirm that you have checked these changes.
7. Click the [Confirm] button.
Once you sign up to join ATEP, Amazon will not collect taxes from buyers who purchase duty-free goods, and you will be able to obtain the buyer's tax exemption certificate directly on the seller platform. For more information, go to Obtaining a Tax Exemption Certificate.
How Amazon’s tax exemption program works:
1. Many organizations qualify to purchase goods free of sales tax. Buyers who enroll in ATEP can purchase sales tax-free merchandise from Amazon.com LLC and its affiliates and participating sellers.
2. The ATEP registration tool guides buyers through the registration process, during which they must provide their organization’s tax exemption type (which indicates that they qualify for the tax exemption) and answer supplemental questions required to obtain the tax exemption. A tax exemption certificate will then be created by us or uploaded by the buyer.
When a buyer purchases tax-free goods from a seller participating in the program, ATEP will provide the seller with a tax-free certificate containing the buyer’s tax-free information. Information on tax exemptions for your purchases is available in the Tax Document Library on Seller Central. For instructions on accessing your tax exemption documentation, see the Obtaining Tax Exemption Certificate help page.
3. If the buyer cannot enjoy tax exemption when purchasing goods but makes relevant requests, the problem will still be solved by refunding the tax after placing the order. By participating in ATEP, you agree to accept tax exemption information or certification provided by buyers and their election of tax exemption for purchases. You are solely responsible for your use of ATEP and for complying with all applicable laws and regulations regarding the acceptance of tax exemption certificates.
4. You will not be able to download the buyer's tax exemption certificate for tax-free orders shipped to states that have enacted marketplace tax laws. Sales tax exemption and payment obligations for orders will be borne by Amazon, regardless of the delivery type.
This is the end of the information about Amazon's tax exemption program. If you want to learn more about Amazon's tax exemption program, please continue to pay attention~
