Suppose you own a small business, run a non-profit organization, or want to make purchases for a federal government entity. In that case, Amazon is an ideal place to shop to save money.
But you may be curious about whether or not your entity qualifies for tax exemption on your Amazon orders. And if so, how do you enroll to ensure your purchases are tax-exempt?
Here is everything I discovered about Amazon’s tax exemption program!
Amazon Tax Exemption Program In 2023
Amazon’s tax exemption program allows a long list of qualifying individuals and businesses to buy products from Amazon, its affiliates, and third-party sellers free of taxation as of 2023. To enroll in Amazon’s tax exemption program, you must fill out and submit information about your entity, which is confirmed within 15 minutes of submission.
To learn how to enroll in Amazon’s tax exemption program, and more, keep on reading!
Who Qualifies For The Amazon Tax Exemption Program?
Amazon allows both individuals and businesses to qualify and make tax-exempt purchases.
With that, Amazon makes applying for tax exemption very simple through its Amazon Tax Exemption Wizard.
Additionally, the Amazon Tax Exemption Program allows you to make tax-exempt purchases for products sold by Amazon, Amazon affiliates, and third-party sellers.
How Do You Enroll In The Amazon Tax Exemption Program?
To be able to make tax-exempt purchases through Amazon, you first will need to submit all the necessary paperwork and other information to see if you qualify.
In fact, Amazon has an entirely separate section of the company structure, called Tax Exemption Wizard, that provides easy-to-follow guidelines to submit a tax exemption form.
With that, the first step to enrolling in the tax exemption program at Amazon is locating the Tax Exemption Wizard website on Amazon. Then, you will need to enter all the necessary information.
Some of the forms and information Amazon requests you submit to qualify for tax exemption include:
- State or territory in which you wish to enroll
- Address of the organization
- Entity type of your organization
- Exemption numbers or exemption forms if applicable
After your form submissions, it’s required that you sign and accept Amazon’s Terms and Conditions. Amazon claims that your exemption should be active within 15 minutes of completing the forms.
There are also some forms that Amazon does not accept when applying for the tax exemption program, including:
- Sales tax permits
- Articles of incorporation
- Tax licenses
- IRS determination letters
What Products Are Tax Exempt On Amazon?
If you successfully enroll in Amazon’s tax exemption program, products sold through Amazon, its affiliates, and third-party sellers qualify for tax exemption.
If your tax exemption doesn’t work when you try to buy items on Amazon.com, make sure you contact customer service right away.
Who Qualifies For Tax Exemption On Amazon?
There are several organizations that can qualify for tax exemption at Amazon. For example, some of the tax exemption types that Amazon currently supports include:
- Charitable organizations
- Educational institutions
- Federal government institutions
- Non-profit organizations
- Small businesses
- And several more
Additionally, if you are a seller on Amazon, the company automatically enrolls you in the tax exemption program.
If you’re an Amazon seller and do not want to be in the tax exemption program, you can leave the program by adjusting your Amazon seller account settings.
How Do You Edit Your Tax Exemption Status On Amazon?
Amazon allows you to edit and update your tax exemption status, enable or disable tax exemptions, and add new tax exemptions at any point in time.
To manage your tax exemptions, first, go into your “Business Settings” and select “Tax Exemption.” Then, you can select “Add” for new exemptions.
If you want to update your tax exemption, select “Edit” and change the information. If you wish to remove your tax-exempt status, you can also do so in this section.
Finally, click on “Manage Permissions” to select which groups can use tax exemptions or which groups can apply for item-level exemptions.
Does Amazon Offer Partial Tax Exemptions?
Amazon’s tax exemption is all or none, and the company doesn’t offer partial tax exemptions. However, some products are not eligible for tax exemption.
For example, a tax exemption may not apply to sales made by sellers in states that haven’t passed Amazon’s Marketplace Facilitator Legislation.
If you have any questions about your tax exemption, contact Amazon’s customer support at email@example.com for help.
Are All Taxes The Same On Amazon?
Because Amazon allows eligible third-party sellers to offer products on Amazon.com, not all products are sold exclusively through Amazon.
With that being said, the amount of taxes included in your purchase total may differ based on where you buy the item.
Tax amounts can be different between sellers because Amazon allows its sellers to calculate their own sales tax collection.
If a seller doesn’t wish to set their own tax amounts, Amazon provides a service that calculates how much a seller should tax based on the product and location.
If you’re interested in learning more about a third-party seller’s tax information, you can usually find it on the seller’s account under “Policies.”
Amazon allows small businesses, libraries, non-profit organizations, and several other entities to enroll and qualify for tax-exempt purchases.
To enroll in Amazon’s tax-exempt program, you must fill out forms with the necessary information and agree to Amazon’s terms and conditions.
After filling out the required paperwork, Amazon claims it takes only 15 minutes to confirm your tax-exempt status.