If you’re unfamiliar with what the Amazon Tax Refund is, you may be curious as to what it is and how you’re able to request it.
Therefore, keep reading this guide about tax refund policies at Amazon in the US, UK, and Germany, in order to learn how to get a refund and other information I’ve discovered!
What Is the Amazon Tax Refund In 2023?
Sales tax refunds occur when Amazon charges exempt organization sales tax for a purchase in 2023. Specific non-profit and government organizations are tax-exempt and can be designated in Amazon’s ATEP program. Tax-free holidays are special occasions that retail locations don’t charge taxes on specific items, i.e school supplies or clothing. International countries have similar tax policies to the US.
In order to learn more about the Amazon tax refund policy, what it is, how to claim it, and other tips, keep reading for more useful information!
What Is an Amazon Sales Tax Refund?
When someone contacts Amazon for a tax refund, it’s related to sales tax and exempt status.
How Do I Request a Sales Tax Refund From Amazon?
Provided that you’re a customer exempt from sales taxes, contact Amazon customer service via email (firstname.lastname@example.org) with the order number to request the corresponding sales tax refund.
First, make sure to include all supporting tax exemption documents for the state or US territory of which your shipment was delivered. Since representatives cannot open any document, all documents are in PDF format.
Second, once the order has been received, email the documentation to Amazon. Coupled with a message formatted similar to this:
- Reason for refund request
- Order number (17 digits in this format: XXX-XXXXXXX-XXXXXXX)
- Acceptable documentation of exemption in PDF format
Once applicable documents have been verified by Amazon, processing the sales tax refund will begin.
What Are Considered Sales Tax Exempt Businesses and Organizations By Amazon?
According to the Tax Policy Center, the following types of businesses and organizations can be considered sales tax-exempt:
- Churches and religious organizations
- Nonprofit art museums and historical societies
- Nonprofit credit unions and labor unions
- Nonprofit hospitals and medical facilities
- Humane societies
- Public interest groups
- Social welfare groups
- Human services, such as Girl Scouts, Boy Scouts, or the YMCA
- Veterans and government facilities
- Scientific research institutions
How Can My Business or Organization Be Sales Tax Exempt at Amazon?
In order to be granted a sales tax exemption at Amazon, all non-government purchasers need to provide Amazon with a copy of their state resale certificate or other acceptable proof of the exemption.
For convenience, Amazon created a downloadable guide for documents required to be organized by state and the type of organization.
Even though the guide is thorough, not all information is available, so refer tax questions to local tax authorities or tax advisers for further guidance.
Submitted documents must be appropriately dated, signed, and accurate product descriptions to be accepted by Amazon.
All submitted documents must show valid state tax IDs on all permits to be eligible for the Amazon Tax Exemption Program.
If unable to provide proper IDs, the application will be denied and removed from the program with no refund issued.
Furthermore, Amazon cannot accept sales tax permits, articles of incorporation, tax licenses, or W9s.
Generally, tax is not applied to purchases made by the United States government.
To document that a sale has been made to an agent of the U.S. government, Amazon requires enrollment in the Tax Exemption Program (ATEP), so customers must provide them with one of the following:
- Federal tax ID certificate
- Certificate of exempt status or affidavit
- Government voucher
Notably, this exemption also includes purchases made with a government services administration (GSA) credit card in most states.
Although for the exemption to be honored by marketplace sellers, a GSA statement must also be completed and submitted.
However, the following 11 states require additional documentation, along with the ATEP for GSA purchases:
- West Virginia
Additional information regarding Amazon’s ATEP program can be found by following this link.
What Are Sales Tax-Free Holidays at Amazon?
In many locations, there are holidays where select taxable products are temporarily exempt from tax on specific dates.
For example, a “back to school” sales tax holiday may be enacted on these types of items before the new school year starts. Generally, during this time, families pay no sales taxes for clothing and backpacks.
Additional information on these location-specific tax-free holidays can be found on local websites.
Is Sales Tax Refunded on Returns at Amazon?
When a customer gets a refund, it’s for the item plus the sales tax paid on that item.
Essentially, it’s as if the purchase was never made to begin with.
Can My Amazon Sales Tax Refund Be Received on a Gift Card, Debit Card, or Credit Card?
As with any purchases, customers can refund their Amazon sales tax liability on a gift card or debit card instead of waiting for the refund to be issued in the mail.
Additionally, customers can get their Amazon sales tax refund via credit cards such as Visa and MasterCard.
What Is the Amazon Sales Tax Refund Policy in the UK?
If you live outside of the UK, you may not be familiar with the term VAT. Basically, it’s like a sales tax here in America, and Value-added tax or VAT is what’s paid in the UK when items are purchased.
Typically, Amazon.co.uk customers are subject to the same sales tax rules as Amazon.com customers.
However, customers outside the UK should be aware that final prices may change once shipped to account for the VAT variations in the delivery country.
An estimate of the VAT can be seen before shipping, and any other questions can be addressed to the marketplace seller.
What Is the Amazon Sales Tax Refund Policy in Germany?
As a member of the European Union, Germany and Amazon.de collect sales tax on behalf of the government and remit that money.
Although VAT rates vary with destination, the policies for sales tax are very similar to those found in the UK and the US.
Many are unfamiliar with the conditions that must be met before an exempt organization at Amazon can receive a sales tax refund. Upon delivery of the order, the customer can reach out to a designated customer service email for support.
However, before sales tax is refunded, Amazon must establish the organization’s tax-exempt status via the appropriate documentation.