How do I collect the right amount of taxes on Amazon?

Amazon has built-in sales tax collection functionality that you need to enable and configure on your own.

  • Our app then allows us to download your order history and report on the sales tax you're collecting via Amazon and then we assign the collected taxes to the proper jurisdictions for each state to aid in filing.

We've put together a list of settings you can mirror to show you how to turn on Amazon tax collection at the end of our guide.

  • After turning on tax collection, it's also important that your PTC's are set up correctly to reflect whether the items you are selling are taxable or not.
  • In addition to turning on tax collection, you'll determine the specific taxability for your items by making sure your Product Tax Codes (PTC) accurately reflect the item category.

If you've turned on tax collection inside Seller Central using the table at the end of our FBA guide and Amazon isn't applying taxes to your sales, we would recommend reaching out to Seller Central support as soon as possible to ask them why they haven't started collecting taxes yet.