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  • Quick start guide: Learn more about taxes

    Important: Information on this page doesn't constitute tax, legal, or other professional advice. Don't use it as such. If you have any questions, consult your professional tax advisers. When tax settings are applied on your business account, sales tax will be assessed and calculated for each shopper’s order based on the settings, tax rates, and override rules that you've configured. You can manage tax settings from the Settings tab of the merchant console.

    Note: You're responsible for identifying your tax obligations. You’re responsible for correctly configuring your tax settings in accordance with your tax obligations. We don’t audit or review your tax settings, especially not within the circumstances of increasing tax compliance. You’re responsible for preparing returns, filing, and remitting taxes to government. We don't file or remit taxes to any government on your behalf.  

  • Getting started: Manage taxes

    Use the merchant console to activate tax settings, add locations to specify where you need to collect taxes, configure how tax should be calculated for each location, create tax categories and tax override rules.

    You can manage tax settings from the Settings tab of the merchant console. In the Settings tab, you can find Taxes. In Tax settings, you will encounter General and Categories tabs. Until you toggle on ‘Apply taxes’ in General tab, you won’t be able to view rest of tax settings and you won’t be able to access Categories tab. If you need to apply and collect taxes on any of your Buy with Prime offers, choose Apply taxes in General tab. Afterwards, you can configure for which locations you need to collect taxes in Edit region > Locations. You can create tax categories in Categories tab. Lastly, you can create and manage tax override rules in Edit region > Overrides.

    Apply tax settings:

    Note: As of today, selecting apply taxes does not on its own start calculating and charging taxes for your shoppers' orders. You must also specify which locations need tax calculation and collection.

    Step 1Open the merchant console.

    Step 2Choose Settings, and then Taxes.

    Step 3Choose Apply taxes.

    Step 4When prompted to apply taxes at checkout, choose Apply taxes.

    Step 5Choose Edit region to begin adding locations where you want sales tax applied. 
     

    Add location:

    Note: You'll need to add locations for every state where you need to charge sales tax on your store's website. You can select more than one location.

    Step 1Open the merchant console.

    Step 2Choose Settings, and then Taxes.

    Step 3Choose Edit region.

    Step 4Choose Select location.

    Step 5Select locations where you want to apply taxes. You can choose up to as many as necessary. Confirm selection in the dialog box. Tip: You can use the search box to quickly find the location that you need to select.

    Step 6Choose Save changes.

    Note: After you Confirm selection in the dialog box, your selected locations will be added to the Locations table.
     

    Configure tax calculation method:

    Note: For each location you add, you can configure settings for how tax should be calculated.

    Step 1Open the merchant console.

    Step 2Choose Settings, and then Taxes.

    Step 3Choose Edit region.

    Step 4Select Auto for a Location if you want Buy with Prime to automatically apply the sales tax rate that’s calculated from a third-party service provider based on each order’s information. The tax rates that are calculated include state and local jurisdiction taxes.

    Step 5Enter a tax rate in the provided tax box and don’t select Auto if you want to apply a manual custom tax rate for the orders that are being shipped to addresses in that given state. The tax rate that you can manually enter can have up to 4 digits after decimal point.

    Step 6Choose Save Changes.
     

    Add tax category:

    Note: Tax category allows you to group products that you would like to configure to follow the same unique tax rule. It’s your responsibility to understand how your products are taxed in the jurisdictions that you are responsible for collecting, filing, and remitting taxes.

    Step 1Open the merchant console.

    Step 2Choose Settings, and then Taxes.

    Step 3After applying Taxes, choose Categories.

    Step 4Choose Add tax category.

    Step 5Enter the General Information details, then choose Select products.

    Step 6Select products for the tax category then choose Save.

    Step 7Choose Add.

    Note: The tax category you've set for a product will apply to all of its variations (such as size or color).
     

    Add tax category override:

    Note: After you create a tax category, you need to create an override rule so that the sales tax rate that you set for the override is used for the product(s) in the tax category.

    Step 1Open the merchant console.

    Step 2Choose Settings, and then Taxes.

    Step 3After activating Taxes, choose Edit Region.

    Step 4Choose Overrides, and then Add Override

    Step 5Enter the Override information details, then choose Add.

    Step 6Choose Save changes.

     

Taxes FAQ

Get answers to common questions about the taxes in Buy with Prime.
  • Yes, the business address you set up for your account is one of the inputs for tax calculation. Make sure you complete the setup process with a current and valid address. For example, make sure you enter a correct zip code. If the zip code you enter does not match the state, there will be an error at shopper order checkout. To find the business address that you have on file, go to Settings>Account details>Business details.  


  • You can create and manage override rules for a tax category. You can add products that are subject to a tax exemption rule to the tax category, and then create an override. To add a tax category, go to Settings > Taxes > Categories. To add an override, go to Settings > Taxes > Edit Region > Overrides. Select the tax category, specify the location in which the override rule is applicable, and then enter the tax rate. You can create and manage override rules for a tax category. 

  • If you configure more than one custom tax rate for a product, the lowest configured tax rate will be applied at checkout. To avoid this, make sure that each product is configured to be associated with only one custom tax rate per state.

  • Yes, choose Auto at a location level to apply automated tax rates. If you want Buy with Prime to automatically apply the sales tax rate based on each order’s information, select Auto for a location. The automated tax rates that are calculated include state and local jurisdiction taxes.

  • Yes, you can manually apply rates at a location level and product level. To apply overrides at a location level, go to Settings > Taxes > Edit region. For the location that you want to apply manual rates, make sure that Auto is not selected and that the tax rate that you want to apply is entered in the provided text box. To apply overrides at a product level, go to Settings > Taxes > Edit region > Overrides. For the tax category with the product that you want to apply manual rates, Add Override, select the location and enter tax rate, then choose Add. Choose Save changes.

  • Automated tax rates from a third-party service provider are used for tax calculation. Tax rates are determined based on the applicable state and local jurisdiction (city, county, district) information.

  • You can apply manual rates or create override rules for these circumstances.

  • Customers can view sales tax on the following: checkout page, thank you page, order confirmation e-mail, order details page, and invoice.

  • Customers are refunded the sales tax amount that was charged at checkout using the original payment method.

  • Tax information is included in the merchant console. Go to Orders to learn how to export your orders CSV file if you need that information for tax filing purposes.

  • Yes, Buy with Prime has a feature to automatically apply certain tax overrides for products you put in a category you set up and name as auto-clothing. To set up this category, follow these instructions:

    1. Open the merchant console.
    2. Choose Settings, and then Taxes.
    3. After applying Taxes, choose Categories.
    4. Choose Add tax category.
    5. Enter the General information details with the category name as auto_clothing, then choose Select products.
    6. Select your applicable general clothing and footwear products for the tax category, then choose Save.
    7. Choose Add.

    The following tax rules will be applied to products in the auto_clothing category based on the following shipping addresses:

    • In Massachusetts, the tax rate will be 0% for any amount of the price $175 or less and the automated rate for any amount of the price over $175.
    • In New York, the tax rate will be 0% for any product priced less than $110 and the automated rate for any product priced $110 or higher.
    • In Rhode Island, the tax rate will be 0% for any amount of the price $250 or less and the automated rate for any amount of the price over $250.  

     

    Disclaimer: Information on this page doesn't constitute tax, legal, or other professional advice. Don't use it as such. If you have any questions, consult your professional tax advisers. 

  • No. Tax support resources don’t constitute tax, legal, or other professional advice. And any of the resources in merchant console or the knowledge center should not be used as such. Tax support and related information is strictly a resource to help you manage Buy with Prime tax settings. All tax-related questions beyond how Buy with Prime tax settings work, should be directed to your professional tax advisor.

  • No, Buy with Prime does not collect, file, or remit taxes to government agencies on your behalf. By selling through Buy with Prime, you’re responsible for identifying where you have obligations to collect, file, or remit taxes and performing such activities in accordance with those obligations.

  • If live access to automated tax rates isn’t available, sales tax for an order is calculated using a repository of average tax rates provided by the third-party service provider that is updated at least monthly. The average tax rate for each affected order is determined by the state of the shipping address.

  • Yes. To ensure that your tax settings are up-to-date and aligned with your current tax obligations, revisit your tax settings regularly. For example, you may need to start collecting taxes in a new state per state guidelines on sales tax nexus.


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