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    Taxes

  • 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 calculated for each order based on the 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. 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, make edits, create tax categories and tax override rules.

    Apply tax settings:

    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:

    Step 1Open the merchant console.

    Step 2Choose Settings, and then Taxes.

    Step 3Choose Edit region.

    Step 4Choose Add location.

    Step 5Choose a State*, and then Add in the dialog box.

    Step 6Choose Save changes.

    Step 7Choose Save.
     

    Add tax category:

    Step 1Open the merchant console.

    Step 2Choose Settings, and then Taxes.

    Step 3After applying Taxes, choose the Categories tab.

    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.
     

    Add tax category override:

    Step 1Open the merchant console.

    Step 2Choose Settings, and then Taxes.

    Step 3After activating Taxes, choose the Categories tab.

    Step 4Choose Edit Region.

    Step 5Choose the Overrides tab, and then Add Override. 

    Step 6Enter the Override information details, then choose Add.

    Step 7Choose Save changes.

    Step 8Review your changes and choose Save.

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 set up process with a current and valid address. 

  • 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 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 manual tax rate.

  • 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.

  • Yes, you can manually apply rates at a location level and product level.

  • Automated tax rates from a third-party service provider are used for tax calculation.

  • 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.

  • 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 the Categories tab.
    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. 

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