For Business

Taxes

Activate tax settings, add locations to specify where you need to collect taxes, configure your tax calculation method, and create tax categories and tax override rules

By default, your tax settings are not activated in Buy with Prime. You’re responsible for identifying your business’ sales tax obligations and for correctly configuring your business’ sales tax settings. This article doesn’t constitute tax, legal, or other professional advice. If you have questions, consult your professional tax service provider. Tax service providers can help you with identifying your business’ sales tax obligations and provide advice on how to configure your business’ sales tax settings.

When tax settings are applied to your business, sales tax is 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.

Apply taxes settings

Applying taxes doesn’t automatically start calculating and charging taxes for your customers’ orders. You must specify which locations need tax calculation and collection.

  1. Open the merchant console.
  2. Choose Settings, and then Taxes.
  3. To apply taxes at checkout, turn on Apply taxes.
  4. When prompted to apply taxes at checkout, choose Apply taxes.
  5. On the General tab, choose Manage locations & overrides to begin editing your tax region and adding locations to apply taxes to your orders.

Add locations

You need to add business locations for every state where you need to charge sales tax on your store’s website. You can select more than one location at a time.

  1. Open the merchant console.
  2. On the side menu, choose Settings, and then Taxes.
  3. On the General tab, choose Manage locations & overrides.
  4. Choose the Locations tab, and then Manage locations.
  5. Select locations where you want to apply taxes. You can choose up to as many as necessary. You can use the search box to quickly find the location that you need to select.
  6. Choose Confirm selection.
  7. Choose Save changes.

    Note: After you Confirm selection, your selected locations are added to the Locations table.

Configure tax calculation method

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

  1. Open the merchant console.
  2. On the side menu, choose Settings, and then Taxes.
  3. On the General tab, choose Manage locations & overrides.
  4. Choose the Locations tab, and then select the location that you want to edit.
  5. On the menu banner, choose Change tax rate. You can select more than one location to edit at the same time.
  6. Choose one of the following options:

    • Auto 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.
    • Manual and enter a tax rate 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 four digits after decimal point.
  7. Choose Save.
  8. Choose Save changes.

Create tax category

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.

  1. Open the merchant console.
  2. On the side menu, choose Settings, and then Taxes.
  3. After applying Taxes, choose the Categories tab, and then Create tax category.
  4. Enter the following general Information details:

    • Category name
    • Description
  5. On the Products section, choose Select products.
  6. Select products for the tax category, and then choose Save.
  7. Choose Create.

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

Create override

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.

Important: The Create override button will be inactive until you add at least one location and one tax category.

  1. Open the merchant console.
  2. On the side menu, choose Settings, and then Taxes.
  3. After activating Taxes, choose the General tab, and then Manage locations & overrides.
  4. Choose the Overrides tab, and then Create override.
  5. Select the location, tax category, and override rate, and then choose Create.
  6. Choose Save changes.

Tax service providers

Disclaimer: Buy with Prime is providing this tax service provider list solely as an informational resource. If you choose to retain a tax service provider, you will be contracting directly with that provider, which will be providing services to you at your direction. Buy with Prime does not endorse any tax service provider or their services.

The following tax service providers have experience working with ecommerce businesses:

For more information about tax service providers, go to the Amazon Service Provider Network.

Looking for something else?

FAQ