Amazon is a global e-commerce platform. It taxes sellers on their worldwide sales, regardless of where they sell the item. When you sell an item on Amazon and send it to a customer in another country, the seller is still required to pay taxes on that sale.
Duty tax is the tax charged by the government on items that are sourced and sold by Amazon. When an item is ordered from Amazon, the company assigns a product code to it.
They will normally add this tax amount to Amazon sellers' local value-added tax (VAT).
Fortunately for Amazon sellers, there are many ways to reduce or avoid paying duty taxes.
This code is used to determine the applicable duty tax.
They calculate the duty tax as the difference between the manufacturer's sale price and the price Amazon sells the product at.
Furthermore, while certain items that are imported may be subject to other taxes (e.g., value-added tax), duty tax is typically only charged on a purchase’s final price – which does not apply to most products sold on Amazon.
Amazon sellers have to pay duty tax when they sell goods that are subject to customs and import taxes.
This includes items such as clothes, shoes, electronics, and more. Amazon sellers pays the duties on these sales even if the buyer is not in a country that imposes such taxes.
Depending on the item sold, the Amazon Seller may also be required to complete an export declaration or get an EIN (Employer Identification Number) from the IRS. Failure to do so can cause fines and/or imprisonment. So Amazon sellers need to stay up-to-date with current tax laws and regulations so they don't run into trouble down the road!
One of the most important aspects of being an Amazon Seller is knowing your duties and responsibilities. This includes paying taxes, filing state tax returns, complying with freight regulations, and maintaining accurate inventory levels.
Sellers are responsible for adhering to the Amazon Marketplace rules and guidelines that impact their business operation.
Amazon sellers are required to pay sales tax on all items that they sell, regardless of where they sell those items. Sales tax is required on Amazon-owned websites and on other third-party Marketplace e-commerce websites like eBay and Etsy.
Sellers who have a physical presence in a state but do not make any sales through their website or Marketplace account will be subject to standard statewide rates for retail purchases.
Amazon sellers with physical stores may also be subject to local and state sales tax.
There are a few exemptions to duty tax that Amazon Sellers may be eligible for. These include products returned within 30 days, products sold through third-party vendors with an established relationship with Amazon, and prescription drugs.
Amazon sellers registered for the Amazon FBA program may also be eligible for duty tax emeptions, including the following.
Foreign goods sold through AmazonWire
Inventory held for sale on an auction site like eBay or Etsy
Amazon understands that buying online can be convenient and fast. That's why the Amazon website provides easy-to-use tax calculators for international shoppers.
To calculate your duty taxes payable on imported goods sold through your Amazon account, simply use the DUTY CALCULATOR below:
The Amazon Duty Calculator Tool is a great resource for sellers who need to estimate the customs and duties that may be applied when sending products to international markets.
The duty calculator tool accounts for different product types, country of origin, shipment values, and more.