There has been a recent change in tax reporting rules relating to U.S. third-party settlement organisations and payment processors, including Amazon. For sales after January 1, 2022, Amazon is required by the Internal Revenue Service (IRS) to issue a Form 1099-K to all sellers who receive $600 or more in unadjusted gross sales without regard to the number of sales transactions. As such, if you meet the $600 tax reporting threshold for 2022 sales, you will receive a Form 1099-K on or before January 31 of the following year.
For calendar tax years prior to 2022 (2021 tax year and earlier), a 1099-K is only required to be issued if a seller had:
If you did not meet these thresholds, you did not receive an IRS Form 1099-K from Amazon.
To assist its sellers in complying with these IRS rules, Amazon has put in place a system for identifying sellers from whom it must obtain identifying information. Once you receive a notification, you will have to complete the Tax interview, even if the information that triggered the collection of the identifying information is changed or deleted at a later date.
You can provide your information to Amazon by clicking here to use our interview process that will guide you through entering your taxpayer information and validating your W-9 or W-8BEN form. To fulfil the IRS requirements as efficiently as possible, answer all questions and enter all information requested during the interview.
Avoid misspellings or entering incorrect Tax Identification Numbers, both of which can result in an invalidated tax form. Move forward or backward through the tax interview process at your own pace. Don’t worry if you are not sure which form (W-9 or W-8BEN) applies to you. The answers you provide during the tax interview will automatically determine that for you. To help protect the security of your taxpayer identification information, do not disclose it by email or over the phone.
Help is available throughout the tax interview process, including links to IRS publications that support the IRS forms W-9 and W-8BEN.
See answers to frequently asked questions below, and learn more at the IRS website.
The regulations are under section 6050W of the Internal Revenue Code. Go to the IRS website for more information.
Sellers who have a US address, banking information, or other identifying information are required to provide taxpayer identification information within 30 days of receiving email notification.
To provide your tax identity information, use the short tax interview available in your selling on Amazon payments account.
To help protect the security of your taxpayer identification information, we will not ask you to disclose it by email or over the phone.
If you do not provide valid tax identity information, your account will be considered in violation of our Amazon selling policies and your account will be suspended.
While we are committed to helping sellers understand the requirements under these tax regulations, we do not provide tax guidance. Contact a tax professional.
By completing the tax interview in your seller account, you will be providing Amazon the appropriate tax identity in the form of a W-9 or W-8BEN form.
For US taxpayers, a TIN is required by the IRS for the administration of tax laws. In most cases, your TIN is either an Employer Identification Number (EIN) or a Social Security Number (SSN).
Yes. Even if you are a non-US taxpayer, you still need to provide us information and the responses you give to the tax interview questions will create the appropriate tax form on your behalf.
IRS regulations require non-US taxpayers to provide Form W-8BEN to Amazon in order to be exempt from US tax reporting requirements. An IRS Form W-8BEN expires on December 31 following three years after a seller provides it to Amazon. When prompted, foreign sellers are required to retake the tax interview to submit a new form.
Amazon has to obtain identifying information from certain sellers on Amazon’s non-US websites. In general, the IRS regulations require us to collect identifying information from sellers who have a US address, US banking information or other identifying information connecting the seller to the US.
The US Internal Revenue Service (IRS) requires that Amazon maintain a current Form W-8 for sellers, individuals or entities who are not US persons. For more information about how the IRS defines US persons, see here .
If you have received an email from Amazon stating that your Form W-8 is expiring or has expired, you must complete an updated tax interview to continue selling. To access the tax interview, see instructions here. If you are a non-US person, failure to maintain a current Form W-8 will result in suspension of your selling privileges.
To update your tax information, you must complete the US Tax Identity Information Interview.
To update your legal business name:
After you update your tax identity information, the Legal Entity section of your Account Info page will display “Provided and Pending Validation”. If we find your information doesn’t match IRS records, we will send you an email with instructions on how to proceed. If you choose to post your hard copy document instead of consenting to electronic signatures, we will require 10-15 working days to process upon receipt. The validation process can take up to eight weeks from the time Amazon receives your information, either electronically or via mail, if you ticked the box that states “I have received my EIN/SSN within 60 Days” while taking the tax interview.
No, the interview does not collect information about VAT or GST. We will continue to collect your VAT or GST information within the Account Info page on Seller Central.
For information on beneficial ownership, visit the IRS website.
Amazon does not provide paper copies of W-8BEN or W-9 Forms, but you will have an option to download an electronic copy of your forms at the end of the tax interview. Retain a copy of all tax information you provide to Amazon.
The information provided during the tax interview needs to match the IRS records.
After you update your tax identity information, the Legal Entity section of your Account Info page will display “Provided and Pending Validation”. If we find your information doesn’t match IRS records, we will send you an email with instructions on how to proceed. If you choose to post your hard copy document instead of consenting to electronic signatures, we will require 10-15 working days to process upon receipt. The validation process can take up to eight weeks from the time Amazon receives your information, either electronically or via post, if you ticked the box that states “I have received my EIN/SSN within 60 Days” while taking the tax interview.
We don’t know exactly why your tax identity information came back as invalid, but here are some things to consider:
If you provided tax identity information and it came back invalid, you have 30 days from the date of the email from Amazon to correct the tax identity information. If you do not provide corrected tax identity information within 30 days, your Amazon selling privileges will be suspended.
If you had at least $600 in unadjusted gross sales a Form 1099-K will be provided to you. If you did not meet the threshold, you will not receive a Form 1099-K. We will track your unadjusted gross sales and you will also be able to tell if you have exceeded the thresholds by monitoring your unadjusted gross sales in your account.
Amazon will make available to you a copy of your form on or before January 31 of the following year. If you did not consent to electronic delivery, the form will be postmarked on or before January 31 of the following year and will be posted to the address provided by you in the tax interview.
You can find the form in your seller account. From the Reports section, select Tax Document Library, then the appropriate year, and then Form 1099-K. Make sure you are signed in as the primary user. Only the primary user can access forms in the Tax Document Library.
To find out how this legislation and Form 1099-K affect your business or if you have other questions, contact your tax, legal or other professional advisor.
For Individual filers, see these IRS instructions: http://www.irs.gov/pub/irs-pdf/i1040sc.pdf
For legal entity filers, see Form 1120: http://www.irs.gov/pub/irs-pdf/i1120.pdf
For more information on IRS Form 1099-K, see Form 1099-K.
From the Reports section in your seller account, select Tax Document Library, then the appropriate year, and then Form 1099-K. Click on the Download PDF link To save the form to your computer, while it is open in Adobe Reader, click on File, then Save As, and then PDF. Select a location on your computer and click on Save.
All non-US regions (such as EU, Japan) have their Form 1099-K reported in USD. However, your Seller Central date range reports provide transactional amounts in local currency. For generating Form 1099-K, Amazon uses a daily exchange rate that is applied on the date the transaction is booked.
The $600 is calculated based on unadjusted gross sales. Unadjusted gross sales means the total sales, unadjusted for fees or refunds. It is the amount the buyer paid for an order even if the order is later refunded.
Unadjusted gross sales equals the amount the buyer paid for the order and includes sales proceeds, sales tax, and gift-wrap and shipping charges.
No. When you make a sale, the order total becomes a permanent part of your unadjusted gross sales for the year. Even if you later refund the entire amount a buyer paid for an order, the order total is still included in your unadjusted gross sales calculation. The IRS regulations require that no adjustments to gross transaction amounts be made. Seek advice from a tax professional to understand the appropriate adjustments when preparing your tax return.
Here is an example that includes a discount to the buyer, an Amazon fee, and an eventual full refund to the buyer:
Item price: $100
Seller promotional discount: -$10 (subtracted before the gross sales amount is calculated)
Shipping charge: $15
Order total: $105 (gross sales amount)
Amazon fee: -$20 (subtracted after the gross sales amount is calculated)
The buyer is later refunded in full.
Buyer credit of the order total: -$105
Seller credit of the Amazon fee: $20
The gross sales amount for the purposes of calculating annual gross sales is $105, even after the refund.
Yes. Unadjusted gross sales will be consolidated for all accounts that have the same Tax Identification Number (TIN). A Form 1099-K is issued by Amazon as applicable for each jurisdiction you sell in. If you sell across different regions with Amazon, you may receive more than one Form 1099-K. Provide your taxpayer identification information in each of your accounts regardless of thresholds. This will help ensure that we report all accounts with the same TIN on Form 1099-K as required by the regulations.
If the error is related to:
Incorrect address: To update your address, you must retake the tax interview. Be sure to provide an e-signature at the end for faster processing. Instructions for completing the tax interview are provided here. Note that this will only update your address for tax purpose.. Instructions for completing the tax interview are provided here.Note that this will only update your address for tax purposes, it will not update forms generated for previous years.
Incorrect tax ID or name: Your IRS Form 1099-K was issued based on the tax information on file at the time the payment was made. To make an update, you must retake the tax interview. Be sure to provide an e-signature at the end for faster processing. Instructions for completing the tax interview are provided here
Change of information: If you have provided Amazon with updated tax information during the calendar year, you will receive a separate 1099-K form for each tax ID that met the reporting thresholds for the calendar year.
Amount: If you are referencing your bank account or your settlement report from Amazon, note that per IRS regulations, the amounts listed on your IRS Form 1099-K represent the unadjusted gross sales that occurred and not the actual bank transfers. Unadjusted gross sales represent your total sales unadjusted for fees or refunds. The amount is the total that buyers paid for orders, even if orders were later refunded.
To find out how this legislation and Form 1099-K affect your business, or if you have other questions, contact your tax, legal or other professional advisor.
For Individual filers, see these IRS instructions.
For legal entity filers, see Form 1120.
For more information on IRS Form 1099-K, see Form 1099-K.
While we are committed to helping sellers understand the requirements under these new tax regulations, we do not provide tax guidance. Contact a tax professional.
The Form 1099-K was posted to the address you provided in the tax interview. You can also retrieve the form from your seller account. From the Reports section, select Tax Document Library, then the appropriate year, and then Form 1099-K. Click on the Download PDF link.
You can use the Amazon VAT Transactions Report (AVTR) page to generate individual transaction reports for a specific month or date range.
To generate an AVTR report, follow these steps:
The IRS Form 1099-K you received is reported based on the information you provided during the US tax identity interview. The IRS Form 1099-K is generated from your selling on Amazon activity, Prime Now, Amazon Pay, Mechanical Turk (MTurk) and Flexible Payments Systems (FPS), plus Invoicing.
You can use the Date Range Reports page to generate summary reports for a specific date range.
To generate a date range report, follow these steps:
The Income section includes your sales, credits and refunds.
|Seller-fulfilled product sales||The total amount of your product sales for seller-fulfilled products.|
|FBA product sales||The total amount of your product sales for Amazon-fulfilled products.|
|Shipping credits||The amount paid by buyers for shipping.|
|Gift wrap credits||The amount paid by buyers for gift wrap.|
|Promotional rebates||The amount deducted from your account balance for promotional offerings.|
The Sales Taxes section includes the taxes collected on product sales and services.
|Sales, shipping, and gift wrap tax||Sales tax collected from buyers for product sales, shipping and gift wrap. This amount may include deductions for promotional rebates.|