Guide to Sales Tax Collection in Amazon
Chapter 6: Final Details
Managing Refunds and Exemptions
If you are enrolled in the Amazon FBA program, you don’t have to worry about managing refunds and tax exempt purchases. The responsibility of managing these events falls on the shoulders of Amazon. Purchasers are required to submit their tax exemption documentation for the state to which your items shipped in order to receive a sales tax refund.
If you are not enrolled in the Amazon FBA program, you may find customers contacting you directly to request a sales tax refund.
Sales Tax Holidays
Sales tax holidays are a temporary period during which state sales tax is not collected or payed on qualifying items. There are two main types of sales tax holidays. The first coincides with the beginning of the school year allowing consumers to purchase educational items such as clothing, computers, and school supplies tax free.
The second is scheduled prior to the start of the expected hurricane season and allows consumers to purchase hurricane preparedness supplies tax free.
Amazon participates in sales tax holidays so be aware that during these periods, purchases of qualifying goods from customers within qualifying states will be tax exempt.