Are sellers on the US site also taxed? Amazon implements new policy

Are sellers on the US site also taxed? Amazon implements new policy

Let’s start today’s main text.


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Amazon pushed a notification in the backend last weekend, informing sellers that the Chilean government has implemented a new tax policy, requiring Amazon to assist in collecting taxes on taxable overseas orders. Therefore, Amazon will start collecting taxes on all orders purchased by Chilean consumers starting this month (August 1st). If the seller does not have a local tax number, the tax will be deducted according to the standard tax point of 19%.

Of course, Amazon does not have a Chilean site. If Chilean consumers want to buy products on Amazon, they have to buy products on other sites (such as the US site or Brazil site) and then ship them internationally. This is why sellers on the US site will also be affected by this policy .


The same thing happened at the beginning of this year. A group of sellers received emails asking them to upload their French tax numbers, but these sellers only had stores on the US site.

In fact, just like the new policy, it is because French buyers bought products from the US site through overseas delivery services, which led to these US site sellers being reminded to upload tax numbers. However, France does have a separate French site after all, and it is definitely a rare case that local consumers go to other sites to buy things.

However, Chile does not have its own website. Chilean consumers can only buy goods at overseas websites . And unlike Europe, where taxes are not paid until the sales volume reaches a certain level , Chile’s new tax policy requires that taxes be paid on every order, regardless of the sales volume . This has a significant impact.


Therefore, if you do not want to generate these taxable orders, it is best not to place orders for international delivery.


The trade-offs of Amazon’s export feature


Many sellers are confused. They clearly have not turned on this function. Why do they still have such overseas orders? In fact, Amazon's export function is turned on by default. If you do not change it yourself, overseas consumers can buy freely .


Therefore, if you do not want to generate these orders that may be subject to tax, sellers on the US site can directly turn off the Amazon logistics export function in the background. Just go to the settings and switch to disable. Here is a detailed instruction diagram for everyone.

However, closing it directly may cause loss of orders from other regions where no tax is required. If you have a lot of such orders, you might as well set up an export list in the background and disable certain countries that require tax (such as all EU countries). You can also directly add Chile, Mexico, etc.

After the ban is set, these overseas sellers will not be able to purchase products from the US site, and there will be no tax payment issues. After all, without a tax number, these taxes are a considerable cost. There are generally not many orders from overseas. In order to avoid tax issues, I still recommend that you disable it if you don’t need it.


If the number of orders decreases as a result, you can try various deal sites in the United States. Now that the United States has resumed work and the epidemic has broken out, everyone needs to stock up on some daily necessities, and the money used to buy other products will definitely be reduced. At this time, the effect of going to the deal site may be better.


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