Referral Fee Tax
I am trying to locate any information regarding a New Tax added to all my orders since Feb.1st that is added to the referral fee. I am not referring to the Sales Tax that is charged to the customer and subtracted to my account. That is normal, however I have the 15% referral fee and just below it, it shows Tax that is added to the Referral Fee and subtracted from the sale. So now you have the sales tax and some other tax I am not aware of.
Is this something new?
Referral Fee Tax
I am trying to locate any information regarding a New Tax added to all my orders since Feb.1st that is added to the referral fee. I am not referring to the Sales Tax that is charged to the customer and subtracted to my account. That is normal, however I have the 15% referral fee and just below it, it shows Tax that is added to the Referral Fee and subtracted from the sale. So now you have the sales tax and some other tax I am not aware of.
Is this something new?
1 reply
Seller_i6S8knzW6zU6Z
Hi @Seller_JYcMpQG9Q4aqQ,
According to the Tax on U.S. seller fees FAQ (link), some states require Amazon to collect sales tax on seller fees, including referral fees. This is different from the regular sales tax charged to customers.
Under the "Why does Amazon collect sales tax on seller fees?" section, it explains that "Some states consider Selling on Amazon (SOA) fees, such as per item, order, and referral fees, as taxable."
The tax rules vary by state. For example, in the state tax chart on the help page:
- West Virginia charges tax on referral fees (state + local rates)
- Arizona only taxes subscription fees, not referral fees
- Other states have their own specific rules
Since you mentioned this started February 1st, you might want to check if your business location matches the tax requirements in the help page chart. If something doesn't seem right, reaching out to Seller Support could help clarify things.
Just for reference - the help page mentions Amazon has been collecting these taxes since June 2019, so if you're just noticing this now, there might have been a change affecting your account.
Hope this helps explain what you're seeing!
Best regards, Michael
