The Internal Revenue Service (IRS) requires U.S. third-party settlement organizations and payment processors, including Amazon, to file Form 1099-K for U.S. taxpayer sellers who meet both of the following thresholds in a calendar year:
- More than $20,000 in unadjusted gross sales.
- More than 200 transactions.
IRS regulations require non-U.S. taxpayers to provide Form W-8BEN to Amazon in order to be exempt from U.S. tax reporting requirements. As a result of these and other upcoming regulations, the following sellers are required by Amazon to provide taxpayer identification information to Amazon:
- All Professional sellers.
- Individual sellers that exceed 50 transactions in a calendar year, regardless of sales volume.
During your seller account registration, you can provide your information to Amazon using a self-service interview process that will guide you through entering your taxpayer information and validating your W-9 or W-8BEN form. In order to fulfill the IRS requirements as efficiently as possible, answer all questions, and enter all information requested during the interview. You can also find the interview form in Seller Central, under Settings > Account Info > Legal Entity.
Tax identity collection & validation+
If you are a U.S. taxpayer, 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 U.S. taxpayers, a Taxpayer Identification Number (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).
If you are a foreign seller and not a U.S. taxpayer, you will still need to complete the tax interview. The responses you provide to the tax interview questions will create the appropriate tax form on your behalf. IRS regulations require non-U.S. taxpayers to provide Form W-8BEN to Amazon in order to be exempt from U.S. tax reporting requirements.
Other resources
Amazon Tax Information Tutorial (sign-in required)
IRS guidelines for Payment Card and Third Party Network Transactions
Tariff and duty rates system+
It is the seller’s responsibility to comply with all U.S. customs laws and regulations, including applicable duty and tax requirements. Import duty and taxes are due when importing goods into the United States whether by a private individual or a commercial entity. Some goods are not subject to duty. U.S. Customs and Border Protection (CBP) does not require an importer to have a license or permit. Other agencies such as U.S. Department of Agriculture (USDA), U.S. Food and Drug Administration (FDA), and U.S. Consumer Product Safety Commission (CPSC), amongst others may require a permit, license, or other certification, depending on what is being imported. See the following links for additional information: www.usda.gov; www.fda.gov; www.cpsc.gov; www.cbp.gov. Additionally, please refer to the following link for tips on how to import to the U.S. https://help.cbp.gov/app/answers/detail/a_id/197/~/importing---licenses%2Fpermits
Note: It is your responsibility to ensure all goods comply with applicable regulatory requirements.
Customs entry forms ask for your importer number. This is either your IRS business registration number, or if your business is not registered with the IRS or you do not have a business, your Social Security Number. If you have neither a business tax number nor a Social Security Number, and you are a non-resident of the U.S., you may contact the port where your goods will enter the country and ask them to assign an importer number to you by filing a CBP Form 5106.
Customs+
Merchandise arriving in the United States by a commercial carrier must be entered by the Importer of Record (IOR). The IOR can be the owner, purchaser, his or her authorized regular employee, or by the licensed customs broker designated by the owner, purchaser, or consignee. Customs brokers are the only persons who are authorized by U.S. customs laws to act as agents for importers in customs matters, including customs clearance of imported goods. Customs brokers are private individuals or firms licensed by CBP to prepare and file the necessary customs entries, arrange for the payment of duties owed, take steps to release goods from CBP custody, and otherwise represent importers (i.e., principals) in customs matters. The fees charged for these services may vary according to the customs broker and the extent of services performed.
To obtain a customs broker, visit the Ports section of the U.S. Customs and Border Protection website. Select the state you will be importing into, click on the city, then find a link for “Broker listing” below the city information.
Non-resident importer requirements+
Entry of goods into the United States may be made by a non-resident (foreign) IOR. To become a non-resident IOR, the non-resident individual, partnership, or foreign corporation must:
- Appoint a resident agent: A non-resident (foreign) IOR must appoint a resident agent to receive documents on their behalf. Typically, non-resident IORs designate their customs brokers as their resident agent. The non-resident IOR makes this designation through a written power of attorney. If your goods are being imported via an express courier (DHL, Fed-Ex, UPS), the courier automatically utilizes Customs Brokers to clear your goods on your behalf. Customs Brokers charge for their services, so you may want to contact a few to discuss rates. A list of Customs Brokers can be found on the CBP Web site using this link, http://www.cbp.gov/contact/ports.
- Procure a customs bond: Customs regulations require that the IOR file an import entry bond (also known as a continuous entry bond) guaranteed by a resident surety company. The bond serves two purposes. First, Customs can execute against the bond if the IOR fails to pay assessed duties. Second, the IOR is bound by the conditions of the bond for any liquidated damages arising out of its breach of those conditions. The conditions of the entry bond include but are not limited to: payment of duties, taxes and fees; making or completing timely entry; and keeping and producing required documents and evidence related to the importation for 5 years. Customs keeps a list of approved surety companies. Sureties usually request certain financial information to ensure that the IOR has sufficient resources to pay customs duties and charges. A customs broker may assist with finding a surety for the bond and preparing the bond documents. A list of brokers in your state is available using this link, http://www.cbp.gov/contact/ports. Customs bonds can also be obtained through a surety licensed by the Treasury department. A list may be found on Treasury's Financial Management Service's website (http://www.fms.treas.gov/c570/c570.html).
Be aware some brokers will not issue you a bond without you giving them power of attorney to file your entry or entries on your behalf. In lieu of purchasing a bond from a licensed - or corporate - surety, you may pledge cash. - Obtain an IOR number: An IOR must apply for an IOR identification number from U.S. Customs (this is typically the company’s IRS number for US companies or a number assigned by U.S. Customs for foreign entities). Customs brokers can also assist with obtaining a number, or you may request that an importer number be assigned for you by filling out a CBP form 5106 and giving it to the CBP entry branch where you will be filing your customs entries.
Intellectual property rights+
You should ensure that you have all intellectual property rights (for example, patents, trademarks, or copyrights) necessary for listing your products in the United States. In particular, your products must not be counterfeits. Listing prohibited intellectual property may result in the cancellation of your listings, or the suspension or removal of your selling privileges. Sellers are responsible for ensuring that the products they offer do not infringe the intellectual property of others.
If we determine that the content of a product detail page or listing is prohibited, potentially illegal, or inappropriate, we may remove or alter it without prior notice.
Product compliance+
Restricted products for import into the U.S.