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How Amazon Tax Exemption Program (ATEP) Works | ADI Infosys

Everything You Need To Know About Amazon TAX Exemption Program (ATEP)

How Amazon TAX Exemption Program (ATEP) Works
Amazon Business has several features and tools to ace your online business. All things you need to know about Amazon’s Tax Exemption Program (ATEP). Commonly asked questions from some of our business customers.


Amazon Tax Exemption Program (ATEP) is a program, which allows an organization to use their tax exemption status towards purchases that take place on Amazon Business.

If you’re new to Amazon Business, it’s a marketplace that enables sellers and manufacturers to sell directly to registered companies. The advantages are many, and there is no reason not to have an Amazon Business account.

Should Amazon Business be Considered?

If you are an Amazon professional seller, you have access to all of the tools and services that may assist you in scaling your business and differentiating yourself from the competition. If you’re unsure whether or not selling on Amazon Business is a good match for you, make sure you check out ADI INFOSYS business reports.

With our Business reports, you can get insights into customer interests and find what products are profitable in your category.

Everything you need to know about Amazon’s Tax Exemption Program

Returning to Amazon’s Tax Exemption Program, customers and organizations who do business via Amazon’s platform are eligible for sales tax exemptions. Amazon merchants that participate in this program must accept ATEP exemptions from customers. This program ensures that all teacher and staff orders are tax-exempt.

As a participating seller, you may manage buyer exemptions automatically via your Seller Central account. Purchasers who are not tax exempt at the time of purchase may seek tax refunds from you later.

If you want to learn more about post-tax exemptions, check out this link

In general, the tax exemption applies to items sold by:

  • Amazon.com LLC
  • Amazon Digital Services, Inc.
  • Warehouse Deals, Inc.
  • Amazon Services LLC.
  • 3rd party Amazon sellers (vendors) participating in ATEP

What are the benefits of registering for Amazon TAX Exemption Program?

If you are an Amazon Business seller, you may be eligible for the Amazon Tax Exemption Program. Amazon merchants that participate in the ATEP will have their tax exemptions handled automatically. This automated handling process entails the collecting of customer exemption papers and their storage in Amazon’s system, which may be accessed through an Amazon seller account. You may access the papers at any time via the Tax Document Library.

Additionally, purchasers may limit their search results to include or exclude vendors that accept the tax exemption.

How to Identify Tax-Exempt Orders?

To determine if such orders exist, you must utilize the reporting portion of your Tax Document Library. Within 72 hours of the order, you will discover data in the Buyer Exemption column and exemption papers in your Sales Tax Report under the Tax-Exemption Certificates tab.

Is participation in ATEP mandatory?

Amazon Business offers an optional service called the Amazon Tax Exemption Program. If you join, you may benefit from fewer customer inquiries about tax settings and post-order tax reimbursements on purchases.

Additionally, sellers are obliged to disclose any tax-related responses to the buyer upon request.

How ATEP Works During the Refund Process

When a client seeks a tax refund on an FBA purchase, Amazon honors the request. Only if Amazon gets supporting exemption paperwork, which you can access in your Tax Document Library, will the tax be reimbursed.

You may provide tax refunds on merchant-fulfilled purchases at any time. You may refer consumers to Amazon customer support in the event of FBA. Additionally, you may give a concession refund on the order.

What Information About Buyers Does Amazon Collect During Amazon TAX Exemption Program Enrollment?

This information contains the buying organization’s name, the kind of organization (reseller, government, or charity organization, for example), and the jurisdictions (state or/and local) in which the tax exemption applies.

Along with the data, Amazon verifies the buyer’s details following enrollment. Additionally, it expects purchasers to submit correct information and maintain current tax exemption information.

If you want to know more about the Amazon Tax Exemption Program, check out this link here.

Final thoughts

Amazon Business has a number of advantages for both vendors and customers. We hope this information is beneficial to you. If you have any questions about Amazon Business, please contact us.

Drop us an email at [email protected]

We’re happy to help!

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