AWS Marketplace

Tax Documentation for Selling to Customers in India in AWS Marketplace

As a seller offering third-party software, services, or data in AWS Marketplace, you need to be aware of different tax laws that impact your sales to customers across regions. When selling in AWS Marketplace to customers in India, withholding tax (WHT) provisions under Indian tax laws affect how customers assess and pay invoices.

In this post, we cover the key tax documents that customers in India may request from you as a third-party seller in AWS Marketplace. Having these documents readily available can help streamline the sales process and ensure timely payments.

Withholding tax requirements for Indian customers

In India, a customer determines if WHT applies to a payment for third-party software, services, or data purchased in AWS Marketplace. If WHT applies, the customer is required to deduct and deposit WHT before remitting payment. Although the AWS Customer Agreement states that a customer must make full payment to Amazon Web Services (AWS), Inc. (without deducting WHT), the customer must determine if they need to pay WHT out of pocket.

To analyze WHT implications on payments for AWS Marketplace invoices, Indian customers may request certain tax documents from you, the third-party seller. These documents enable Indian customers to take a beneficial tax position under Indian tax laws.

Key tax documents

The key documents customers in India may require you to obtain annually are:

1. No Permanent Establishment (PE) Declaration
This document helps the Indian customer confirm that a nonresident third-party seller does not have a physical presence, office, establishment, or PE in India.

2. Tax Residency Certificate (TRC)
Issued by your home country’s tax authority, the TRC establishes your tax residency status.

3. Electronic Form 10F
Form 10F is prescribed under Indian tax laws. As a nonresident third-party seller, you can create an account, log in, fill in the requisite details, and generate this form electronically from the official portal of the Income Tax Department, Ministry of Finance, Government of India.

Providing these documents proactively ensures a smooth collections process with your Indian customers in AWS Marketplace. Failure to promptly provide the required tax documentation may result in payment delays because Indian customers may have to bear additional costs (WHT out of pocket) if they do not receive the documents.

Preparing to sell in AWS Marketplace to Indian customers

As part of the AWS Marketplace seller onboarding process, third-party sellers acknowledge and agree to the tax document requirements for selling to Indian customers as stipulated in Section 7h of the Service Terms for AWS Marketplace Sellers. Keeping these documents up-to-date and readily available sets you up for success when transacting with customers in India in AWS Marketplace.

When AWS requests these tax documents, please respond promptly by following these steps:

  1. Sign in to the AWS Marketplace Management Portal and visit the Contact Us page and submit a support request.
  2. Enter the primary email address where you want to receive correspondence. You can optionally add additional email addresses.
  3. Select the following categories:
    • For Is your question about your listing(s) in the Commercial Marketplace (including AWS Data Exchange) or Intelligence Community Marketplace, choose Commercial Marketplace.
    • For What do you need help with? Pick a category that best applies, choose Private Offer.
    • For Select a subcategory, choose Tax.
  4. Provide more details about your request in the text field, including a designated point of contact or email address for future correspondence.
  5. Choose Submit.
  6. You will receive an email message at the email address you provided. Attach the tax documents in your email response and send.

By proactively preparing for these requirements, you build trust with customers in India and ensure timely payments for your third-party software, services, and data offerings in AWS Marketplace.

Conclusion

Navigating tax laws and regulations across regions can be complex when selling in AWS Marketplace globally. However, being prepared with the necessary tax documents can help ensure a smooth selling experience to customers in India. By understanding the specific requirements, you can streamline the sales process, avoid delays in collections and disbursements, and build trust with your customers in India.

Additional resources

AWS Marketplace Seller Guide
Service Terms for AWS Marketplace Sellers
Tax Help for AWS Marketplace Sellers

About the author

Loiki is a MP Vendor Finance Success Tech Services Manager and works to enable a world-class AWS MP post-transaction experience focused on financial operations topics like invoicing, collections, disbursements and tax. In his spare time, he enjoys playing basketball, and spending time with his pets.