Why do I need to put my tax registration number (TRN) on all accounts in my organization in AWS Organizations?

Last updated: 2020-09-14

Why do I need to put my tax registration number (for example, a VAT number or VAT ID) on all accounts in my organization in AWS Organizations?

Short description

AWS assesses whether tax is due on the usage of each individual account based on the following:

  • Each account's contact address.
  • Each account's billing address.
  • Each account's Tax Registration Number (TRN), if applicable.

Adding a TRN to each applicable account means that the relevant TRN appears on each of your tax invoices. This enables you to claim credits from your local tax authorities, if applicable.

Resolution

Adding a TRN, business legal name, and business legal address to each of these accounts in your organization does the following:

  • Identifies each account as a "Business" customer.
  • Helps determine if AWS needs to collect tax for each individual account.
  • Allows AWS to issue tax-compliant invoices for each applicable account.

The TRN on a member account can be the same as the TRN on the payer account. Accounts with the same TRN are grouped together on a single, itemized VAT invoice. If there are accounts in your organization without a TRN, each account receives its own tax invoice, if applicable.

If your organization includes different legal entities or different countries, you can have different TRNs for each account. Payer accounts in an organization can check or update multiple linked accounts at the same time.

For example, assume that your organization has the following:

  • A payer account with a specific TRN.
  • Four member accounts with the same TRN as the payer account.
  • Six member accounts without a TRN.

You receive a total of seven VAT invoices:

  • One VAT invoice for the five accounts sharing the same TRN.
  • One invoice for each account without a TRN.

If your TRN is applicable to the six accounts that don't currently have a TRN, and you add the TRN to these accounts, you receive only one VAT invoice.

You can use the tax registration number of the payer account for your linked accounts by enabling your tax settings inheritance. When you enable tax settings inheritance, the tax registration information on the payer account is added to all accounts in your AWS Organizations account. This feature saves you the effort of registering redundant information. After you enable tax setting inheritance, the tax information on all accounts in your organization is consistent. You receive a single tax invoice that consolidates the usage from all accounts in your organization. For information on how to enable tax settings inheritance, see Enabling tax setting inheritance.