Last updated: October 1, 2022

 

Upcoming changes

From October 1, 2022, AWS Australia is the AWS Marketplace Facilitator for purchases made by buyers with AWS accounts based in Australia.

From October 1, 2022, AWS Japan is the AWS Marketplace Operator for purchases made by buyers with AWS accounts in Japan.

Previously, AWS, Inc. was the AWS Marketplace Operator for AWS Marketplace purchases made by buyers with AWS accounts in Australia and Japan.

 

AWS Marketplace is operated globally by different AWS legal entities based on the location of the buyer’s AWS account.

Amazon Web Services, Inc. ("AWS, Inc."), a U.S. based entity, is the Marketplace Operator of AWS Marketplace sales to AWS buyer accounts not located in EMEA (except Turkey and South Africa), Australia, or Japan.

From January 1, 2022, if you have onboarded as a seller with Amazon Web Services EMEA Sarl (“AWS Europe”), AWS Europe is the AWS Marketplace Operator for sales you make on to AWS buyer accounts based in Europe, the Middle East, and Africa (“EMEA”), except Turkey and South Africa. For a full list of countries, please click here.

From October 1, 2022, if you have onboarded as an AWS Marketplace seller, Amazon Web Services Australia Pty Ltd ("AWS Australia") is the AWS Marketplace Facilitator for sales you make to AWS buyer accounts based in Australia.

From October 1, 2022, if you have onboarded as an AWS Marketplace seller with Amazon Web Services Japan G.K. (“AWS Japan”), AWS Japan is the AWS Marketplace Operator for sales you make to AWS buyer accounts based in Japan.

The Terms and Conditions for AWS Marketplace Sellers have been updated with AWS Europe, AWS Australia and AWS Japan replacing AWS, Inc. as the AWS Contracting Party for AWS Marketplace with respect to your transactions with buyers whose AWS accounts are located in EMEA (except Turkey and South Africa), Australia and Japan respectively. Please review the Terms and Conditions for AWS Marketplace Sellers to check if you meet the additional seller requirements (highlighted as footnotes under the Eligible Jurisdiction for Paid Products section) to determine which AWS Marketplace you are eligible to contract with.

If you are not an EMEA-eligible seller through AWS Europe, AWS, Inc. remains the marketplace operator for the transactions with subscribers whose AWS accounts are located in EMEA (except Turkey and South Africa).

Indirect Taxes

Please be advised that a number of countries have enacted legislation which requires non-resident sellers of electronically supplied services (ESS) to charge sales tax, value added taxes (VAT), goods and services tax (GST), service tax, etc. (“Indirect Taxes”) to end buyers located in their country. A number of US states and foreign taxing jurisdictions also require marketplace operators, such as AWS Marketplace, to collect Indirect Taxes in the marketplace operator's/facilitator's own name, on sales made by a third-party marketplace seller.

See below table for the countries where AWS, as a marketplace operator/facilitator, is liable to collect Indirect Taxes in its own name and on which transactions (B2B and/or B2C) AWS will collect Indirect Taxes on. If AWS does not collect Indirect Taxes, you may have an obligation to calculate, collect, invoice and remit Indirect Taxes. Please consult to your accountants or tax advisors to determine your obligation to charge applicable Indirect Taxes. AWS Marketplace makes available to you a tax items data feed through Seller Data Delivery Service to help you identify your Indirect Tax obligations. For more information, see AWSMP blog post and technical documentation.

Jurisdictions (the location of your buyer)

Software and data products Remote Professional Services Current Indirect Tax Rate
Australia
AWS Australia is the marketplace facilitator

B2B[1] and B2C
B2B[1] and B2C 10%
Bangladesh B2C only   15%
Canada – GST/HST B2C and B2B B2C and B2B 5%,  13%, or 15%
Canada – QST B2C and B2B
B2C and B2B 9.98%
Canada – SK PST B2C and B2B
B2C and B2B 6%
Canada – BC PST B2C and B2B
B2C and B2B 7%
Chile B2C only unless withholding tax applies, see here   19%
European Union[2] and the UK
Amazon Web Services Inc, is the marketplace operator
B2C only  
VAT Rates Summary Table (EMEA)
European Union and the UK
AWS Europe is the marketplace operator
B2C and B2B[3]   VAT Rates Summary Table (EMEA)
Japan[4]
AWS Japan is the marketplace operator

N/A  N/A N/A
India B2C only   18%
Indonesia B2C and B2B   10%
Kingdom of Saudi Arabia B2C only   15%
Malaysia B2C and B2B
  6%
New Zealand B2C only B2C only 15%
Norway[5] B2C only   25%
Russia B2C and B2B
  20%
Singapore B2C only   7%
South Africa B2C and B2B
  15%
South Korea B2C only   10%
Taiwan B2C only B2C only 5%
Thailand B2C only
  7%
Turkey  B2C only   18%
United Kingdom B2C only   20%
United States Only in specified states[6] Only in specified states[6] Various

[1] AWS Australia will charge 10% GST on all AWS Marketplace purchases made by non-business ("B2C") buyers with AWS accounts based in Australia. AWS Australia will also charge 10% GST on AWS Marketplace purchases made by business ("B2B") buyers with AWS accounts based in Australia buying from an Australia based seller. AWS will issue a tax compliant invoice for purchases with GST charged. AWS Australia will not charge GST on AWS Marketplace purchases made by B2B buyers with AWS accounts based in Australia from a non-Australia based seller and will only issue a commercial invoice for such purchases.

[2] The EU comprises of Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Isle of Man, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
[3] AWS will collect VAT on B2B transactions only in the EU countries where AWS Europe has a branch, (please see here for EU branch countries) and only if AWS Europe is the marketplace operator for the transaction i.e. your Contracting Party under the Terms and Conditions for AWS Marketplace Sellers is AWS Europe. In case you are not onboarded seller to AWS Europe for the buyers located in EMEA except Turkey and South Africa, AWS does not collect VAT on B2B transactions in the EU branch countries and the buyers may need to self-assess.
[4] AWS Japan will issue separate commercial invoices for AWS Marketplace purchases made by AWS accounts in Japan. AWS Japan is not required or allowed to collect Japanese Consumption Tax (JCT) on sales made by AWS Marketplace sellers. The seller may charge JCT separately to AWS Marketplace buyer accounts located in Japan and issue buyers a JCT compliant invoice.
[5] In case your customer is in Norway; if your customer has provided AWS with a NO VAT Registration Number (B2B transaction), you (and not AWS) will be responsible for VAT calculation, collection, invoicing and remittance for that customer, if applicable. Please consult with your accountants or tax advisors.

[6] The following states require AWS to collect and remit tax on taxable sales made by the AWS Marketplace Seller (effective date as noted): Alabama (January 1, 2019), Arizona (October 1, 2019), Arkansas (July 1, 2019), California (October 1, 2019), Colorado (October 1, 2019)[6.1], Connecticut (December 1, 2018), District of Columbia (April 1, 2019), Florida (July 1, 2021), Georgia (April 1, 2020), Hawaii (January 1, 2020), Idaho (June 1, 2019), Illinois (January 1, 2020), Chicago, Illinois (May 1, 2022)[6.2], Indiana (July 1, 2019), Iowa (January 1, 2019), Kansas (July 1, 2021), Kentucky (July 1, 2019), Louisiana (July 1, 2020), Maine (October 1, 2019), Maryland (October 1, 2019), Massachusetts (October 1, 2019), Michigan (January 1, 2020), Minnesota (October 1, 2018), Mississippi (July 1, 2020), Missouri (September 1, 2022)[6.3], Nebraska (April 1, 2019), Nevada (October 1, 2019), New Jersey (November 1, 2018)[6.4], New Mexico (July 1, 2019), New York (June 1, 2019), North Carolina (February 1, 2020), North Dakota (October 1, 2019), Ohio (September 1, 2019), Oklahoma (July 1, 2018), Pennsylvania (April 1, 2019), Puerto Rico (July 1, 2020), Rhode Island (July 1, 2019), South Carolina (April 26, 2019), South Dakota (March 1, 2019), Tennessee (October 1, 2020), Texas (October 1, 2019), Utah (October 1, 2019), Vermont (June 1, 2019), Virginia (July 1, 2019), Washington State (January 1, 2018), Wisconsin (January 1, 2020), West Virginia (July 1, 2019), Wyoming (July 1, 2019). Sales tax will be collected on all taxable sales as determined by AWS.

[6.1] AWS has turned off Tax Calculation Service for Colorado localities effective 4/1/2021. AWS is collecting sales tax in the Colorado localities in which it is registered that have enacted Marketplace Operator Legislation. See here for further information and a list of localities that have enacted Marketplace Operator legislation.

[6.2] AWS has turned off Tax Calculation Service for the City of Chicago Lease Transaction Tax effective 5/1/2022. AWS, as the Marketplace Operator, is now collecting any applicable Lease Transaction Tax from buyers with Chicago account addresses.

[6.3] AWS has turned off Tax Calculation Service for sales tax in Missouri effective 9/1/2022. AWS, as the Marketplace Operator, is now collecting any applicable Missouri sales tax from buyers with Missouri account addresses.

[6.4] Under New Jersey law, sales of prewritten software delivered electronically and used directly and exclusively in the conduct of the purchaser’s business are exempt from sales tax. We assume all New Jersey purchasers use offerings purchased on AWS Marketplace exclusively in their business. For more information on how tax is calculated and applying exemptions, go to Tax Help – United States.

All VAT collected from buyers will be paid to the local tax authorities by the relevant AWS Marketplace operator. 

AWS Listing Fees

If AWS Europe is the Marketplace operator, AWS Europe is required to charge local VAT on the listing fee if your AWS Marketplace Seller account is located in Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland and the UK. For the applicable rates of VAT, please click here.

AWS Europe charges VAT on listing fee charges incurred from 1 January 2021, unless you have a “special status”. Please note that “special status” includes:

  • International Organizations, such as the United Nations, NATO, the OECD, etc.; Please note that local charities do not qualify for special status;
  • VAT exemption purchase certificate (for e.g. VAT56B in Ireland); and
  • Article 17 split-payment in Italy.

If applicable, AWS Europe also issues valid VAT invoices, please contact AWS Marketplace from here if you need valid VAT invoices. 

If your seller account is located in an EU country not listed above, the USA, Australia, New Zealand, the UAE or Bahrain, AWS Europe will not charge you VAT, but you may have to self-assess VAT or your local equivalent Indirect Tax if required by the local legislation. Please consult your accountant and tax advisors.

If AWS Australia is the marketplace operator, AWS Australia will be required to charge local GST on the listing fee and issue a tax compliant invoice if the AWS Marketplace Seller account is located in Australia. If your seller account is not located Australia AWS Australia will not charge you GST, but you may have to self-assess VAT or your local equivalent Indirect Tax if required by the local legislation. Please consult your accountant and tax advisors.

If AWS Japan is the marketplace operator, AWS Japan will be required to charge local JCT on the listing fee and issue a tax compliant invoice if the AWS Marketplace Seller account is located in Japan. If your seller account is not located in Japan, AWS Japan will not charge you JCT, but you may have to self-assess VAT or your local equivalent Indirect Tax if required by the local legislation. Please consult your accountant and tax advisors.

If you are a seller who is required to provide a VAT/GST/JCT ("TRN") registration number as noted in the Eligible Jurisdictions list, please visit the Tax Settings page of the AWS Billing Console and confirm or update your details, including your TRN number and Business Legal Address for all of your account(s). This will ensure that your TRN is displayed on the VAT invoices issued by AWS Europe, to enable you to claim a credit for VAT charged by AWS Europe on your listing fee, in accordance with your own circumstances, as well as local laws and regulations. For additional information on TRN, please click here.

Withholding taxes ("WHT")

You are the legal seller of record of your offering(s) on AWS Marketplace. Sellers with paid products must be incorporated in an eligible jurisdiction listed in Getting started as a seller - AWS Marketplace.

Buyers should review and determine their withholding tax obligations in their jurisdictions when they purchase from you on AWS Marketplace. If a buyer wants certain documentation (such as tax residency certificate or relevant forms) from you as the seller, you should discuss directly with the buyer. Please consult with your accountants or tax advisors.

Please also consult with your accountants or tax advisors for the applicability of WHT in your jurisdiction on listing fee charges.

Other country specific information

France

You could be liable for French taxes and social security contributions on transactions from, with, or in France. To help you comply with any potentially applicable French tax obligations, AWS Marketplace sends you the following:

  • A monthly report listing your sales transactions from, with, or in France that occur through AWS Marketplace. The monthly reports contain the transactions from the previous month.
  • An annual report summarizing your sales transactions from, with, or in France during a given year. The annual reports are sent to you no later than January 31 of the following year.

For more information, consult your tax adviser or see the following websites:

United States
 
AWS Marketplace has begun following new-2022 IRS changes to 1099-K reporting
 
The American Rescue Plan Act of 2021 which was signed into law on March 11, 2021 revised threshold changes for 1099-K reporting, beginning in 2022. Form 1099-K (Payment Card and Third-Party Network Transactions) is the form where AWS Marketplace reports the gross value of the amounts that are settled by Sellers, who are US taxpayers. Prior to this change, AWS Marketplace was only required to report on this form if the gross payments of a seller’s transactions on AWS Marketplace exceeded $20,000 in a year and the seller engaged in more than 200 such transactions in that year. Starting in 2022, this threshold has been lowered such that we are required to file a Form 1099-K for each seller who have transactions on AWS Marketplace with gross payments exceeding $600 a year. There is no longer a minimum number of transactions that the seller needs to have engaged in as was previously the case. For more information, see Understanding Your Form 1099-K.

This law does not change the amount of taxes that US taxpayers are required to pay under US federal income tax law. It only changes the reporting requirement for AWS Marketplace. Consistent with our past practice, for any Form 1099-K that AWS Marketplace reports to the IRS, a corresponding copy of that Form 1099-K will be sent to the relevant taxpayer in early 2023 for the 2022 tax year.
 
If you have any additional questions about how this tax law change will affect you, we recommend you reach out to your tax advisor for additional information.