AWS Marketplace Sellers & Tax Collection

Please be advised that a number of foreign countries have enacted legislation which requires non-resident sellers of electronically supplied services (ESS) to charge value added taxes (VAT) or goods and services tax (GST) to end customers located in their country. A number US states and foreign taxing jurisdictions also require marketplace operators, such as AWS Marketplace, to collect sales tax, VAT or GST in their own name, on sales made by a third party marketplace sellers. Outlined below is a list of locations where, in order to comply with these non-resident seller and/or marketplace facilitator laws, AWS will collect sales tax, VAT or GST and remit it to the local tax authorities, in the name of AWS, Inc. Note that there are also some US states or countries which may require you, as the legal AWS Marketplace seller, to register for and remit taxes on B2C and possibly B2B sales of software/ESS, such as Japan mentioned below. AWS recommends that you consult a tax advisor to determine your tax obligations in these and other taxing jurisdictions.  

In the US, AWS offers the AWS Marketplace Tax Calculation Service to help you meet your US Sales Tax compliance obligations. For more information about the Tax Calculation Service go to the AWS Marketplace User Guide.

Jurisdictions which require non-resident sellers to collect VAT on sales of cloud and similar services

Is AWS required to collect and remit tax on sales made by the AWS Marketplace Seller

Australia

Yes - B2C only

European Union*

Yes – B2B and B2C where applicable

India

Yes - B2C only

Kingdom of Saudi Arabia

Yes – B2C only

New Zealand

Yes - B2C only

Norway

Yes - B2C only

Russia

Yes - B2C only until 1.1.19, afterwards B2B & B2C

South Africa

Yes – B2B and B2C

South Korea

Yes - B2C only

Taiwan

Yes - B2C only

Turkey

Yes – B2C only

United States

Yes – Only in specified states, see below

* 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, Sweden and the United Kingdom

 

United States

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)

Connecticut (December 1, 2018)

District of Columbia (April 1, 2019)

Hawaii (January 1, 2020)

Idaho (June 1, 2019)

Illinois (January 1, 2020)

Indiana (July 1, 2019)

Iowa (January 1, 2019)

Kentucky (July 1, 2019)

Maryland (October 1, 2019)

Massachusetts (October 1, 2019)

Minnesota (October 1, 2018)

Nebraska (April 1, 2019)

New Jersey (November 1, 2018)*

New Mexico (July 1, 2019)

New York (June 1, 2019)

North Dakota (October 1, 2019)

Ohio (September 1, 2019)

Oklahoma (July 1, 2018)

Pennsylvania (April 1, 2019)

Rhode Island (July 1, 2019)

South Carolina (April 26, 2019)

South Dakota (March 1, 2019)

Texas (October 1, 2019)

Utah (October 1, 2019)

Vermont (June 1, 2019)

Virginia (July 1, 2019)

Washington State (January 1, 2018)

Wisconsin (October 1, 2019)

West Virginia (July 1, 2019)

Wyoming (July 1, 2019)

Sales tax will be collected on all taxable sales as determined by AWS.

* 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.

Japan

There has been a reassessment of the tax treatment of cross border digital services based on the 2015 Japan Tax Reform. As a result, AWS Marketplace sellers may have Japan consumption tax obligations for sales to customers in Japan. If you sell any software through AWS Marketplace to a customer in Japan (business or individual), you may now have to pay tax. Anyone whose billing address is in Japan is considered a customer in Japan in this case. We recommend that you consult with your tax advisor to determine whether you have tax obligations in connection with this reassessment.

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: