When selling on Amazon via M2E Multichannel Connect, it's essential to understand how tax data is handled during order creation. M2E ensures that tax information received from Amazon is processed correctly and sent to your store in line with your store’s tax configurations. This helps you maintain accurate pricing, generate compliant invoices, and meet regional tax requirements.
Basic tax handling #
When calculating taxes, M2E takes into account:
- Tax data received from the Amazon order (when available)
- Tax configurations set in your store
Amazon tax settings #
Amazon orders may not always include detailed tax breakdowns in the order data it sends via API. When tax data is missing, M2E applies a standard tax rate based on the buyer’s country, so your store receives a reasonable estimate for tax purposes.
Store tax settings #
Each e-commerce platform connected via M2E has its own way of handling taxes.
Some platforms expect catalog prices to include taxes, while others calculate tax separately at checkout. Many platforms offer a toggle for tax-inclusive or exclusive pricing.
ℹ️ If you're the one handling tax payments for your marketplace sales, the correct tax rate and amount will be shown in your Store orders.
However, if the marketplace takes care of tax collection and remittance (as is common with U.S. orders), you might not want that tax data included. With M2E Multichannel Connect, you can easily adjust a setting to show only the tax information that matters to you.
How M2E sends tax data #
M2E recognizes your store’s tax settings and adjusts Amazon order data to match your store’s tax handling preferences.
Example 1: Your store calculates tax
- M2E sends the item price excluding tax.
- If tax data is available from Amazon or M2E applies a standard rate, it is sent separately so your store can handle it properly.
Example 2: Your store uses tax-inclusive pricing
- M2E sends the item price including tax.
- A tax breakdown is still provided when available to support accurate invoicing.
Tax exclusion for Amazon US & CA orders #
In the United States and Canada, Amazon is responsible for collecting and remitting sales tax for most states. This simplifies tax handling for you:
- The buyer pays the tax at checkout.
- Amazon handles the tax remittance directly to the authorities.
- You don’t need to calculate or collect tax for these orders.
If you don’t want the tax data to appear in your store, M2E offers a setting to exclude Amazon tax amounts from imported orders.
How to exclude US tax data:
- Go to your store account in the top menu.
- Navigate to Settings > Orders > Tax Collection.
- Enable the Exclude tax collected by US-based Marketplaces option.
This option prevents unnecessary tax details from being shown in your store invoices.
Tax exclusion for Amazon FBA orders #
If you use Amazon FBA (Fulfillment by Amazon), Amazon handles the entire fulfillment process, including shipping and tax collection. In most cases, you don’t need this tax data imported to your store.
M2E allows you to exclude tax amounts (along with shipping costs) from Amazon FBA orders:
- Go to your Amazon account in the top menu.
- Navigate to Settings > Orders > Amazon FBA Orders.
- Enable the Exclude shipping cost details (inc. taxes) for Amazon FBA orders option.
ℹ️ If you have questions about how taxes are calculated in your Amazon orders, please contact our support team.
Not sure about your tax responsibilities? Your accountant or tax advisor can help you figure out what’s needed.
