Amazon 406. Tax Calculation on Orders

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Tax Calculation On Incoming Amazon Orders

When retrieving your order information from Amazon, we noticed that they never return to us the applicable sales taxes. This situation may lead your customers believe that their order was not subject to sales taxes.

We have just released a fix for this problem which works by approximating the amount of taxes as if the transaction was placed in your WebStore. This means that we use your current tax configuration in your WebStore Manager to figure out how much tax was charged by Amazon.

The option, known as Report Applicable Tax for Orders , is illustrated in the next screenshot and is part of the Extended Order Integration Options. It can also be found in the Amazon Setup Wizard.

When enabled, the approximated sales taxes are computed and made available to you when the order is pulled at the Point Of Sales.

We hope you found this option useful. Let us know your feedback!

Hi Franclin,

You may want to mention that this is found in the Amazon Setup Wizard. I spent about 20 minutes searching for this.


Hi Jim,

Thanks for your valuable feedback. We will take it on board.



I’m having trouble with this. When I enable this as you’ve shown above it enables Amazon Order Tax Calculation which then charges sales tax to everyone and not just my California customers. I have all the states configured as exempt except California which I have set on Inherited(RMS:Item based). What am I doing wrong?

Hi Jim,

Thanks for letting me know. All that option does is to give you an estimation of the tax paid by your customers in Amazon. The rationale behind it is that Amazon doesn’t always return the applicable sales taxes to a given basket.

In your case, it turns out that they do provide that amount and therefore there is no need for you to use this option. We will just ensure that when Amazon returns the applicable sales taxes, the item is marked as taxable. Finally, it is worth mentioning that the reported tax amount is what your customers paid in Amazon and not something that we have added afterwards.

Let us know your thoughts please.


That’s fine as long as there’s a way for it to automatically set the transaction as taxable in RMS and list the correct sales tax.

What we have to do now is to manually set the transaction as taxable, but that sets the tax to our local tax and not the state sales tax so the POS reflects more tax than what was actually collect by and distributed to us by Amazon creating a bit of a bookkeeping nightmare.

Hi Jim,

We have now corrected that for you. When Amazon reports an applicable tax amount on any item in the basket, we include it automatically and flag the item as taxable.

Let me know if that is working to your satisfaction please.


Hi Franclin,

Sorry for the delay in my reply. It’s working great, thanks!