Tax Handling for Amazon Orders

Amazon by Codisto provides tax details on Amazon orders transferred to Shopify where it is the merchant's responsibility to remit the taxes. On some orders, there is no tax obligation for the merchant as Amazon has already met the tax obligations.

The Seller Central order shows tax, why is there no tax on the order in Shopify?

By default, for orders where Amazon collects and remits taxes, the order details sent to Shopify exclude the tax as there is no tax obligation on the merchant  As such, the order total will be net of the tax amount. By excluding the tax, we achieve the following:

  • The total of the order sent to Shopify will match the payment the merchant will receive from Amazon (less Amazon fees)
  • The tax details on the order sent to Shopify will match the tax obligation (none, because Amazon has already met the tax obligation on the order.) 

The order in Seller Central will show:

Tax Collection Responsible Party: Amazon Services LLC

Per Amazon's help article:

Amazon calculates, collects, and remits tax on sales made by merchants shipped to customers located in the states that have enacted Marketplace Facilitator, Marketplace Fairness, or similar laws. These laws shift collection responsibility from the merchant to the marketplace facilitating the merchant's sale. For more information, go to Marketplace Tax Collection.

What if I want the tax sent to Shopify anyway?

You can change the behavior in Settings. By default you will see:


The alternative option will show a warning explaining the implications of the change


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