Foregin sellers on .com, do you still get a 1099?

So this question is for non-US based sellers selling on .com, do you get a 1099 in seller central, reports, tax reports?

Or do you get something equivalent?

Any Canadian sellers on .com?

U.S. Income Reporting & Tax Identity Collection FAQ

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Important: Information on this page does not constitute tax, legal, or other professional advice and must not be used as such. If you have other questions, contact your tax, legal, or other professional adviser.

There has been a recent change in tax reporting rules relating to U.S. third-party settlement organizations and payment processors, including Amazon. The law reduces the thresholds from $20,000 in unadjusted gross sales and more than 200 transactions down to $600 and no transaction threshold. However, the Internal Revenue Service (IRS) has delayed the effective date of the new reporting threshold until January 1, 2023.

For calendar tax years before 2023 (2022 tax year and earlier), Amazon is only required to issue a Form 1099-K if you had:

  • More than $20,000 in unadjusted gross sales, and
  • More than 200 transactions

If you did not meet both of these thresholds, you will not receive a Form 1099-K for the 2022 tax year.

Note: Certain states tax reporting thresholds may differ from the federal thresholds. Consult the IRS and your tax professional advisor to understand your state and federal reporting obligations.

To provide your information to Amazon, go to your seller account information and use our interview process that will guide you through entering your taxpayer information and validating your W-9 or W-8BEN form.

I am a U.S. taxpayer. What information do I need to provide to Amazon?

By completing the tax interview in your seller account, you will be providing Amazon the appropriate tax identity information in the form of a W-9 or W-8BEN form.

For U.S. taxpayers, a tax identification number (TIN) is required by the IRS for the administration of tax laws. In most cases, your TIN is either an Employer Identification Number (EIN) or a Social Security Number (SSN).

I am a foreign seller and not a U.S. taxpayer. Do I need to provide any information to Amazon for U.S. tax purposes?

Yes, even if you are a non-U.S. taxpayer, you still need to provide us information. The responses you give to the tax interview questions will create the appropriate tax form on your behalf.

IRS regulations require non-U.S. taxpayers to provide Form W-8BEN to Amazon in order to be exempt from U.S. tax reporting requirements. An IRS Form W-8BEN expires on December 31 following three years after a seller provides it to Amazon. When prompted, foreign sellers are required to retake the tax interview to submit a new form.

Additionally, Amazon must obtain identifying information, such as a tax ID, from certain sellers on Amazon’s non-U.S. stores. In general, IRS regulations require Amazon to collect identifying information from sellers who have a U.S. address, U.S. banking information, or other identifying information connecting the seller to the U.S.

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I am not going to come even close to hitting the reporting threshold. Why does Amazon require my tax identity?

All sellers on Amazon.com, regardless of the number of transactions they have in a calendar year, are required to complete the Tax Information Interview.

I received an email stating that my Form W-8 is expiring or has already expired. How do I give Amazon new or updated information?

The U.S. Internal Revenue Service (IRS) requires that Amazon maintain a current Form W-8 for sellers, individuals, or entities who are not U.S. persons. For more information about how the IRS defines U.S. persons, see here.

If you have received an email from Amazon stating that your Form W-8 is expiring or has expired, you must complete an updated tax interview to continue selling. To access the tax interview, see instructions here. If you are a non-U.S. person, failure to maintain a current Form W-8 will result in suspension of your selling privileges.

How do I update my tax information and legal business name?

To update your tax information, you must complete the U.S. Tax Identity Information Interview.

To update your legal business name:

  1. Go to Settings and click Account Info.
  2. Under Business Information, click Legal Entity.
  3. Enter your Legal Business Name and click Update.

I have provided my tax identity information. How long will it take to see if it is valid?

After you update your tax identity information, the Legal Entity section of your Account Info page will display Provided and Pending Validation. If we find your information doesn’t match IRS records, we will send you an email with instructions on how to proceed. If you choose to mail your hard copy document instead of consenting to electronic signatures, we will require 10-15 business days to process upon receipt.

The validation process can take up to eight weeks from the time Amazon receives your information, either electronically or via mail, if you checked the box that states “I have received my EIN/SSN within 60 Days” while taking the tax interview.

As I understand things, Foreign Sellers that have submitted an IRS Form W-8BEN, should receive an IRS Form 1042-S rather than an IRS Form 1099-K.

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