Updates Regarding Sales Tax in Washington
From Amazon Ads on 2025-09-22 12:48 pm
This notification only applies to customers with a Washington (US) based business address
Dear Customer,
On May 20, 2025, Washington Senate Bill 5814 was signed by Governor Bob Ferguson, which expands the existing sales tax to include advertising services. The Washington state law specifically includes online advertising services as taxable retail sales and encompasses all aspects of online advertising production and placement services.
As a result of this Washington state law, a number of your Amazon Ads purchases will be subject to Washington state sales tax beginning October 1, 2025, including all Display and Sponsored Ads products.
FAQs
1. Who is impacted by this Washington state law?
While we are waiting on specific guidance from the Washington Department of Revenue (DOR), we expect this change to only affect customers with billing addresses in Washington that do not have a valid exemption certificate.
2. Does this Washington state law only apply to Amazon?
No, Bill 5814 applies to all businesses that sell in-scope advertising products and services to customers based in Washington.
3. How is Washington Sales Tax calculated?
Washington Sales Tax is calculated based on the gross sales value and the rate applicable in the location of your Washington billing address, including the specific county, district, and/or municipality. The rates applied will range between 9% and 10.35%.
4. Will I see Washington Sales Tax displayed on my invoice?
Yes, beginning October 1, 2025, customers subject to Washington Sales Tax will see an aggregated value labeled ‘US Sales Tax’ on their invoice.
5. Will this Washington state law only impact my US spend?
No, Bill 5814 applies to US and non-US advertising businesses selling inventory to customers based in Washington. As a result, you may see Washington Sales Tax charged on your invoices from non-US Amazon Ads entities.
6. What is a valid exemption certificate?
Valid exemption certificates for advertising services are expected to include:
- Reseller certificates: you are an agency or reseller that purchases advertising services from Amazon for the purpose of resale to advertisers.
- Multiple points of use (MPU) certificates: you use the advertising services you purchase from Amazon across multiple jurisdictions.
7. Do I need to take any action?
If you do have a valid exemption certificate, you will be able to add it to your profile on 9/30 by doing the following:
- Display Ads customers: Go to your billing center in Rodeo => Click on the link in the Washington banner to open the popup => click on the ATEP link for each marketplace to go to the ATEP portal to upload your tax exemption.
- Sponsored Ads customers (non-seller): Go to your billing center in Ads Console => Click on the link in the Washington banner to open the popup => Click on the ATEP link for each marketplace to go to the ATEP portal to upload your tax exemption.
- Sponsored Ads customers (sellers): Go to your Business Settings in Seller Central => Under Tax Exemption & Licenses, select Tax exemption => Click Add Tax Exemptions.
8. Has the Washington DOR provided any resources?
While we are still waiting for specific guidance, the Washington DOR has published a FAQ as to when customers are able to use a MPU exemption for advertising spend. Please refer to the Frequently Asked Questions About ESSB 5814 on the Washington DOR website here.
© 2025 Amazon.com, Inc. or its affiliates. All rights reserved. Amazon, Amazon Ads, Amazon.com, and the Amazon logo are registered trademarks of Amazon.com, Inc. or its affiliates.
Amazon.com, 410 Terry Avenue., Seattle, WA 98109-5210