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This article applies to selling in: Canada

How Amazon Tax Exemption Program (ATEP) Works

The Amazon Tax Exemption Program is an optional service available to sellers using Amazon’s Tax Calculation Service. Your participation is automatic when you save your Tax Settings, unless you opt-out. See How to Enroll in ATEP for more information.

This program allows a pre-enrolled ATEP Buyer to apply their tax exemption to a participating seller’s offer, at the time of purchase. When a buyer applies their exemption to an order, the related exemption document will be available in your Tax Document Library, approximately 48 hours after the order is completed.

Buyers who do not participate in ATEP or are otherwise unable to apply their exemptions at the time of purchase may request a refund of taxes from you. Additional information about post-order refund of taxes is available in the Tax Calculation Services Terms.

By participating in ATEP, you agree to accept both the Tax Calculation Services Terms and the tax exemption information, document, or certificates provided by buyers and made available by Amazon in connection with a buyer’s exempt purchase through ATEP.

ATEP FAQs

What is the benefit of participating in ATEP?

Sellers who participate will experience automatic handling of buyer exemptions. Automatic handling includes collection of a buyer exemption document, on a per order basis, storage of the document in our system with access through your seller account Tax Document Library, whenever you need it.

Is ATEP participation mandatory?

No. ATEP is an optional service; however, participation may help reduce the number of buyer questions you receive regarding your tax settings or requests for post-order refund of taxes charged on an order. It is the seller’s responsibility to communicate with any buyer to answer questions and respond to requests for post-order refunds of taxes on all orders, FBA or otherwise.

Can I issue post-order refund of taxes?

Yes. You can issue a concession refund and generate a manual credit note for the buyer.

What information does Amazon collect from buyers during enrolment?

The standard information collected from buyers includes the purchasing organization name, type of individual or organization (e.g. government, reseller, diplomat, etc.); jurisdictions (federal and/or provincial) for which their exemption is applicable, and other information, such as a provincial sales tax registration numbers, or signed exemption certificates.

The exemption types supported by ATEP and the specific information we collect from buyers are available under question “What types of exemptions and information can I expect?” towards the end of this document.

Does Amazon validate the buyer information?

The buyer is responsible to provide and maintain valid exemption information and to appropriately apply their exemption to their purchases. Amazon does not validate the accuracy of any information provided by a buyer.

How does the exemption work?

When a participating buyer is purchasing from a participating seller, and the buyer has an active exemption for the destination of the order, their exemption automatically applies to all items in the order. During checkout, the buyer may remove the exemption from one, many, or all items on the order, if a particular item does not qualify for the exemption.

Exemptions are specific to the taxing jurisdictions that have been set up on the buyer’s account (i.e. Goods and Services/Harmonized Sales Tax; British Columbia, Saskatchewan, Manitoba, Quebec), meaning a buyer will not be offered an option to apply a British Columbia provincial exemption on an order destined to Manitoba.

How do I identify orders with an exemption?

To identify an order with a tax exemption, use reporting available in your Tax Document Library. Your Sales Tax Report will populate data in the Buyer_Exemption columns and exemption documents will be available in the Tax-Exemption Certificates tab within 48 hours of order completion. For more information, see the Tax-Exemption Certificates help page.

How do I access the exemption document?

Exemptions applied to purchases will be available to search in your Tax Document Library within 48 hours from the order completion. Instructions for accessing an exemption document are available on the Tax-Exemption Certificates help page.

Can a buyer’s ATEP enrolment be retroactive?

No. Both buyer and seller must participate in ATEP at the time of the order for a buyer to apply their exemption to an order. Post-order enrolment in ATEP is not retroactive and will only be available for future orders.

A buyer may request a post-order refund of taxes from a seller or Amazon’s customer service. Our Tax Calculation Services Terms explains when tax refund is supported and the party responsible to process the refund.

If I issue a refund of taxes, will Amazon supply the buyer exemption document?

No. Similar to product refunds, for any exemptions that are not applied through the ATEP at the time of purchase, sellers are responsible to obtain, validate, and retain any exemption documentation necessary to support a buyer’s refund request. If you issue any refund prior to obtaining any necessary documentation, you may not be able to obtain the document.

Will a buyer receive a tax invoice?

For regular purchases and full order refunds, tax invoices and credit notes will be automatically generated, include both buyer and seller information, and be accessible to both the seller and the buyer. In certain circumstances a customer may be required to contact the seller for a copy of the tax invoice. Buyer’s information includes the purchasing organization name, provincial sales tax registration/reseller number, and exemption type. Seller information includes the seller account legal entity information and your tax setting jurisdiction registration number(s). See the Tax Calculation Services Terms for more information.

What types of exemptions and information can I expect?

The following exemption types are currently supported through ATEP on Amazon.ca:

  • Items purchased solely for resale/lease (“Resale”) and items purchased solely to become part of goods for resale or lease (“Industrial Production/Manufacturing”): These exemption types are available for British Columbia, Saskatchewan, and Manitoba. A buyer must provide a British Columbia, Saskatchewan, or Manitoba provincial sales tax registration/reseller number; or complete a FIN490 when they are in British Columbia and have no British Columbia Provincial Sales Tax registration number.
  • Diplomatic and Consular Personnel (“United Nations/Diplomat”): This exemption type is available for British Columbia, Saskatchewan, and Manitoba. Buyers must provide a copy of their Consular Status Identify Card, and additionally in Manitoba, their RST number.
  • Production Manufacturing and Equipment: This exemption type is available for British Columbia. Buyers must complete a FIN492.
  • Items purchased solely for creating a prototype or copy of a prototype (“Research and Development”): This exemption type is available for British Columbia. Buyers must provide their British Columbia Provincial Sales Tax number, or complete a FIN490 when they are in British Columbia and have no British Columbia Provincial Sales Tax registration number.
  • Provincial/Territorial Governments exempt from Goods and Services/Harmonized Sales Tax (“GST/HST”) and/or Quebec Sales Tax (“Provincial Government”): This exemption type is available for GST/HST and Quebec. Eligible provincial governments and territories (Alberta, Saskatchewan, Manitoba, Yukon, and Northwest Territories) must complete a signed declaration.
  • Provincial/Territorial governments exempt from Provincial Sales Tax (“Provincial Government”): This exemption type is available for British Columbia, Saskatchewan, Manitoba, and Quebec. Eligible provincial government and territories must provide their provincial sales tax registration/reseller number, if applicable.
  • Federal Government exemption from Provincial Sales Tax (“Federal Government”): This exemption type is available for British Columbia, Saskatchewan, and Manitoba. An eligible federal government customer (a Federal government body that is not listed in Schedule I of the Federal-Provincial Fiscal Arrangements Act (Canada) 1985 or in Part I or Part II of Schedule III of Financial Administration Act (Canada)) must provide their British Columbia, Saskatchewan, or Manitoba provincial sales tax registration/reseller number.

The exemption types supported in ATEP are subject to change at any time.

See also

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