How to apply for Amazon Tax Exemption

Save it, before you ever spend it. That’s how simple savings can be with Amazon’s Tax Exemption Program (ATEP). ATEP makes it easy for your business to make regular Amazon Business purchases without the added burden of sales tax. As a small business owner, understanding and leveraging this program can make substantial savings that much easier.

Figure out if the ATEP is right for you in this easy 5 min read. We’ll go through the ins and outs of the program, how it works, who qualifies, and what you need to get started. We’ll break down the eligibility criteria, show you how to choose the right account, and provide a step-by-step walkthrough of the application process. Basically, everything you need to apply and start saving. Because as a small business owner, the best taxes, are no taxes. 

Choosing the right account

Already have a personal Amazon account? No problem. You can either convert your personal account to an Amazon Business account or keep both accounts separate. We recommend keeping personal and business expenses separate to stay organized, as it makes tracking business expenses and filing your taxes easier. Plus, with Amazon Business you get access to even more business-focused tools, bulk discounts, and business savings.

What you'll need to get started

• Where you’re enrolling: each state or jurisdiction has its own rules, so getting this right is crucial.
• What type of organization you’re representing: are you a small business, a non-profit, or a government agency? This helps determine which exemptions apply to you. You’ll need your organization’s legal name and address handy to verify your eligibility.
• In some cases, you’ll need specific documents like tax exemption number or form.
  • General business licenses or ID cards won’t be accepted.
  • Be prepared to upload supporting documents, like a 501(c)(3) letter for non-profits or other relevant documents that substantiate your eligibility for the program if needed.

Getting set up with tax-free shopping

So what’s the easiest way to get started? The Wizard. Well, our Wizard. The Wizard setup will guide you through the whole process, asking a series of simple questions to figure out the right form for your tax exemption. From there you can preview it to make sure it’s exactly what you need. If everything looks good, you’ll be asked to sign and agree to the terms. The best part? Some exemptions are active within 15 minutes of completing enrollment. 

Start Tax Exemption Wizard

1. Start by logging into your Amazon Business account and heading to the tax exemption section under your account settings.
2. You have two options to submit your information: 
   • Upload your forms. Uploading can take up to 24 hours for approval. 
   • Manually enter the details. This typically takes about 15 minutes for approval. You may still need to upload the actual document depending on the type of document and type of  exemption your business qualifies for. 
3. Make sure everything is clear and complete to avoid delays.
4. Once your information is submitted, you’ll need to digitally sign the certificate and agree to the terms.
5. Within about 15 minutes, your tax exemption will be active and you’ll be on your way to tax-free shopping!

Tips for maximizing savings with tax exemptions

The ATEP automates your tax exemptions, saving you the hassle of manual refunds and eliminating the need for manual tax refund processing, which can be time-consuming and prone to errors. As an added bonus, ATEP also works seamlessly with participating third-party sellers, automatically extending your savings across a huge range of products.

To keep your savings on track, review your exemption status regularly. To really up your game, leverage Amazon Business tools to track your spending and find even more ways to save. By understanding your spending habits, you can optimize your use of the tax exemption program and ensure that you are getting the most bang for your buck.