How To Pay 0% Tax On Amazon Merch

Did you know that there is a way you can pay 0% tax on Amazon Merch?Watch the video or read below to find out how I did it.

Hint: The steps I’m about to share will only work for non-U.S sellers. You have to be someone working outside of America for this to work.

Here’s the 5 step plan I followed to get 0% tax.

 

  1. Log in and head to My Account area

Log in to your Amazon account. Head over to My Account and click on the Tax Information tab. If you are filling it out for the first time you are good to go. But if you have already submitted your tax information in the past you need to click on Update Tax Information.

 

  1. Take the Interview

Once you click on Update Tax Information you’ll be guided to a button that says Take Interview. Press that and you’ll be prompted to a Merch by Amazon Tax Information interview. This is where you tell them that you are not a US seller.

Tax Information Interview Page
Tax Information Interview Page

 

  1. Fill out your Tax Information

Now, this is the most important part of the deal. I filled it out incorrectly last time and ended up getting a 30% withholding tax deduction on my first month’s earnings.

Follow these steps:

  • Select the Type of Beneficial Owner you are – you are most likely an “Individual” unless you have a company registered in your home country.
  • Select your country where you are living
  • Enter your full name
  • Enter your address details and mailing address
  • Select no, where it says are you acting as an agent or intermediary.

IMPORTANT: Don’t check any of the boxes in the U.S. person tests – individuals. If you click on any of these, it’s going to register you as an American citizen and charge you a Tax based on American rates.

U.S. Person Tests - Individuals
U.S. Person Tests – Individuals
  1. Choose I have a Foreign (non-US) Income Tax Identification Number

Select the option that says ‘I have a foreign (non-US) income tax identification number’. Amazon basically needs to know that you are going to give your taxes in your own country. Then Click Save and Continue.

Tax Identification Number
Tax Identification Number

 

  1.  Fill in the country you live in and check mark the box where it says you have reviewed the tests that appear in Article 4 of the treaty

Scroll down and it’s going to ask you for you non-U.S. tax identification number.

Foreign (non-US) Income Tax Identification Number
Foreign (non-US) Income Tax Identification Number

 

If you are in the UK, you might be wondering what on earth is a Tax Identification Number (TIN)? From what I know, you can put your National Insurance Number in this box.

Put in your National Insurance Number and proceed to Save and Continue. Amazon will now prompt you on a screen that says, Congratulations you are now on a 0% tax.

 

So, simple as that. If you have a foreign Income Tax Identification Number, you can register yourself as a Non-U.S. person on Amazon and get 0% withholding tax. You don’t need to pay the taxes because you’ll be paying the ones in your own country.

DON’T FORGET!

If you don’t put the TIN, Amazon is going to, by default, tax you with 30% of your monthly sales. On the other hand, if you are in the UK, you can put your National Insurance Number. If you are in any other part of the world you need to know your Tax Identification Number in order to get a 0% tax on Merch by Amazon.

 

I hope that’s useful. I didn’t know this when I first started with Merch by Amazon. I’m sure lots of people out there have a similar problem. Imagine how much you can save without the 30% tax charged by default just for incorrectly filling out the form!

Have you faced any problems setting up your tax settings on Amazon Merch? Do you know of other ways you can get around the tax deduction as a Non-U.S. Citizen? Do let me know in the comments section. I’m really interested in knowing what has worked for you and all the different approaches that can help one get around similar problems.

If you’d like to learn more about starting up with Merch By Amazon, then download the free Amazon Merch Getting Started guide here.

One thought on “How To Pay 0% Tax On Amazon Merch”

  1. I tried to change to 0% tax but when I got to the TIN section, there was only 2 options
    1) I have a Non-US TIN (which is already ticked)
    2) I have a US TIN (not ticked)
    No other options are available. How?

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