Amazon is the name that cannot leave peoples’ mouths. You would be shocked to find out that this company started in a garage, initially selling books. Amazon is now known as the world’s most beneficial brand. If you are looking for an online store that will sell you whatever you need and you can think of, then Amazon is your go-to store. As a growing company, it has introduced Amazon Prime for its loyal customers. Let’s learn ‘Does Amazon Prime charge tax?’.
Amazon Prime is a customer subscription that allows you to pay a certain amount of monthly or annual amount. You can then receive benefits that are not available to regular Amazon shoppers but exclusive to Amazon Prime members only. If you are wondering if you will be charged tax, then stick around. Keep reading to find out how getting an Amazon Prime membership will make you subjected to paying tax.
What is Amazon?
The number one online go-to store has any products you can think of. Amazon is the largest online marketplace selling anything that customers are looking for also allowing you to compare prices between different sellers. If you are running a business and wish to sell your products online, then you can go to Amazon.
Amazon allows 3rd party businesses to sell their products in their online store. Businesses and individuals can use this marketplace to their advantage as it will get the customers and help generate sales for them. With Amazon being a popular company, sellers can find it convenient.
What is Amazon Prime?
With Amazon Prime, you can be subjected to many benefits with free one-day or two-day shipping to mention one. You can receive these benefits by signing up for an Amazon Prime subscription which gives you two payment options. Either opt for a monthly subscription or an annual subscription for greater savings. Amazon Prime gives its potential subscribers a 30-day trial so they can try out the service to see if they would like to sign up for a membership.
Monthly Subscriptions:
A monthly subscription will cost you $12.99, and you will get all the benefits that Amazon Prime subscribers receive. However, prices are said to be going up with the monthly subscription increasing to $14.99 without tax.
Annual Subscriptions:
An annual subscription will only cost you $119 which is a greater deal than a monthly subscription. However, with prices going up, an annual subscription will now cost you $139 without tax.
Does Amazon Prime Charge Its Customers Tax?
State taxes are the reason why Amazon Prime charges its customer’s taxes. When you are being billed, you might come across an extra charge from Amazon Prime. This extra charge is the sales tax that you are being charged. Tax charges are different for different states, and they are dependent on the state’s tax laws.
Amazon Prime Benefits
To be discussed are the most popular Amazon Prime benefits. These benefits are irresistible, and they keep getting Amazon Prime new customers. Services that Amazon Prime offers:
- Free Shipping
Amazon Prime offers the fastest delivery service for your convenience. If you are a regular Amazon Prime shopper, you can have one specific day in a week for your deliveries. So, you can get all of your weekly orders in just one delivery day. Get free one-day, two-day, or same-day shipping with Amazon Prime.
- Free Grocery Deliveries With Amazon Fresh
If you live close to an Amazon Fresh store you can get your groceries delivered to you in just 2 hours. Other customers that want to shop at Amazon Fresh but do not stay close to the store can still get their groceries delivered to them for free.
- Free Streaming With Prime Video
Stream a range of free movies, shows, and sports on Amazon Prime Video.
- Free Streaming With Amazon Music
Stand a chance to shop discounted items that are specifically marked with Prime members only signs. Additionally, receive 10% off sale prices in-store and online excluding alcohol. Get your groceries delivered to you in 2 hours but you will be charged extra. You will also be able to pick up your groceries in-store within an hour of purchase. Note: Check for participating stores.
- Prime Day
Amazon Prime day is a sale exclusive to Amazon Prime subscribers only. The prime day occurs once a year or it can take place in 2 days where customers can shop a range of sale items including appliances.
Conclusion
Amazon does not charge tax on its own, but if you are running a company and selling products then you have to follow the tax laws set out by your government. Thus, Amazon Prime is obliged to charge tax. Amazon Prime will charge tax on your purchases which is why you might find you have been charged extra. There are many more benefits that come with an Amazon Prime subscription. Be sure to visit the Amazon website to find out what other benefits and services they have to offer.
Frequently Asked Questions
- Which Areas Does Amazon Charge Tax?
About 34 states in the United States need Amazon to charge Prime members’ tax.
- When Did Amazon Start Charging Tax?
Amazon Started collecting tax in 2011 in five states.
- If I Am Selling On Amazon, Will I Be Charged Tax?
You will have to charge and collect tax from your customers based on the fact that your product can get tax charged on it.
