Want to avoid paying sales tax on your author copy orders from KDP or IngramSpark? You may qualify for tax exemption with a resale certificate or tax-exempt status. This guide explains how to apply for exemption, upload documentation, and what to expect based on your location and publishing platform.
KDP
While you typically pay the printing cost of your book when ordering author copies through KDP, sales tax may be added depending on your location. To avoid paying sales tax, you have a few options:
- Resale Certificate: If you have a resale certificate or permit, you can usually purchase author copies without paying sales tax, as you will be reselling the books. Check with your local tax authority for the specific requirements and documentation needed.
- Amazon Tax Exemption Program (ATEP): If you're a tax-exempt organization (like a nonprofit or educational institution), you can enroll in Amazon's Tax Exemption Program. However, it's important to note that this program is not typically applicable to individual authors ordering copies for personal use or resale.
- Tax-Exempt Status: In some states, certain individuals or organizations might be exempt from sales tax on specific purchases. Check your state's tax laws to see if you qualify for any exemptions.
Here's how you can potentially avoid sales tax when ordering author copies:
- Resale Certificate: If you have a valid resale certificate, contact KDP support and provide them with your certificate information. They should be able to remove the sales tax from your author copy orders.
- ATEP: If you're a tax-exempt organization, you can enroll in the program through Amazon. However, this is usually not applicable to individual authors.
INGRAMSPARK
IngramSpark handles sales tax similarly to KDP, where it may be added depending on your location. To avoid paying sales tax on your author copies through IngramSpark, you can try the following:
- Resale Certificate: If you have a valid resale certificate, you can upload it to your IngramSpark account. This should exempt you from sales tax on your author copy orders, as you will be reselling the books.
- Tax-Exempt Status: Some organizations or individuals may be exempt from sales tax in certain states. Check your state's tax laws to see if you qualify. If you are exempt, provide the necessary documentation to IngramSpark to remove the sales tax.
Here's how you can upload your resale certificate to IngramSpark:
- Log in: Sign in to your IngramSpark account.
- Account Settings: Go to your account settings.
- Tax Information: Look for the section on tax information.
- Upload Certificate: There should be an option to upload your resale certificate. Follow the instructions and submit your document.
Once your resale certificate is approved, IngramSpark should remove the sales tax from your future author copy orders. If you have any issues, reach out to their customer support for assistance.
Remember: Tax laws and regulations vary depending on your location, so it's important to consult with your local tax authority or a tax professional for specific guidance on how to avoid sales tax on your author copy purchases.
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