Tax Guide for Sellers and Resellers on AWS
Last updated: April 3, 2025
At Clazar, we understand that taxation is one of the most critical and confusing aspects of selling through AWS Marketplace—especially when working across multiple geographies, using resellers, and dealing with CPPO (Channel Partner Private Offers). This guide is designed to clarify who is responsible for tax, how AWS handles it, and what you, as a seller or reseller, should expect.
🛠 TL;DR: Who Handles Taxes on AWS Marketplace?
Scenario | Seller of Record | Who collects & Remits Tax? | Implications |
Public Offers | AWS | AWS | AWS calculates, collects, and remits sales/VAT/GST. |
Private Offers (PO) | AWS | AWS | Same as public offer. AWS takes full tax responsibility. |
CPPO (Channel Partner Private Offer) | Channel Partner (Reseller) | Reseller | Reseller must handle tax collection, remittance, and reporting. |
Distributor of Record (DRO) | DRO (e.g., Carahsoft) | DRO | Often used for Gov sales. DRO handles full tax compliance. |
🧩 Multi-Entity Tax Setup – Simplified
If you operate under multiple global entities (US, EU, APAC), AWS allows each entity to register independently under the correct local Marketplace Operator (e.g., AWS Europe Sarl, AWS Japan). This ensures:
Correct jurisdictional tax handling
Region-specific payout structures
Transparent, compliant invoicing for customers
Pro Tip: AWS determines tax based on the buyer’s location, not seller’s, so aligning Marketplace entities with target regions is essential.
🤝 CPPO and Tax Responsibilities
In a CPPO, the channel partner becomes the seller of record, and this shifts tax responsibility away from AWS:
The reseller must calculate, collect, remit, and report all applicable sales taxes.
AWS does not show detailed tax information on the invoice to the ISV.
Buyers typically receive a compliant invoice, but sellers might not see it due to anti–price-fixing constraints.
🌍 What Taxes Are Handled by AWS?
AWS Marketplace handles tax remittance across 40+ countries including:
US: Sales and Use Tax (state + local, incl. NYC/Chicago specifics)
EU/UK: VAT
Australia, India, Singapore: GST
Brazil: Special tax entity arrangements (AWS operates local entity for remittance)
If the buyer is in a country where AWS does not remit tax, the seller or reseller must engage local tax advisors to ensure compliance.
📃 Documentation, Invoices & Reporting
AWS generates tax-compliant invoices for customers, visible based on the offer type.
Sellers receive payment reports via SDDS (Seller Data Delivery Service).
Tax-exempt buyers can upload exemption certificates within AWS, which automatically applies to relevant transactions.
⚠ In CPPO transactions, the ISV might not see the buyer invoice, and tax handling visibility is limited. Clazar fills this gap by integrating AWS reports into your Salesforce or internal finance stack.
✅ What Clazar Provides
At Clazar, we help sellers automate:
Usage and tax reporting per offer and per geography
Salesforce or Data Warehouse integrations to unify Marketplace data
Visibility into CPPO flows even when AWS restricts invoice access
Best practice recommendations for tax setup by region/entity
We don’t offer tax advice—but we equip your finance and tax teams with everything they need to work with local authorities or AWS tax experts.
💬 Final Guidance
Understand your role: Tax responsibility depends on who is the seller of record—you, the partner, or AWS.
Leverage AWS automation: AWS handles tax when it’s the seller of record—no need to file locally.
Plan globally: Register each selling entity on the correct AWS regional marketplace.
Use Clazar for clarity: We don’t replace your finance team, but we make it easy for them to operate confidently.