Amazon US: Update Tax Info by Dec 31 or Face Limits

What's changing and who must act

Amazon's U.S. marketplace has notified many sellers that they must update tax information to comply with new IRS requirements. Non-U.S. taxpayers must submit a valid W-8 form by December 31, 2025. Failure to submit on time may result in account limitations that could affect listing, disbursements, or other selling privileges.

This Amazon tax update also lowers the annual reporting threshold: the declaration trigger has been reduced from USD 5,000 to USD 2,500, expanding coverage to more small and mid-sized sellers.

What non-U.S. sellers need to do

1. Prepare your W-8 form
   Complete the appropriate W-8 form based on your business type (for example, W-8BEN-E for entities or W-8BEN for individuals). Ensure the information matches your legal records.

2. Name formatting for China-registered entities
   If you are a China-registered company, enter your full legal company name in Hanyu Pinyin (romanized Chinese) in the taxpayer identity field, and select “Non-U.S. taxpayer” as your status.

3. Submit in Seller Central
   Go to Seller Central → Notifications → Regulatory Compliance to review the notice, follow the guided workflow, and upload or e-sign the required documents.

4. Verify payout and address details
   Your legal name, principal address, and bank/payee details should align with what appears on your W-8 form to avoid mismatches or additional review.

Why Amazon is asking for this

As the payment platform, Amazon is required to collect and report seller tax information for U.S.-source income in line with IRS rules. By updating your non-U.S. seller compliance documentation on time, you help Amazon meet its withholding and reporting obligations and keep your own account in good standing.

Consequences of missing the deadline

• Account limitations at or after year-end
• Potential holds on disbursements until information is provided
• Temporary inability to list or edit certain offers

Quick compliance checklist

• Deadline noted: December 31, 2025
• Correct W-8 form selected and fully completed
• Company name in Pinyin (for China-registered entities)
• Non-U.S. taxpayer status selected
• Details in W-8 match Seller Central legal and payout info
• Submitted via Regulatory Compliance notifications and confirmation saved

Practical tips for a smooth submission

• Keep a PDF copy of your submitted W-8 form and the Amazon confirmation page.
• If your company structure, address, or ownership changed in 2025, update those fields first in Account Info before re-submitting tax documents.
• Revisit the Regulatory Compliance tab after submission to confirm there are no outstanding actions.

How Forest Shipping can help

Tax compliance and logistics often move in tandem—especially when year-end sales spike. Forest Shipping, a China-based freight forwarder, supports cross-border sellers with end-to-end shipping plans (DDP/DDU, customs documentation readiness, Amazon FBA delivery windows), so you can focus on core tasks like this Amazon tax update and keep your store running without disruption.

To avoid account limits, every non-U.S. taxpayer selling on Amazon's U.S. site should complete and submit the correct W-8 form by December 31, 2025, using Pinyin for China-registered company names and the Non-U.S. taxpayer status. Start in Seller Central → Regulatory Compliance, verify your details, and keep confirmation records on file.