In 2019, we reported the launch of Amazon FBA Donations, which allows sellers to donate excess inventory as an alternative to having Amazon destroy or dispose of it or having Amazon return it to them.
There are accounting and tax consequences when a merchant’s inventory changes status, and Amazon informed sellers on Thursday they will now have access a donation certificate each year. (The announcement comes a bit late for those sellers with a tax deadline of March 15 for filing corporate business taxes for tax-year 2022.)
As we reported in 2019, some sellers were unsure upon learning of the program who would be able to take the tax write-off for donations made through the new program. In Thursday’s announcement, Amazon said it was up to sellers to consult with their tax advisor:
“Did you donate products through the FBA Donations program in 2022? If so, you now have access to a donation certificate which reports the inventory you donated in the previous year. For information about the specific tax benefits to which you may be entitled, please consult your tax advisor.”
Amazon will generate donation certificates annually, which will be accessible on the Donations page in Seller Central. “The donation certificate contains the quantity and description of your inventory that was donated through the program in the previous year,” Amazon explained.
All sellers who participate in the FBA fulfillment program should check the page, since Amazon included this advisory in its announcement:
“Additionally, this program is referred to on the donations page as either “Donate/Recycle” or “Dispose.” If you thought you disposed of unwanted product in 2022, you may have actually donated.”
The company said that in 2022, sellers donated nearly 100 million products through the Amazon FBA Donations program.
