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SALES TAX ADJUSTMENT FORM INSTRUCTIONS

General Instructions:
As an Independent Business Owner (IBO), you are responsible for the proper application of sales tax on all your sales. The procedures set forth below will assist you with the process of paying and collecting the correct amount of sales tax on your sales transactions. This Packet contains the following: General Instructions Instructions for Each Section of the Form Sales Tax Adjustment Form Sales Tax Adjustment Form Invoice Listing This form may be used for the following reasons: Sales made to a state/county/city different from your own. Sales made to tax-exempt customers. Personal consumption / demonstration use / sales to a customer at other than retail price. Washington Adjustments: If you are conducting business in the State of Washington, please use the Washington Sales Tax Adjustment Form. Please note the Purchases at Other Tax Rate column on the main page of the Sales Tax Adjustment Form should be used for purchases that are not taxed at the full tax rate. For example, in some states food is taxed at a lower rate. Please use this column to report Purchases at other than your full tax rate. The Purchases at Other Tax Rate column does not apply if your state does not have a different tax rate for certain items. If you are not sure whether your state has a reduced/other tax rate for certain items, please contact your state taxing authority. Please be aware that more than one section could apply to your transaction(s). 1. Invoice Listing Attach a list of invoice numbers and invoice dates that were used to prepare this form (see Invoice Listing). Do NOT send the original invoice(s) as these are part of your personal books and records. The Totals from the Invoice Listing should be transferred to the appropriate section(s) on the main page of the Adjustment Form. The totals summarize the detail provided on the Invoice Listing. The U.S. Invoice Sales Tax Detail Report by month can be obtained from www.amway.com. Historical data for 16 months is available. Effective 07/01/2011: Amway will refund sales tax to the IBO who has paid for the order. If you purchased product from your upline, please obtain the refund from that person. 2. Statute of Limitations Each taxing jurisdiction specifies, by law, the period for which a sales tax refund may be issued. A chart indicating the statute of limitations for each state can be found on the website. Path is Amway.com > Business Center > Tax Information Tools > Sales Tax forms (select from drop down list) > Statute of Limitations. The average processing time for a sales tax refund can be four to six weeks during tax season. The statute of limitations is not based on when the refund is mailed but when Amway issues the refund. 3. Filing Frequency Due to the statute of limitations, it is recommended that IBOs file the Sales Tax Adjustment Form at least once per year to avoid any reduction in the sales tax refund due to an expiration of the statutory period. A Sales Tax Adjustment Form may be filed more frequently.

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Instructions for each section of the form:

Header Information - All fields are required to be completed. Bottom of Page 1 - IBO Signature, IBO Number and date signed are required to process the Sales Tax Adjustment Form. Your signature is legally required.

Section 1 - Sales into another State - Please complete this section if you make a sale into another state. Do not include drop shipments.
It is required that you indicate in the detail of Section 1 on page 2 the amount(s) and local jurisdiction(s) for which the sales tax was collected. Sales tax charged on the ordering IBOs invoice reflects the amount of sales tax based on the first shipped to address. An IBO, who subsequently ships or delivers products to another state, must collect the applicable sales tax for the state of destination based on that states taxability of the products. If you are making a sale to a retail customer or to another IBO who resides in another state, but is picking up the products at your location, the sales tax collected is based on your location. If you sold product that is subject to a higher of lower sales tax rate: Send only the difference of the tax collected for the higher rate in the form of a check payable to the Amway Sales Tax Dept., along with the Adjustment Form. Note: if you have completed another section that would result in an overall net refund, then remittance of this difference by check is not necessary as the refund will be reduced by this amount. If you collect at a lower rate, Amway will refund the difference of the sales tax. NOTE: A sale into another state may impact county and city tax, as well.

Section 2 - Sales in the Same State, but at a Different Rate of Sales Tax at the county/city level. Please complete this section if you make sales into another county/city within your state. Do not include drop shipments.
Many states have state, county and city sales tax rates. It is required that you indicate in the detail of Section 2 on page 2 the amount(s) and local jurisdiction(s) for which the sales tax was collected. Sales tax charged on the ordering IBOs invoice reflects the amount of sales tax based on the first shipped to address. An IBO, who subsequently ships or delivers products to another city/county, must collect sales tax based on the rate and taxability of the product for that city/county. If you are making a sale to a retail customer or to another IBO who resides in another city/county, but is picking up the products at your location, the sales tax collected is based on your location. Even if the sales tax collected is at the same rate but a different taxing jurisdiction, you must report this information to the Amway Sales Tax Department to ensure tax is remitted to the proper tax authority. If you sold product that is subject to a higher or lower sales tax rate: Send only the difference of the tax collected for the higher rate in the form of a check payable to the Amway Sales Tax Dept., along with the Adjustment Form. Note: If you have completed another section that would result in an overall net refund, then remittance of this difference by check is not necessary as the refund will be reduced by this amount. If you collect at a lower rate, Amway will refund the difference of the sales tax.

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Section 3 - Sales to Tax-Exempt Customers

There are many types of exemptions from sales tax, including but not limited to: agricultural production, nonprofit organizations, governments, religious organizations, charitable organizations, and educational institutions. When making a tax-exempt sale, you must obtain a properly completed sales tax exemption certificate from your customer. This form must be fully completed to be valid (such as signature, IBO name/number, telephone number, etc.). If your customer does not have a certificate available, blank exemption certificates are available from the Amway website. Some states require that Amway accept only the state provided form. If you are not sure which form to complete, please contact your state taxing authority. This certificate must be submitted with your Adjustment Form to obtain a sales tax refund. NOTE: Proper procedure related to exempting an order is to obtain the exemption certificate prior to placing the order.

Section 4 - Products used for Personal or Demonstrational use or Sales to a Retail Customer at other than Suggested Retail Price.
Please complete this section if you have personally consumed the products or sold the products to a customer at other than suggested retail price. Before completing section 4, please consider the following: Section 1 should be used if the product was sold into another state. Section 2 should be used if the product was sold into another city/county. NOTE: When you purchased your product you paid IBO price for the product. However, sales tax was applied to the suggested retail price. If the products you purchased were used for personal or demonstrational purposes, you may claim a sales tax refund for the difference of tax between suggested retail price and IBO price. When making sales at a selling price different than suggested retail, you must charge sales tax based on the actual selling price and the taxability of the product. Do not include non-taxable items, shipping charges and/or sales to a downline IBO in your refund request. Effective 07/01/2011: Amway will refund sales tax to the IBO who has paid for the order. If you purchased product from your upline, please obtain the refund from that person.

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PLEASE COMPLETE ALL HIGHLIGHTED AREAS (REQUIRED FIELDS)

SALES TAX ADJUSTMENT FORM Amway Corp. Sales Tax Dept. Processing Center (44-2F) 7575 Fulton Street East Ada, MI 49355 Location where product was received: City County State Zip
Other than Full Tax Rate % Full Tax Rate % Please note the Purchases at a Tax Rate Other than the Full Rate column below should only be used for purchases that are not taxed at the full tax rate (i.e. a reduced tax rate for food).

Name Email Address City Phone (

County )

State

Zip

THIS FORM COVERS THE PERIOD FROM: (MM/DD/YY) ___________________________________ THRU (MM/DD/YY) ______________________________ 1. SALES TO OTHER STATES (Use Section 1 on page 2 to itemize)

Purchases at a Tax Rate Other than the Full Rate

$ $ $ $

Purchases at the Full Tax Rate

$ $ $ $

a. b. d.

Amway suggested retail price of taxable products you purchased. Amount of sales tax you originally paid. DIFFERENCE (b - c)

c. Total tax collected on sales to other States from Page 2, Section 1.

2. SALES TO ANOTHER COUNTY OR CITY WITHIN YOUR STATE (Use Section 2 on page 2 to itemize)

Purchases at a Tax Rate Other than the Full Rate

$ $ $ $

Purchases at the Full Tax Rate

$ $ $ $

a. b. c.

Amway suggested retail price of taxable products you purchased. Amount of sales tax you originally paid. Total tax collected on sales to another County or City within your state from Page 2, Section 1.

d. DIFFERENCE (b - c)

3. SALES TO TAX-EXEMPT CUSTOMERS (Use Section 3 on page 2 to itemize)

Address: Please check one: a. b. Signed exemption certificate attached. Certificate on file with Sales Tax Dept.

Total suggested retail price of taxable products. Amount of tax originally paid to be refunded.

$ $

4. PRODUCTS USED FOR PERSONAL OR DEMONSTRATION USE

or

SALES TO A RETAIL CUSTOMER AT OTHER THAN Purchases at a Tax Rate Other than the Full Rate
$ $ $ $ $

SUGGESTED RETAIL PRICE.

Purchases at the Full Tax Rate

$ $ $ $ $ $

a. Total suggested retail value of taxable products you purchased. b. c. d. Total amount of sales tax you originally paid. IBO price of taxable products used or selling price. Total sales tax on IBO price or tax collected on actual sale price.

e. DIFFERENCE (b - d)

TOTAL AMOUNT OF SALES TAX ADJUSTMENT (total lines 1d, 2d, 3b & 4e) If amount is positive, you will receive a refund. If amount is negative, please enclose a check payable to Amway.

I HERBY CERTIFY THAT THE INFORMATION PROVIDED IS TRUE AND CORRECT.

IBO Number

Date

Signature

This form will be returned to you if the invoice listing is not attached. Page 4 of 6

Please keep a copy of the completed form for your records before filing. 072312 E-7149

SECTION 1 - SALES TO OTHER STATES

Sold Inside City Limits Y or N

State/County/City/Zip Code

Your Selling Price of Taxble products

Total Tax Rate - %

Tax Collected on Sales

** _______________________
** This total is the tax collected in other states and should appear on line c of Section 1 on page 1.

SECTION 2 - SALES TO ANOTHER COUNTY OR CITY WITHIN YOUR STATE

Sold Inside City Limits Y or N

State/County/City/Zip Code

Your Selling Price of Taxble products

Total Tax Rate - %

Tax Collected on Sales

** _______________________
** This total is the tax collected in another county/city and should appear on line c of Section 2 on page 1.

SECTION 3 - SALES TO TAX-EXEMPT CUSTOMERS

Name/address Reason for Exemption (church, school, etc) Brief description of product(s) sold

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Sales Tax Adjustment Form Invoice Listing

Please use a separate Invoice Listing for each section of the Sales Tax Adjustment Form.
Please check only one. Section: 1 Section: 2 Section: 3 Section: 4

IBO Number:

IBO Name:

Effective 07/01/2011: Amway will refund sales tax to the IBO who has paid for the order. If you purchased product from your upline, please obtain the refund from your upline.

Adjustment Period From:

Adjustment Period To:

Invoice Number:

Order Date:

Retail price of taxable items eligible for refund:

IBO price of taxable items eligible for refund.

Totals:

$0.00

$0.00

Please transfer retail total and IBO total from above to the appropriate lines of the Sales Tax Adjustment Form. For example if you are only completing section 4 transfer your retail total to line a and transfer your IBO total to line c. You may duplicate this form. Please make a copy for your records.
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