What am I responsible for as the Merchant of Record?

Written by

Pascal Blake

With the latest changes to Pop-Up Stores, all sellers are now considered Merchants of Record. This gives you more independence when selling products to your customers, but includes some additional responsibilities.

In this article:

What is a Merchant of Record?
What is Printify’s role in tax collection?
What do I need to know about sales tax when selling online?
What do I need to know about VAT when selling online?

What is a Merchant of Record?

A Merchant of Record (MoR) is the individual or legal entity responsible for selling goods or services to the end customer.

As the Merchant of Record, you are the official seller of record for each order placed through your Pop-Up Store.

What does this mean for your customer relationships?

As the Merchant of Record, you are fully responsible for:

The sale of products to your customers
Ensuring compliance with all applicable laws and regulations
Adhering to intellectual property laws, including:
- Copyrights
- Trademarks
- Patents

You are also solely responsible for:

Collecting, reporting, and remitting all applicable taxes
This includes (but is not limited to):
- Sales tax
- Value-added tax (VAT)
- Any other taxes or duties as required by local jurisdictions

What is Printify’s role in tax collection?

As you are now the Merchant of Record, this means:

Printify does not collect or deduct taxes from your payouts.
Printify does not collect or remit taxes from your customer payments.
You are responsible for handling your own tax obligations.
If you have not submitted a valid resale certificate or other tax exemption documents, taxes may apply to your orders placed through Printify.

We recommend factoring any expected tax into your retail prices.

What do I need to know about sales tax when selling online?

Understanding your sales tax obligations is key to operating your business legally and efficiently.

What is sales tax?

Sales tax is a consumption tax applied to the sale of many goods and services purchased by the end customer. Unlike federal income tax, sales tax is managed at the state and local levels.

Sales tax is typically:

Calculated as a percentage of the purchase price
Added to the final retail cost

Am I required to collect sales tax?

You may need to collect sales tax depending on whether you have a sales tax nexus in the states where your products are delivered.

If you have nexus in a state:

You are required to register, collect, and remit sales tax for that state
This applies even if your business is located in another state

What is sales tax nexus?

Sales tax nexus is a legal term that refers to a connection between a seller and a state.

You may establish nexus through:

Physical presence (office, warehouse, employees, etc.)
Exceeding a certain sales or transaction threshold in a state

Once nexus is established, you are required to comply with the state’s sales tax laws.

Tip

You can learn more about sales tax by visiting the Sales tax section in our Help Center. However, we strongly recommend consulting a tax specialist or CPA for personalized advice on sales tax and applicable regulations.

What do I need to know about VAT when selling online?

Understanding your Value-Added Tax (VAT) obligations is key to operating your business legally and efficiently when selling to customers in Europe.

What is VAT?

Value-Added Tax, or VAT, is a consumption tax applied to almost all goods and services bought and sold for use in the European Union (EU), the United Kingdom, and Norway.

VAT is typically:

Calculated as a percentage of the total order cost (including shipping)
Applied to orders sold locally, cross-border within the EU, or imported from outside the EU
Ranging between 0% and 27% depending on the destination country and product type

Am I required to collect VAT?

You may be required to collect VAT depending on where your business is established, where your products are produced, and where your customers are located.

You may need to collect VAT if:

You are based in the EU and exceed your country's domestic sales threshold
Your total cross-border sales within the EU exceed the distance selling threshold (typically €10,000)
You are selling to customers in the UK or Norway (specific registration rules apply)

Do I need to register for VAT in every country?

No, you generally do not need to register in every individual country thanks to simplified reporting systems.

Key registration systems include:

One-Stop Shop (OSS): Allows EU-based and non-EU sellers to report and pay VAT for all EU member states through a single quarterly declaration.
Import One-Stop Shop (IOSS): A system for sellers to collect and remit VAT upfront for imported goods valued below €150, ensuring a smoother customs process for the customer.
Domestic Registration: You must still register in the country where your business is established or where you hold physical inventory.

Tip

You can learn more about VAT by visiting the Value-added tax (VAT) section in our Help Center. However, we strongly recommend consulting a tax specialist or qualified advisor for personalized guidance on VAT compliance and international regulations.

If you have any questions or need further assistance, please don’t hesitate to reach out to our Support Team.