What am I responsible for as the Merchant of Record?

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.

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 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.

What is Printify’s role in tax collection?

Pop-Up Store sellers are now the Merchant of Record, which means:

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

We recommend factoring any expected sales tax into your retail prices.

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