Does sales tax apply to me?
Navigating sales tax in the US can seem daunting, but we’re here to help simplify it. Whether you’re a domestic or international seller, understanding if and how sales tax applies to you is crucial. Here’s what you need to know about Printify’s role and your responsibilities:
Printify is obligated to collect and remit sales tax on US orders being shipped within the US. However, sales tax won’t be applied to the order if you have submitted a valid resale certificate to us.
We advise consulting with a tax professional or CPA to determine if you have sales tax nexus within a given state. Typically, you would qualify for sales nexus if you hold a physical presence or economic nexus within a given state or states.
What should be my next steps?
- Check if/where you have a sales tax nexus. Here is information for international sellers.
- If you do have nexus, we recommend consulting with a sales tax advisor or CPA, however, the steps will most likely include:
- Choosing and setting up a tool for tax calculation and collection.
- Applying for a sales tax permit for each state you have nexus in.
- Submitting a resale certificate for each state you charge sales tax in – to purchase products without paying sales tax if you plan to resell them. This means that Printify won’t charge sales tax in those states.
- If you collect taxes, you will also need to report and remit them, thus, use your chosen tool for tax reporting and follow their guidelines.
What if I don’t have nexus?
However, if you don’t have nexus and haven’t submitted a valid resale certificate, Printify will charge sales tax on orders shipped to states where Printify is registered – no action on your part is needed.
You may want to consider slightly raising your product retail prices in order to absorb the sales tax that will be charged on the Printify side.
Here you can see the 4 possible cases and the expected outcome: