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SPOD and sales tax: what’s the story?

According to US sales tax laws, SPOD needs to charge sales tax in all states where SPOD is registered, on the goods delivered to the merchant’s customer in the merchant’s name. Sales tax varies by state, city or even district and the tax is always added on top of the product cost. Sales tax will only be visible on the invoice from SPOD to the merchant. The merchant needs to check whether they are able to charge their customers sales tax when they invoice. In some states, the merchant can provide SPOD with a sales tax exemption form so that SPOD need not charge the customer sales tax.


Where is the sales tax seen in the pricing in-app?

Sales tax is not included within the product costs that are visible during the product creation process or on As tax varies by state, city or even district the sales tax is always added on top of the product costs after an order is made.

Sales tax can only be calculated after the order has been placed with SPOD and therefore it’s only visible on the invoice. You can find this information on the order detail page. 

For some states, the merchant can provide SPOD with a Resale Certificate that will enable SPOD to drop the sales tax charge..

In which states do sales tax charges apply?

SPOD charges sales tax in states where it has registered. The tax rate is different in each state, and within each state, it varies by county, city, and district.

List of states in which sales tax charges apply and are charged by SPOD:

  • Maryland

SPOD will register for more states in the future when it is legally required to do so.

Please note the end-customer's delivery address, where we ship the product to, must be in the above states for us to charge sales tax. 

If the customer's address is not in the above states, we will not charge sales tax. 

Do any sales tax exemptions apply to me?

It depends. Since each state differs in their tax legislation, it depends on where you’re delivering to, but also what kind of goods you are selling. It can be that some products from the SPOD assortment, for some states, are tax-free... whereas other products in the same state are subject to tax. 

Our tax partner Avalara has compiled more information on tax exemptions here: 

What is a resale certificate?

A resale certificate allows retailers to buy products without paying sales tax if they plan to resell them.

  1. To apply for such a certificate, you need to have a sales tax permit and apply for the certificate for each state. There are services that led you apply for multiple states at once, such as
  2. If you have a resale certificate you can submit it to us, we validate it and will stop charging you (the merchant) sales tax for that state. 
  3. Please note you need to submit a resale certificate for each state that SPOD is registered for sales tax in. A resale certificate for a certain state exempts you only from paying sales tax in that state. 


How do I submit a resale certificate to SPOD?

If you, the merchant, have a resale certificate for states we’re charging sales tax for then you can submit this to SPOD. After we’ve approved it, we will be able to stop charging sales tax.

  1. To submit the certificate to us, simply upload the certificate in the app under the section Tax in your settings. 
  2. Please be advised that we check which product categories you have chosen to be exempt for. We’ll only be able to stop charging for those categories. We may be obligated to continue charging for other categories if you haven’t registered them. The merchant should be aware that the verification process currently takes 2 business days. You can check in the app for the status of your submission. 
  3. For the following states, you need to send your seller permit along with your request: 
    • Georgia
    • Hawaii
    • Illinois
    • Indiana
    • Kansas
    • Kentucky
    • Louisiana
    • Maine
    • Maryland
    • Michigan
    • Minnesota
    • Nebraska
    • Nevada
    • New Jersey
    • North Carolina
    • North Dakota
    • Ohio
    • Rhode Island
    • South Dakota
    • Utah
    • Vermont
    • Virginia
    • Washington D.C.
    • West Virginia
    • Wisconsin
    • Wyoming

Do international sellers need to charge sales tax?

Regardless of where you are located, we will charge sales tax if the customer's address on the packaging is located in a state where we are registered. 

The location of you as the merchant does not play a role in whether or not SPOD charges sales tax on the transaction. 

If you’re not located in the USA but are selling to customers in the USA, then you may or may not be liable to charge your customers sales tax. We’re no tax advisors, so our best advice is that you speak with a tax advisor about the particulars of your situation. You should check carefully whether you need to charge sales tax before making a decision.

For some more information on the topic, we can recommend the tax resources from our partner Avalara:

Is there a sales limit I have to pass to be charged sales tax?

As sales tax is charged on the transaction between SPOD and you as the merchant, there is no sales limit that needs to be passed before we charge sales tax. 

The only influence on whether or not sales tax will be charged, is the delivery address of the end-customer.