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SPOD and sales tax: what’s the story?

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

According to US sales tax laws, Spreadshirt needs to charge sales tax in all states 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.

 

Why am I being charged sales tax?

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

We’re legally required to charge sales tax on orders for certain US states. In some states, the merchant can provide SPOD with a Resale Certificate that will enable SPOD to drop sales tax charges to the customer. 

How is sales tax calculated?

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

We apply your sales tax rate based on your zip code. The tax rate is different in each state, and within each state, it varies by county, city, and district.

Usually sales tax is based on product + shipping cost, but there are exemptions.

Find more information on this question here: https://www.avalara.com/us/en/blog/2018/11/how-to-handle-sales-tax-on-shipping-a-state-by-state-guide.html

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

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

Sales tax is not included within the product costs that are visible during the product creation process or on https://www.spod.com/products. Tax varies by state, city or even district and the sales tax is always added on top of the product costs. Sales tax can only be calculated after the order has been placed with SPOD and therefor it’s only visible on the invoice. For some states, the merchant can provide SPOD with a Resale Certificate that will enable SPOD to drop the sales tax charges to the customer.

In which states do sales tax charges apply?

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

  1. SPOD charges sales tax in 8 states. The tax rate is different in each state, and within each state, it varies by county, city, and district.
  2. List of states in which sales tax charges apply and are charged by SPOD:
    • New Jersey
    • Georgia
    • North Carolina
    • Michigan
    • Indiana
    • Illinois
    • Vermont
    • Maryland

 

Do any sales tax exemptions apply to me?

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

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: https://www.avalara.com/us/en/learn/whitepapers/sales-tax-clothing-industry.htm 

What is a resale certificate?

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

  1. A resale certificate allows retailers to buy products without paying sales tax if they plan to resell them.
  2. 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 http://www.streamlinedsalestax.org/index.php?page=sst-exemption-certificate
  3. 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. 

 

How do I submit a resale certificate to SPOD?

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

  1. 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.
  2. To submit the certificate to us, simply send it to us via email to shopify@spod.com
  3. 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. We will send you an email notification of whether or not your request has been approved.
  4. For the following states, you need to send your seller permit along with your request:
    1. Pennsylvania
    2. New Jersey
    3. Massachusetts
    4. Tennessee
    5. Wisconsin
    6. Indiana
    7. Alabama
    8. Utah
    9. Kentucky
    10. Oklahoma
    11. Rhode Island
    12. Kansas

Do international sellers need to charge sales tax?

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

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: https://www.avalara.com/us/en/learn/guides/frequently-asked-questions-for-getting-started-with-sales-tax-compliance.html

Should I, as the merchant, charge my customers for sales tax?

SPOD has not started charging Sales Tax yet. We will inform all merchants via newsletter and the App once we know the start date.

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: https://www.avalara.com/us/en/learn/guides/frequently-asked-questions-for-getting-started-with-sales-tax-compliance.html