Understanding sales tax with Printify

Understanding sales tax with Printify

While we are not tax consultants or CPAs, in this article, we try to help you understand sales tax for your business and your peace of mind.

They say the two things guaranteed in life are death and taxes. That is why every year, like clockwork, tax filing finds us and sends us all into a minor panic. But not this year. In October 2020, Printify will start applying sales tax to states we are registered to collect. It doesn’t mean you will no longer be required to collect taxes in the states you have sales tax nexus, but you won’t have to worry about sales tax compliance in other US-based destinations.

We have also outlined essential information about sales tax in this article. We partnered with the experts at TaxJar for more resources. You will no longer need to waste hours scouring the internet, trying to figure out sales tax. While we recommend a tax expert for specialized sales tax advice, we hope this article gets you one step closer to understand sales tax and closer to some well-deserved peace of mind.

In October 2020, Printify will start collecting sales tax on all taxable products in every state we are registered. Please register for resale or tax-exemption certificates in due time to be prepared.

Table of contents

  1. What is sales tax?
  2. How do you qualify for sales tax?
  3. Where is Printify registered to collect and remit sales tax?
  4. How will Printify charge sales tax, and how will it be calculated?
  5. How to register and collect sales tax?
  6. How to get a resale certificate after you have registered for collecting sales tax?
  7. How do I set up sales tax through my sales channel?
  8. How to file a return for sales tax?
  9. What should you do about the sales taxes? Also, TL;DR.
  10. Examples for tax calculation
  11. Where can I get sales tax advice?
Section 1

What is sales tax?

A tax is a percentage of the sales price of an item put in place by the government to be remitted whenever the item is sold. The tax collected is then used for public facilities and services such as schools, hospitals, public infrastructure, etc. Sales tax is a percentage collected on retail purchases by the seller and remitted to the state government. Unlike federal taxes, the sales tax is governed by each state, making their laws to collect it, which may differ from one state to another.

Sales tax is also known as the “pass-through tax” because even though a business charges sales tax, they don’t keep it. The business is required to collect it and remit it, “pass it through” to the relevant state government. Sales tax is a consumption tax, which means it is only charged when the end consumer buys goods or services.

It is important to remember that sales tax is not profitable, it is the law, and getting your business sales tax right is necessary. Sales tax is based on economic and physical nexus in certain states. Nexus rules apply both to Printify selling to merchants, as well as merchants making sales to the final consumers*.

Section 2

How do you qualify for sales tax?

a. Nexus 

What is a sales tax nexus? This is when you have a physical presence or a substantial connection to a state that requires you to comply with their tax laws. You need to collect sales tax from sales in a state where you have sales tax nexus.

How do you get nexus with a state?

You may acquire sales tax nexus if you qualify for any of these four factors:

  • Physical presence: Your location may create a sales tax nexus. This includes formal and informal retail premises such as a brick-and-mortar store, an office, a home office, a garage, or even your kitchen table if you conduct business from there.
  • Your business employees: You may create nexus if you have hired professionals, such as salespeople, or social media consultants for your business. This includes employees working remotely, who may be in different states, and create nexus there. In some states, affiliates (indirect services) may also give you sales tax nexus.
  • Your business warehouse/storage: Where you store your inventory may also give you nexus. This means if most of your inventory is stored by your print provider in a particular state, such as California, you may have nexus in the state. Note that print on demand dropshipping from a print provider’s fulfillment center does not give you nexus.
  • Economic nexus: If you make enough sales in dollars or transactions that meet the requirements of a particular state, you may have economic nexus in that state. The tricky part about economic nexus is that it is determined by individual states and may differ from one state to another. Economic nexus is the primary reason Printify is required to collect sales tax.

The South Dakota vs. Wayfair case of 2018

Regulations within a state’s Economic nexus changed drastically on June 21, 2018, following the South Dakota vs. Wayfair case. The United States Supreme Court overturned a previous court decision and law known as Quill, which established that the state government could only tax businesses with a “physical presence” in that state. Now states can tax remote sellers if they make enough sales in dollars or transactions that cross their economic thresholds. This was designed to level the playing field between brick and mortar (physical) businesses and eCommerce stores so that both have to pay taxes.

The Wayfair ruling of 2018 was groundbreaking for the print of demand and dropshipping industry. Since then, many online sellers have struggled to understand what states they are eligible for sales tax and where they are required to comply and remit, therefore, we suggest you read about dropshipping & sales tax in the post-Wayfair era.

b. Selling taxable items

Generally, sales tax is charged by most states within the US, in exception of very few, namely, Delaware, Montana, New Hampshire, and Oregon, though some local areas within these states may be able to charge a sales tax. While many states put a sales tax on clothing, some have legislated clothing as a basic need and it is either entirely non-taxable or only taxable when priced at above a certain threshold. Our collaborators TaxJar created a helpful article with a visual representation to check which states are tax-exempt or apply sales tax on clothing. Moreover, please note that sales tax can also apply to shipping rates depending on the specific state.

Section 3

Where is Printify registered to collect and remit sales tax?

Printify is required by law to collect sales tax in states where we have nexus, on sales (including costs associated with shipping) to our merchants. Below is a map showing all the states where Printify will be registered for sales tax purposes and therefore will collect and remit sales tax. Find additional information on state and local sales taxes.

Starting October 2020, Printify will collect sales tax in the following states: California, Colorado, Georgia, Illinois, Indiana, Maryland, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Texas, Virginia, and Washington.
Section 4

How will Printify charge sales tax, and how will it be calculated?

1. Based on your customer’s destination (ZIP code) – Printify will use your customer’s shipping address to calculate sales taxes.
Please note that Printify will collect sales taxes for the specific states that we are registered for in the USA, including orders for international sellers where the destination is within the USA.

2. Based on orders coming in from specific sales channels or API – Printify will calculate and collect sales taxes based on resale certificates provided by the merchant.

3. For all sample orders – the sales tax will be displayed at checkout and collected by Printify. The tax will also be based on the resale certificates you, as the seller, have provided.

Section 5

How to register and collect sales tax?

Register for collecting sales tax (sales permits): You cannot collect sales tax without a sales tax permit. Once you’ve determined that you have nexus with a state, the next step should be to register for a sales tax permit with the state to start collecting sales tax. Here’s a sales and transactions checker to find out where you have nexus.

US-based merchants

Sellers within the US should consider both their physical and economic nexus and register for sales tax permits where applicable.

International merchants

It is important to note that international sellers may also have sales tax nexus and may be required to register for sales tax permits. If you are outside the US but are selling within the US, you may have nexus and should check as well.
You may benefit from getting a tax expert to help you handle your sales tax requirements*. 

Section 6

How to get a resale certificate after you have registered for collecting sales tax?

a. Apply for a resale certificate

As a Printify seller, we recommend that you request a resale certificate from state authorities. A resale certificate (also known as a sales tax exemption certificate) is different from a sales tax permit as it allows you to buy products without paying sales tax on our end if you plan to resell them and collect the sales tax through your business. This means that Printify will not collect sales tax from you.

b. Submit your resale certificates to Printify

1. State-specific resale certificate: Before we start collecting sales tax in October 2020, you will be able to submit a resale certificate to Printify for each state that you collect sales tax so that we do not receive it from you. Your resale certificate will go under review, and, if approved, you will not be charged sales tax on orders shipping to the state that issued the resale certificate. If denied, we’ll let you know why, so you can fix and resubmit it.

2. Uniform sales tax exemption certificate (MTC – Multistate Tax Commission): The MTC is a commission that has developed a uniform resale certificate that is acceptable for use as a “blanket” resale certificate in 38 states in the USA for sales tax purposes. This means that by using the MTC, you can claim a resale exemption for multiple states. The certificate itself contains instructions on its use. It includes a list of all the states that have indicated to the Commission that an adequately filled form satisfies their requirements for a valid resale certificate. Find out how to apply for the MTC certificate and any specific limitations on its use.

Please submit your resale certificates in your account settings under Indirect Taxes, and our team will review them.

Section 7

How do I set up sales tax through my sales channel?

Some states in the US have made laws that require online marketplaces to collect and remit sales taxes on behalf of their third-party seller transactions. This means any sales you make via these marketplaces will be taxed for you automatically. Unless you have nexus in these states, you will not be required to do any additional remitting.

However, if you have nexus in these states, you will be required to file a “Zero tax return” or register for a non-reporting sales tax status. Additionally, it is advisable to keep a sales tax permit in states where you have nexus as the marketplaces only remit the taxes for sales made through the marketplace. We advise that you reach out to sales channel representatives or tax consultants for the appropriate information and setup.

Sales channels and their sales tax setup:

Printify for Shopify
Shopify

Learn more

Printify for Etsy
Etsy

Learn more

Wix

Learn more

Printify for eBay
eBay

Learn more

BigCommerce

Learn more

WooCommerce

Learn more

PrestaShop
PrestaShop

Learn more

Printify API
Printify API

More information will follow

Etsy as a sales tax facilitator

Etsy is registered as a marketplace facilitator in the majority of states and is required to collect and remit sales taxes on behalf of their merchants. 

To grant sales tax exemptions for Printify merchants using Etsy and avoid double-taxing, we will need to receive a confirmation from you regarding the sales tax collection performed by Etsy on your behalf. In late September, we will ask you to fill in the necessary legal information (such as the legal business name and address) and electronically sign the document.

This evidence will indicate that you only make purchases from Printify for resale and that Etsy is collecting your required sales tax. Upon the receipt of the appropriate confirmation from you, we will exempt sales carried out through our direct integration with Etsy.

So, if you are selling on Etsy, you will not be charged the sales tax on Printify, given that you fill in all the necessary information on your account (more information will follow).

Note: Currently, however, this solution does not apply to eBay even though technically it is also a marketplace, similarly as Etsy.

Section 8

How to file a return for sales tax?

If you are registered for sales tax purposes and collect sales tax, you are required to file a return that indicates how much sales tax you have collected and remitted. Follow the guidelines on the TaxJar map to file a return for each state. TaxJar connects all marketplaces you sell and then creates return-ready tax reports in the manner in which a state wants to receive it. If you are tax registered, you are required to file a sales tax return whenever you have a filing due, even if you did not collect any sales tax to avoid penalties.

Section 9

So, what should you do about the sales taxes? Also, TL;DR.

Now, when you hopefully understand the theoretical part about sales tax a bit better, what does it all mean in practice, and what should be your next steps?

  1. Check if/where you have a sales tax nexus.
  2. If you have nexus, we recommend consulting a sales tax advisor but 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.
  3. If you don’t have nexus and haven’t uploaded a valid resale certificate, Printify will charge sales tax on your item and shipping cost for orders shipped to states where Printify is registered. No other actions needed.
Note: In case you use Etsy as your sales channel, please refer to the specific information mentioned above.
Section 10

Examples for tax calculation

To make sales tax easier to digest, we have prepared a few examples of tax calculations depending on the product category, sales channel, merchant documentation, and order destination. 

Sales channel Uploaded documents Product category Item cost Number of items Shipping cost Destination address Sales tax Total merchant charge
Shopify Resale certificate Clothing $20 1 $10 1201 S Joyce Street, Arlington, VA 22202 $0 $30
Shopify ❌No resale certificate Clothing $20 1 $10 1201 S Joyce Street, Arlington, VA 22202
$1.20 $31.20
Etsy ❌No resale certificate
Etsy sales confirmation
Clothing $20 1 $10 1201 S Joyce Street, Arlington, VA 22202
$0 $30
Shopify ❌No resale certificate Clothing $20 1 $10 636 Greenwich Street, New York, NY 10014 $0 $30
Shopify ❌No resale certificate Home decor $20 1 $10 636 Greenwich Street, New York, NY 10014 $2.66 $32.66

Examples are calculated in accordance with sales tax rates and regulations on August 18, 2020.

For easy comparison, we picked examples of orders with a single item going for the same cost at $20 and shipping cost at $10.

All sales tax calculations are performed by licensed tax automation software that considers all relevant information and state-specific rates and exemptions. Please, note that for orders going to California, the sales tax is calculated based on the final retail price, not item cost.

Section 11

Where can I get sales tax advice?

We at Printify are not tax experts or specialists and cannot give you any tax or legal advice. We strongly recommend you consult a tax specialist or CPA to get information on sales tax and regulations. That is why we have partnered with the specialists at TaxJar:

TaxJar is a leading technology for eCommerce businesses to manage sales tax. TaxJar features tools that make eCommerce easier for everyone by helping merchants spend time on their business and not sales tax.

  • All of your sales tax data in one place: TaxJar instantly prepares your state return-ready reports from all of the places you sell, with one-click integrations with the top platforms, services, and marketplaces. See it all in one place.
  • Seamless and automatic filing: With AutoFile, your tax forms will be automatically submitted when they are due. Never miss a deadline again.
  • Real-time sales tax rates and calculations: Upgrade to TaxJar Professional, and the TaxJar API will instantly provide accurate sales tax rates at checkout.

If you would like to learn more in-depth information on sales tax, here’s an Online Seller’s Guide to eCommerce Sales Tax.

*Disclaimer: We strongly recommend you consult a tax specialist or CPA to get advice on sales tax and regulations.  

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73 comments

  1. Emmanuelle Jacobs
    September 26

    Hi there,

    I’m an international seller who has no physical presence in the U.S., but who makes sales into the U.S.

    I don’t think I have an economic nexus in any state because I don’t sell that much.

    Can I qualify for a resale certificate? Is there a state that gives resale certificate to international seller who has no nexus?

    1. Sabrina Barnes
      September 27

      Hi Emmanuelle!

      Thank you for your question!
      Printify will collect and remit sales tax on orders being shipped to the states where Printify is registered (eventually, all states where sales tax is being charged) and required to do so by law, unless a valid resale certificate is provided.
      If you don’t think you have nexus in any state, then only these cases would apply to your Printify orders.

      A resale certificate is a document that proves that the goods you’re buying are intended for resale, so that you are not being double-taxed on the same goods. A resale certificate can only be acquired/created if you already hold a seller’s permit (also known as sales tax license) and are already collecting and remitting sales tax within your store. It won’t be possible to acquire or create a resale certificate if your business is not registered in at least one US state.
      Furthermore, it is illegal to collect sales tax within your store if you have not officially registered to do so. Instead, we recommend raising the retail prices slightly in order to absorb the sales tax that way. Alternatively, you might consider raising the US shipping prices, if you have many international customers and you would like to charge more only from the US customers, where the sales tax is actually being applied on the Printify end.

      If you are confident that you have no nexus, then no further action is needed. However, we certainly recommend you consider looking into this matter with the help of a tax professional sometime in the future, as your business grows and there are more sales.

      I hope that helps!
      Best regards,
      Sabrina

  2. Daniel
    September 24

    As a EU customer with no US nexus i am trying to find some information in which states Printify has nexus? so i know where i will earn less money

    1. Sabrina Barnes
      September 25

      Hi Daniel!

      Thank you for your question – our apologies for the delayed response!
      Printify is currently registered in these states. This means that sales tax will be applied on orders being shipped to these states only.
      However, in future the plan is to be registered in all states. Sales tax won’t be charged if you have submitted a resale certificate for the state to which the order is being shipped to.

      I hope that answers your question!
      Best regards,
      Sabrina

  3. Angel
    September 24

    Hi,
    “The email for Etsy users will be sent in the upcoming days ” -Was this email sent already?
    I am from Spain, selling on Etsy and have no idea how to do all this tax exemption as Etsy already collect taxes from my customers. Is it possible upon adding Etsy shop to Printify account, you automatically to do this tax exemption for orders which comes from same registered shop?
    Do you have guide for Etsy shop owners located outside US ?

    Thanks,
    Angel

    1. Sabrina Barnes
      September 25

      Hi Angel!

      Thank you for your question – our apologies for the delayed response!
      On Monday, Etsy merchant’s will receive an email which will describe the necessary steps for becoming tax-exempt on your Etsy orders.
      As per the previously provided information – we will ask you to fill in the necessary legal information (such as the legal business name and address) and electronically sign the document which will grant you tax-exemption.

      Our team will certainly look into making the process as easy as possible moving forward, however, I believe it is not possible to make it fully automated at this time, as it requires some additional details from the seller.

      I hope that helps – let me know in you have any additional questions.
      Best regards,
      Sabrina

  4. James
    September 22

    I sell through my website on Shopify, and have nexus in Texas. Currently, I only collect taxes in Texas. So when you guys start collecting taxes in these other states I do not have nexus in, that means I cannot charge the tax that you guys will be charging me to fulfill the order, correct? Not really sure how to even account for this. At least on marketplace sites like eBay and Amazon, the sales tax is charged directly to the customer after the fact. In the case with Printifys setup with my Shopify site, there is no way to charge the customer directly for the sales tax, since I cannot charge sales tax in states I do not have nexus in or hold a resale certificate.

    1. Sabrina Barnes
      September 25

      Hi James!

      Thank you for your question – our apologies for the delayed response!

      Many states allow out-of-state resale certificates, if you have not reached economic nexus (or any other type of nexus) in that state. With this system, you would only collect and remit sales tax in your home state, because you hold a seller’s permit there.
      However, we recommend that you pay close attention to nexus threshold in the other states where they have submitted an out-of-state resale certificate (this nexus can be determined by either revenue in that state or total orders, or in some cases both). This is due to the fact that as soon as you reach economic nexus in one of these states, you may have to register for a seller’s permit and collect and remit sales tax to that state. But until you reach nexus, you don’t have to do that.

      As always we highly recommend that you consult a tax professional when it comes to these matters, as each case is individual.

      I hope that answers your question!
      Best regards,
      Sabrina

  5. William
    September 22

    Hi there,

    A couple of questions:

    1. If we have discount codes that are applied on our website will Printify be charging tax on the full amount charged to the end customer, the discounted amount to the end customer, or the costs to us as the merchant?

    I don’t believe Wix for example sends the actual paid amount to printify so calculating the actual amount charged (which I assume would be the correct way to do it) is not possible.

    2. Does sales tax apply to sample orders as well?

    1. Sabrina Barnes
      September 22

      Hi William!

      Thank you for your questions – I’ll do my best to answer them.

      1. Sales tax is calculated from the Printify production price (production price + 10% for California orders). This means that the sales tax amount is not affected by the retail price that you charge in your store.

      2. Sales tax will be applied on sample orders. That’s because sales tax exemption only counts for reselling the goods. If you end up consuming the goods yourself then you would have to pay the state use tax as appropriate.

      I hope you find this information helpful!
      Best regards,
      Sabrina

  6. Melanie Logan
    September 21

    Is clothing the only products that will be taxable?

    1. Sabrina Barnes
      September 21

      Hi Melanie!

      Thank you for your question.
      As per this article, all Printify products are taxable goods.

      Clothing is the only product category that is not being taxed in select states (or being taxed only when priced at above a certain threshold). All tax rules and regulations for each state have already been included in the tax algorithm – if the order will be shipped to a state that doesn’t consider clothing as taxable, then sales tax won’t be applied.

      I hope this answers your question!
      Best regards,
      Sabrina

  7. Arti
    September 21

    Guys please make a simple sales confirmation form on Etsy. Try to keep it simple Printify as before.

    1. Sabrina Barnes
      September 21

      Hi Arti!

      Thank you for the comment!
      Our team has worked very hard to come up with the solution for Etsy users. Rest assured – the process on your part will be kept as user-friendly as possible! Further information will follow via email.

      Best regards,
      Sabrina

  8. Arti
    September 21

    When will we receive an email with a link to the confirmation form so that we can confirm that we are selling through Etsy and therefore our orders on Etsy will not be double taxed? Thank you in advance!

    1. Sabrina Barnes
      September 21

      Hi Arti!

      Thank you for your inquiry.
      The email for Etsy users will be sent in the upcoming days – please kindly keep an eye on your inbox. The email will provide a thorough explanation of the further steps required on your part.

      Let me know if I can be of further help!
      Best regards,
      Sabrina

  9. Krystle
    September 21

    I am in Oregon, selling through Etsy. I have no idea when or what states my sales will come from…. What am I supposed to do?
    Thanks

    1. Sabrina Barnes
      September 21

      Hi Krystle!

      Thank you for your question!
      In the upcoming days, those Printify merchants that use Etsy as their sales channel will receive a special email, which will outline the steps that need to be taken on your part to become tax-exempt. Please keep an eye out for that email! 🙂

      Let me know if you have further questions!
      Best regards,
      Sabrina

  10. Art
    September 21

    We are self-employed sellers we are already deducted all taxes and VAT on Etsy and we do not need to register a business. I know that for example I don’t need to contact TaxJar for this. What should we do?

    1. Sabrina Barnes
      September 21

      Hi Art!

      Thank you for your question.
      If you have not registered as a retailer in any state then you may be applicable for an Etsy confirmation exemption (it means that Printify won’t apply sales tax on your Etsy orders). Further instructions regarding this document will follow within the upcoming days – stay tuned!

      I hope you find this information helpful!
      Best regards,
      Sabrina

  11. Macheta
    September 21

    If I’m already charging sales tax through my website Big Commerce and Avalara, how do I opt out of being charged by Printify or do I need to do something different?

    1. Sabrina Barnes
      September 21

      Hi Macheta!

      Thank you for your question!
      At this time, there is no separate solution for BigCommerce users that are already charging tax on their sales platform. In order to become tax-exempt, the only option will be to submit a valid resale certificate for each state in which you want to become tax-exempt.

      I hope that answers your question!
      Best regards,
      Sabrina

  12. Art
    September 21

    You guys haven’t explained to the international sellers what to do. Etsy already collects VAT and sales tax from some international sellers. What are these sellers to do? You recommend TaxJar, which has a paid subscription, to find out about taxes. But there are international sellers who do not need their services because Etsy collects all the necessary sales tax and VAT and transfers them on behalf of the seller to the seller’s country of residence and this happens automatically.

    1. Sabrina Barnes
      September 21

      Hi Art!

      Thank you for your question!
      For our Etsy users, there will be a separate notification email in the upcoming days, which will explain the next steps that are required on your part to become tax-exempt.
      The plan is the following: upon completing the required steps, your Etsy orders that import into Printify will not have a sales tax applied to them, because Etsy already automatically collects and remits sales tax. This will help avoid double-taxing of the same order.

      The process I just described relates to how Printify will charge (or not charge, in this case) sales tax. Unfortunately, I can’t provide any further advice on whether there are any additional taxes you should be collecting within your store, when it comes to being an international seller and possibly having sales tax nexus (the so-called economic nexus – since you do not have a physical presence in the US).

      There are no restrictions that would prevent you from selling, but as your business grows you certainly will want to look into this matter with the help of a qualified tax professional.

      I hope this information is useful!
      Best regards,
      Sabrina

  13. Liz
    September 18

    When I apply for the sales tax permit, under “entity type”, what should I put? Sole proprietor? Thanks so much in advance.

    1. Sabrina Barnes
      September 21

      Hi Liz!

      Thank you for your question!
      For advice on how to apply for state licenses and permits, we recommend that you contact the appropriate state department agency, as they will be best equipped to assist you with this process.

      Our apologies for not being able to help you more with this – let me know if you have any other questions!
      Best regards,
      Sabrina

  14. Stefan
    September 16

    Hi, I haven’t started/opened my shop. So i am new to this and does not follow completely. US was one of the target markets. Can i in any way Let Printify handle the whole tax thing regardless of what state it is in US? Or is it actually easier to just Skip US as market?

    1. Sabrina Barnes
      September 17

      Hi Stefan!

      Thank you for your question – our apologies for the delayed response.

      The US is a very large market so you definitely want to consider selling to US-based customers.
      Sales tax may also apply to international sellers, once they reach a certain sales threshold – unfortunately, we can’t advise you on whether this applies in your particular case, this should be discussed with a tax advisor.

      When it comes to sales tax – Printify will charge the sales tax based on this diagram.

      As per this diagram, Printify will apply sales tax on orders being shipped to states where it is registered. It is your responsibility to have checked if you have a sales tax nexus in these states as well (the so-called economic nexus – since you do not have a physical presence in the US).

      There are no restrictions that would prevent you from selling, but as your business grows you certainly will want to look into this matter with the help of a qualified tax professional.

      I hope you find this helpful!
      Best regards,
      Sabrina

  15. Julian Hebbrecht
    September 12

    What the hell is a Nexus?

    1. Sabrina Barnes
      September 13

      Hi Julian!

      Thank you for your question.
      Nexus in the context of sales tax means that you have a binding relationship to a particular state.

      Nexus can typically be acquired if:
      – You have a physical presence in a particular state
      – You have a certain amount of sales taking place in a particular state (your online store customers reside in this state)

      Please kindly review information in Section 2, which mentions the criteria for having nexus.

      I hope that helps!
      Best regards,
      Sabrina

  16. Ielyzaveta
    September 8

    Hello! It says “Printify will start collecting sales tax on all TAXABLE products in every state we are registered” – if I am located in NY state, and clothing is not taxable in NY, would I still need to get a resale certificate and pay taxes?

    1. Sabrina Barnes
      September 11

      Hi Ielyzaveta!

      Thank you for your question.
      Sales tax is calculated based on the “ship to” address – our system will automatically account for all products that are exempt in the given state. If you want to order clothing products shipped to a NY address, sales tax will not be applied. However, if shipped to another state where clothing is taxable, then sales tax will be automatically applied, unless a resale certificate for that state has been submitted to Printify.

      I hope this provides some clarification – let me know if you have further questions.
      Best regards,
      Sabrina

  17. Kelly
    September 7

    Hi, I am selling on eBay and eBay is already collecting sales tax. Am I paying double taxes? Why can’t sales tax be exempted like for Etsy sellers?

    1. Sabrina Barnes
      September 11

      Hi Kelly!

      Thank you for your question.
      That is correct – eBay already charges sales tax on orders going to select states. At this time, we recommend submitting a resale certificate to Printify in order to avoid double-taxing.
      We hope to be able to improve this process moving forward though.

      I hope this answers your question, let me know if I can be of further help.
      Best regards,
      Sabrina

  18. Alex
    September 5

    For the Resale Certificate in the “Seller” section can we list Printify or do we need a certificate for each of your sellers in order to get an exception?

    1. Sabrina Barnes
      September 11

      Hi Alex!

      Thank you for your question.

      Printify should be listed as the seller.
      Seller: Printify, Inc.
      Seller address: 108 West 13th Street,
      Wilmington, Delaware 19801

      I hope that helps!
      Best regards,
      Sabrina

  19. Jason
    September 4

    So, I understand sales tax and account for it each month. Unfortunately, I find this post adds more questions than it answers. I use Shopify and they identify the amount of sales tax on each order. I reconcile that amount with my accounting records so I know how much I owe my state of nexus each quarter. Is Printify charging an additional tax I need to remit on the production and shipping?

    1. Sabrina Barnes
      September 11

      Hi Jason!

      Thank you for your question.
      Indeed, the tax you charge within your Shopify store is separate from the tax that will be charged in Printify. Please have a look at this diagram we have prepared.

      We recommend that you submit a valid resale certificate to us in order to become tax-exempt in Printify. A resale certificate confirms that the sales tax is already being charged elsewhere and allows to avoid double-taxing.

      I hope this provides some clarification, let me know if you have additional questions.
      Best regards,
      Sabrina

  20. Ingrid
    September 2

    Hi! I have some questions. I am located in Orlando florida, using Shopify just DROPSHIPPING services. I am selling in USA, Canada and Europe. I understand that we don’t apply for NEXUS becuase we are in Florida. I am a solepropietor no LLC yet and I started my dropshipping services less than one month! Do I need to apply for resale certificate? Please let me know!

    1. Sabrina Barnes
      September 11

      Hi Ingrid!

      Thank you for your question.
      When it comes to having nexus, it is not only about your physical presence, as you may also hold economic nexus in a particular state or states. We recommend consulting a tax professional who will be best equipped to advise on your particular situation.

      Sales tax will be automatically applied to your Printify orders where it is applicable (based on the “ship to” address), unless you’ve submitted a valid resale certificate.

      Let me know if you have any further questions, I’ll do my best to answer them.
      Best regards,
      Sabrina

  21. Kacey B
    August 31

    According to this article, I am an Etsy “reseller.” I see that a form will need to be completed in September. Will this automatically be emailed to Etsy integrated businesses? Or will we have to go somewhere to get the form. Double taxation is not cool. Thanks!

    1. Kristiana
      September 8

      Hi Kacey,
      Thanks for reaching out. In the upcoming weeks, merchants will receive an email with a link to the form to confirm that they’re selling through Etsy, and thus their Etsy orders will not be double-taxed.
      Let us know if you have any other questions or comments in the meantime.
      All the best,
      Kristiana from Printify

  22. Nadine
    August 26

    Hi!
    I am a Swiss company that will be selling items through Printify mainly to clients in the U.S.
    Does that mean that the collecting of taxes by Printify will be taking care of all I have to do regarding taxes in the U.S? I will let you collect the taxes and that is about it? As it actually happens if I’m not mistaking with the VAT for clients in Europe?

    Thank you for confirming if I got this right and if not, could you explain to me what very practically I need to do regarding taxes for US clients, knowing that I am a Swiss company?

    Thanks a lot,

    Nadine

    1. Kristiana
      August 28

      Hi Nadine,

      Thanks for the comment.
      As an international seller, first thing you still have to do is to check if (and in which states) you have sales tax nexus.

      A: In case you exceed the threshold for economic nexus within one or several states, we recommend consulting a sales tax advisor, but the steps will most likely include:
      (1) Choosing and setting up a tool for tax calculation and collection;
      (2) Applying for a sales tax permit for each state you have nexus in;
      (3) 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;
      (4) 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.

      B: Alternatively, if you don’t have nexus and haven’t uploaded a valid resale certificate, Printify will charge sales tax on your item and shipping cost for orders shipped to states where Printify is registered. Therefore, no other actions needed from your side.

      In case you sell through Etsy, you will be able to fill in your store information and upload a confirmation that Etsy collects and remits sales tax on your behalf. The form will become available in late September. Upon the receipt of the appropriate confirmation from you, we will exempt the orders carried out through our direct integration with Etsy. More information on this will follow.

      Hope this answers your question. Please let us know if you have any other questions in the meantime.

      All the best,
      Kristiana from Printify

  23. Andreja
    August 25

    But how to get confirmation from ETSY that they are collecting taxes for sold products?

    1. Kristiana
      August 26

      Hi Andreja,

      Thanks for reaching out.
      If you are selling on Etsy, you will be able to fill in your store information and upload a confirmation that Etsy collects and remits sales tax on your behalf. The form will become available in late September. Upon the receipt of the appropriate confirmation from you, we will exempt the orders carried out through our direct integration with Etsy. More information on this will follow.

      Let us know if you have any other questions in the meantime.

      All the best,
      Kristiana from Printify

  24. Zoltan
    August 25

    Hi! I live in Hungary, I have a United Kingdom company and I registered on the etsy like Unietd Kingdom company. so I have an etsy shop. just a question. the printify will collect to me the saley tax or not? I need send a documents or any evidence to printify from myí etsy acocutn or it will works automaticly and the printiy will not collect to me sales tax? Thank you!

    1. Kristiana
      August 26

      Hi Zoltan,

      Thanks for the comment.
      The sales tax will be applied for all orders going to the USA in the states where Printify is registered to collect it. See the states above in Section 3.

      And, if you are selling on Etsy, you will be able to fill in your store information and upload a confirmation that Etsy collects and remits sales tax on your behalf. The form will become available in late September. Upon the receipt of the appropriate confirmation from you, we will exempt the orders carried out through our direct integration with Etsy. More information on this will follow.

      Hope this answers your question. Let us know if you have any other comments in the meantime.

      All the best,
      Kristiana from Printify

  25. Jecelia Grant S.F.E.S.R.R.LLC
    August 21

    I never made a comment on this post. I just got the email today. I don’t know if you trying to cause frighten. To say my business is not making money and compare to Amazon is completely different. NASA should thank me for 6 ft apps and also making it fashionable. It’s comic when people like to copyright name. Yes I’m the president of my business.

  26. Crypty
    August 20

    I think there may be something wrong with the “Examples for tax calculation” chart in section 10. I understood the chart perfectly until the fourth row came up, which is almost the same input as the second row, but the fourth row example doesn’t charge sales tax and it shows the second row does. This doesn’t add up to me and I am wondering if there was a typo with one of the boxes in the fourth row such as sales channel, uploaded documents, or product category.

    Just a heads up.

    1. Kristiana
      August 21

      Hi there,

      Thanks for the comment, I’m glad that you’re going through the details too!
      Indeed, sales tax can be a super confusing topic – in this case, the difference in the table arises from sales tax amounts in different states. The rows 1-3 show example calculations for Virginia (VA), while rows 4-5 represent the differences in sales tax for orders going to New York (NY), depending on product category (clothing vs. home decor).
      I hope this answers the confusion. Let us know If there are any other questions in the meantime.

      Best,
      Kristiana from Printify

  27. Jess
    August 20

    Hi there – thank you for putting together this very informative article! It helped a lot with my understanding. I am in the category of having no nexus (at this stage), so Printify will be collecting the tax. I just want to make sure I am understanding the example in section 10 for Shopify with no resale certificate.
    The last column indicated that the charge will come to the merchant (ie me)?
    I am obviously asking since this has implications to my margins.

    If I’m understanding correctly, neither I or Printify can add the tax to the point of sale (because I am selling to the customer and you are selling to me)?

    Thanks for any help you can give in adding a bit more clarity!

    1. Kristiana
      August 21

      Hi Jess,

      Thanks for reaching out. Yes, that is correct, in this case Printify will collect and remit the sales tax from you. In order to be exempt from that, you would have to provide us with a valid resale certificate for applicable states as proof and we will no longer collect and remit sales tax from you in the states you have provided the resale certificates for. Alternatively, you may want to look into the Multistate Tax Commission (MTC) form.
      To keep your profit margins stable, we would suggest adjusting your retail prices on Shopify.

      Hope this helps. Let us know if you have any other questions in the meantime.

      All the best,
      Kristiana from Printify

  28. M
    August 19

    What will this mean for any manual Etsy orders that need pushing through? Have had a lot of issues with integration recently.

    1. Kristiana
      August 21

      Hi there,

      Thanks for reaching out. For now, we will only be able to verify that Etsy is collecting and remitting sales tax for the orders directly from Etsy integration, given that you have uploaded the confirmation about selling on Etsy. More information regarding this will follow later in September.

      However, in case you are placing manual orders on Printify, you can avoid this issue by submitting a resale certificate, and we will not tax you for the states you have provided the resale certificates for. You can read more about this from our partners at TaxJar in these articles here, here, and here.

      Alternatively, you may want to look into the Multistate Tax Commission (MTC) form. Most states accept out-of-state Resale Certificates, therefore, if you have a valid resale certificate in one state, it’s likely that it may be used for other states. This is where the MTC form comes in and streamlines the process for you. Please note, however, there are 10 states that currently do not accept out-of-state Resale Certificates.
      We recommend you research this matter further, and, if needed, seek advice from a certified tax advisor or your state Department of Revenue and fill out the MTC form. Instructions and requirements for each state are included in the form.
      Once you have filled out the MTC form, you can send it over to us at [email protected], and our team will investigate it further and will let you know if there are any issues with it!

      Hope this helps. Let us know if you have any other questions in the meantime.

      All the best,
      Kristiana from Printify

  29. Dana Julian
    August 19

    Please let us know how you will be handling sellers linked to marketplaces who already charge the sales tax for items sold to states with this requirement. I do not want to be taxed twice and will reconsider doing business here if that becomes the case.

    1. Kristiana
      August 20

      Hi Dana,

      Thanks for your comment!
      Indeed, Etsy, amidst other platforms, collects tax as a marketplace facilitator. Printify merchants using Etsy will be able to upload a confirmation that sales tax collection is performed by Etsy on their behalf, thus, their Etsy orders will not be applied with tax. Please refer to Section 7 above in this post. More information regarding Etsy will follow later in September.
      Unfortunately, there is no way for us to verify at the moment that other marketplaces are collecting and remitting sales tax on your behalf, except for Etsy.

      However, if you do not have the aforementioned proof from Etsy, are selling through a different sales channel (including eBay and Amazon), or placing manual orders on Printify, then you can avoid this issue by submitting resale certificates to us, and we will not tax you for the states you have provided the resale certificates for. You can read more about this from our partners at TaxJar in these articles here, here, and here.

      I hope this answers your concern, and feel free to reach out to us in the meantime in case of any other questions.
      Thanks for being with us at Printify.

      All the best,
      Kristiana from Printify

  30. Art
    August 19

    Yes Etsy already charges the client the tax on the sellers behalf, so does Amazon, plus tax for sellers that are applicable for the country of residence. Thus, some sellers automatically pay 2 taxes. Paying the same tax twice is wrong, plus a third tax for the country of residence. So there should be some form, or way to opt out of the “sales tax” on Printify with a check box if one is only selling on these platforms. Guys, please take care of this. Stay the best.

    1. Kristiana
      August 20

      Hi there,

      Indeed, Etsy collects tax as a marketplace facilitator. Printify merchants using Etsy will be able to upload a confirmation that sales tax collection is performed by Etsy on their behalf, thus, their Etsy orders will not be applied with tax. Please refer to Section 7 above in this post. More information regarding Etsy will follow later in September.
      However, if you do not have the aforementioned proof from Etsy, are selling through a different sales channel (including eBay and Amazon at the moment), or placing manual orders on Printify, then you can avoid this issue by submitting resale certificates to us, and we will not tax you for the states you have provided the resale certificates for. You can read more about this from our partners at TaxJar in these articles here, here, and here.

      Thanks for being with us at Printify. Let us know if you have any questions in the meantime.

      All the best,
      Kristiana from Printify

  31. Sarah
    August 19

    We are a 501(c)3, will you tax us if we upload the proper documents. Any idea on when we’ll be able to upload them?

    1. Kristiana
      August 21

      Hi Sarah,

      Thanks for reaching out. You will need to provide us with a valid Resale Certificate or MTC, however, if you have a different form of documentation of sales tax exemption you can send it over to us at [email protected], and our team will investigate it further and get back to you if there are any issues.
      Hope this helps! Let us know if you have any other questions in the meantime.

      All the best,
      Kristiana from Printify

  32. Rob
    August 19

    Please take into consideration that items sold on platforms like Etsy, and Amazon already have sales tax added to them, so there should be some form, or way to opt out of the “sales tax” on Printify with an agreement of some type with a check box if one is only selling on these platforms. Might be a simple fix for some accounts.

    Etsy ALREADY charges the client the tax on the sellers behalf, so does Amazon – and some are using custom intigrations to sell on Amazon using Printify via some workarounds….

    So all that being said, try to keep it simple Printify.

    1. Kristiana
      August 20

      Hi Rob,

      Thanks for your comment!
      Indeed, Etsy collects tax as a marketplace facilitator. Printify merchants using Etsy will be able to upload a confirmation that sales tax collection is performed by Etsy on their behalf, thus, their Etsy orders will not be applied with tax. Please refer to Section 7 above in this post. More information regarding Etsy will follow later in September.
      However, if you do not have the aforementioned proof from Etsy, are selling through a different sales channel, or placing manual orders on Printify, then you can avoid this issue by submitting resale certificates to us, and we will not tax you for the states you have provided the resale certificates for. You can read more about this from our partners at TaxJar in these articles here, here, and here.

      Thanks for being with us at Printify.

      Best,
      Kristiana from Printify

  33. Flo
    August 19

    Resale certificat, what does it mean Specifically?

    1. Kristiana
      August 20

      Hi Flo,

      A resale certificate (also known as a sales tax exemption certificate) allows you to buy products without paying sales tax on our end if you plan to resell them and collect the sales tax through your business, meaning Printify will not collect sales tax from you. Please refer to Section 6 in this post. More information on this topic can also be found on TaxJar’s blog.
      Hope this helps.

      Best,
      Kristiana from Printify

  34. Jecelia Grant President S.F.E
    August 19

    Shopping been bad for small businesses. Amazon is taking out small businesses that online. I remember they hard struggle when Obama was in office. Nothing new. I’m here to stay…you don’t ran me away. Space From Earth Saturn Red Ring, LLC

  35. Jecelia Grant President
    August 19

    Shopping been bad for small businesses. Amazon is taking out small businesses that online. I remember they hard struggle when Obama was in office. Nothing new. I’m here to stay…you don’t ran me away. Space From Earth Saturn Red Ring, LLC

  36. Space From Earth Saturn Red Ring, LLC
    August 19

    Shopping been bad for small businesses. Amazon is taking out small businesses that online. I remember they hard struggle when Obama was in office. Nothing new. I’m here to stay…you don’t ran me away.

    1. Kristiana
      August 20

      Hi there,

      Thanks for sticking with us at Printify on your POD journey!

      Best,
      Kristiana from Printify

  37. Brian Cummings
    August 18

    Along with Etsy, we also have sales made through Amazon – which also is a marketplace facilitator for sales taxes. Will you be handling these sales through Amazon in the same manner as Etsy?

    1. Kristiana
      August 20

      Hi Brian,

      Thanks for reaching out.
      Unfortunately, there is no way for us to verify right now that the marketplace is collecting and remitting sales tax on your behalf, except for Etsy, given that you provide us with an electronically signed proof of them collecting and remitting sales tax on your behalf. More information regarding Etsy will follow later in September.
      However, when selling through a different sales channel, i.e. Amazon, or placing manual orders on Printify, then you can avoid this issue by submitting resale certificates to us, and we will not tax you for the states you have provided the resale certificates for. You can read more about this from our partners at TaxJar in these articles here, here, and here.

      Best,
      Kristiana from Printify

  38. Jecelia Grant
    August 18

    Hey 👋 well sorry I didn’t get any money 💰😞😔✌️✌️ Do to coronavirus. No money was made.

    1. Kristiana
      August 20

      Hi Jecelia,

      Thanks for reaching out. I hope this blog on how to get a POD business in 2020 will help going further.

      Best,
      Kristiana from Printify

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