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 we have good news for you: since October 2020, Printify has been applying sales tax to the states where we are registered to collect. It doesn’t mean you are no longer required to collect taxes in the states you have sales tax nexus, but you don’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.
Printify collects sales tax on all taxable products in every state we are registered. Please submit your resale or tax-exemption certificates.
Table of Contents
- What Is Sales Tax?
- How Do You Qualify for Sales Tax?
- Where Is Printify Registered to Collect and Remit Sales Tax?
- How Will Printify Charge Sales Tax, and How Will It Be Calculated?
- How to Register and Collect Sales Tax?
- How to Get a Resale Certificate After You Have Registered for Collecting Sales Tax?
- How Do I Set Up Sales Tax Through My Sales Channel?
- How to File a Return for Sales Tax?
- What Should You Do About the Sales Taxes? Also, TL;DR.
- Examples for Tax Calculation
- 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*.
The POD platform business model operates through two distinct transactions. The first transaction occurs between Printify and the merchant, where we sell the ordered products to the merchant. The second transaction takes place when the merchant sells products to their customers, and it becomes their responsibility to handle taxes based on their nexus and other applicable requirements. In the United States, the place of taxation is determined by the location of the purchase, specifically the states where the merchant’s customers are located and where the products are delivered.
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 is registered for sales tax purposes and therefore collects and remits sales tax. Find additional information on state and local sales taxes.
Printify currently collects sales tax in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Starting March 1, 2022, Printify will also begin charging sales tax in Puerto Rico.
Section 4
How Will Printify Charge Sales Tax, and How Will It Be Calculated?
1. Based on your customer’s destination (ZIP code) – Printify uses your customer’s shipping address to calculate sales taxes.
Please note that Printify collects 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 calculates and collects sales taxes based on resale certificates provided by the merchant.
3. For all sample orders – the sales tax is displayed at checkout and collected by Printify. The tax is also 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.
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 requesting a resale certificate from state authorities. Alternatively, if you’re already registered for the tax/sales permit in your state/multiple states, preparing MTC or SSTGB certificates on your own following the comprehensive guide we have put together here.
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: You are 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 API
More information will follow
Marketplaces as Sales Tax Facilitators
Etsy and eBay are registered as marketplace facilitators in the majority of states and are required to collect and remit sales taxes on behalf of their merchants. To avoid double-taxing, orders carried out through our direct integrations with Etsy and eBay will be exempt from sales tax charges. Before going further with your sales channel options, see if you need a business license to sell on 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?
- Check if/where you have a sales tax nexus.
- 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.
- 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.
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.
Written by
Krists Taurins
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158 comments
Thanks for the article! Understanding sales tax is necessary for every individual and business.
Hello,
I have some questions. I am based in the EU and I want to sell on Shopify to customers in the USA with a USA based print provider. I have no nexus. Does that mean I have no sales tax duties in the USA, and that printify would take care of that? Would it be the same for VAT? Will Printify charge me or my customer for the sales tax and VAT? Is the final price of the product for my customers what I see on my dashboard or will the sales tax and VAT be added on top when the customer checks out with his order?
Thank you
Hi Elias,
Here is detailed information about taxes when selling on Shopify. If you have more questions, feel free to reach out to the Support team! 😉
Hi there,
I am totally new to business, and am trying to wade through all these tax requirements. I’m setting up my exclusively online ecommerce store on Shopify using Printify. I have no physical retail store anywhere, my LLC is located/registered in the US, and I will be selling to niche clients all over the world. I primarily sell apparel and accessories (T-shirts, socks, duffles, etc) as well as some home goods such as candles, kitchen aprons and the like. I signed up for Shopify Tax, and hope that that will be all I need plus a tax software that will download the information to filing purposes for the US. I also set up for automatic shipping address for each product.
I have been trying in vain to figure out what to do about selling to Europe and elsewhere; have been desperately trying to find out how to get a VAT number and anything else I might need – IF I even need it yet as I haven’t yet made a sale anywhere. The store will be opening soon but I am hopelessly deadlocked on setting up this part.
All taxes and shipping will be charged to my customers – and hopefully VAT as well – but I don’t understand how to make it happen.
• Do I need to submit a resale certificate to Printify?
• I am terrified that orders will come in, and I will be hit with unexpected tax bills that I didn’t know to anticipate and work into my retail prices. Or that somehow I won’t have the money from sales to pay the tax bills.
Thank you for any clarication you might offer!
Hi Joyce,
It is great to see that you are interested in learning more about Printify. Here is an article that might be helpful and please reach out to our Support team for more assistance. Good luck! 😉
Hello, beginner here. I’m a student and I don’t have any tax Id nor does my father because our income doesn’t fall under the bracket where you need to pay taxes. So what should I do about this? Also I’m not from US, I’m from India.
Hi Saima,
You can find more useful info here and feel free to reach out to our Support team 😉
Do you have authorized printer in based in the Philippines?
Hi Tony,
We do not have Print providers in the Philippines at the moment but we are adding print providers often and hopefully, we will have more Asian based Print providers in the future.
Does the Printify WooCommerce integration account for sales tax and display it to the customer when they make a purchase via WooCommerce?
Regarding registering to collect sales tax, wouldn’t it be easier to never register anywhere and let Printify handle all the taxes? Or, am I missing something with Printify’s policy?
Hi there David,
Printify’s sales tax won’t be synced to WooCommerce. If sales tax is also charged on your WooCommerce store, then it is not done by Printify, but by the platform. Printify is not able to charge any type of payment directly from your customer or sales platform, due to payment system limitations.
Our company wants to use printify for print on demand. We are located in CA where we are registered and collect and remit sales tax to the state. We have nexus in Michigan where we collect and remit sales tax too.
If we start using Printify, do we need to register in all states? Will Printify collect and remit sales tax on states where it has nexus?
Hi Azem,
I believe you can submit MTC form and be exempt from Sales Tax in multiple states. You can find more information here.
If you need further assistance, please reach out to our merchant support team.
I have just started using printify and my question is what is the minimum amount of sales required for me to be taxed , I live in Ethiopia so how am I going to pay taxes .
Thank you
Hi there,
Depending on where your orders are being shipped to or from, taxes might be applied. If you need further assistance, please reach out to our merchant support team via the live chat on our website.
2 questions wrapped in one. I cannot find the “Etsy Sales Tax Exception” location to make the adjustment/settings. Second to that, I have Nexus in the state of Delaware where there is no Sales Tax, so would that matter to me? Thx!
Hi Mike,
Etsy and eBay are registered as marketplace facilitators in the majority of states and are required to collect and remit sales taxes on behalf of their merchants. To avoid double-taxing, orders carried out through our direct integrations with Etsy and eBay will be automatically exempt from sales tax charges. As for your other question, please check this article here for more info.
Hi All!
My company is a European-based Etsy seller. I have read all the comments but I still feel a bit confused. I have only Etsy sale channel and Etsy already collects sale tax for me. Do I need to take any action in this case? By the way, I could not find the “Etsy Sales Tax exemption form/letter” mentioned above in my account. Do I still need to fill out this document?
Hi there Halil!
Sales tax is a tax applied on retail purchases by the seller that is passed on to the state government. Only those orders that are fulfilled and shipped within the US are subject to sales tax. 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. Please see more information here.
Hi there,
I’m feeling incredibly confused! I’m a UK seller who has recently started a business on Etsy. I read an article about how Printify is branching out to the UK, so I decided to add some more products to my business using UK suppliers with Printify. I assumed there would be no sales tax if the supplier is based in the UK and I am selling to customers based in the UK… but I just tried ordering some samples of my products and about $5 of tax has been added on!! Just wondering why, and if this is definitely correct? It obviously makes each product much more expensive for my customers…
Many thanks,
Tawna
Hi Tawna,
Based on your description, it appears that you are referring to VAT. Only orders that are sent within the USA have Sales Tax applied to them. However, orders sent within Europe (also Canada, Australia and New Zealand) are subject to VAT. You can check out this Help Center article to learn more about it. If you have any further questions or need assistance, please feel free to reach out to our merchant support via the live chat on our website.
Hi! I’m currently living in Canada (Quebec) but I’m from Portugal. Is there something I need to do when doing my taxes in Canada if I’m selling products on printify?
Hi there!
If you’re a registered taxpayer in some provinces, you can receive an exemption by providing your tax details to Printify. In other cases, you’ll be able to reclaim the taxes via tax returns if you’re a registered taxpayer in Canada.
Just in case, more information can be found here and here.
Hello,
Starting a new Drop Ship Business with nexus in Oregon (no sales tax). WE believe it will take some months before (if) we meet the annual economic nexus thresholds in other states where products may be produced or shipped. Thus we will only apply to collect/remit/report sales tax when it is clear we will meet those thresholds.
Question: Will my Oregon Business Registry Resale Certificate be sufficient for Printify to NOT charge sales tax in situations where we utilize providers or ship to states that charge sales tax. Plan is to wait until such time as the business is BOOMING and surpasses the annual thresholds for sales in those states, so want to be sure the Oregon Resale Certificate will be sufficient at this time. Thank you.
Hi there Machelle!
Yes, you can file the Oregon resale certificate.
Also you can use the same resale certificate for other states that can accept out of state ID’s.
For more information, please feel free to get in touch with our Support team via live chat on your Printify account or here.
Hi, I have a new Etsy store and in set up phase, (my sellers permit is registered in CA) – I looked in your help section and it seems MTC with the CA registration will be the easiest. The below is from your website, can you please confirm this list is updated ? A quick google search brings up slight variances. Thanks
“Please note that for certain states not accepting out-of-state resale certificates, you should only use state-specific (native) registration data (if you are registered with the particular state). As of the date of this article, the following states listed on the MTC form would not accept out-of-state resale certificates:
Alabama
California
Florida
Hawaii
Illinois
Maryland
Pennsylvania
Washington”
Hi Christina,
Yes, it would be the easiest to submit the MTC form, or the SS form.
From the states you mentioned, the only one accepting an out-of-state certificate is Alabama. The rest will not accept them.
Hello Printify,
I’m sorry I’m late to the party, just starting out and have read countless documents on SST and MTC (and I rather read 1,000 furniture manuals twice over than complicated tax laws). I’m very glad I’ve run into this post.
My question is more of a confirmation: If I read and understand this correctly, so long as your Etsy shop is fully integrated (meaning no manual orders, but set to auto) with Printify, than I would NOT have to submit a resale certificate (SST, MTC, etc.) and Printify would not charge me tax on the order because it will see that Etsy has already charged the buying customer the appropriate sales tax and Etsy would be responsible for submitting said tax to that state, is that correct? In other words all I would have to do is integrate my Etsy shop (which I have already – verified) and set the order submissions to auto, yes?
Is the same true for a verified/integrated eBay shop as well or is there something else I would need to do for the eBay shop? Thank you so much in advance and again sorry for being late. Take care!
Best Regards,
-Jose
Hi Jose,
Thank you for your questions! If you have integrated your Etsy store to Printify and set the orders to automatic order approval, you will still be charged the sales tax on Printify’s side. However, you can fill out and submit an Etsy Sales Tax exemption form, which you can find on your Printify account, under “Indirect Taxes”. Once this is filled out and submitted, you will not be charged by Printify.
To be exempt on eBay, however, you will have to submit a Resale Certificate. You can find out more here.
Hi Folks,
Having read the article and every comment, I am still unsure as to how to proceed in dealing w/ tax liability. In my case, this is a US clothing start up with, I expect, nexus in one state where Printify is already registered to collect. I am using WooCommerce for the store. Unless I am mistaken, why shouldn’t I allow Printify to deduct tax at point of sale? It seems the clearest path for this seller. Or, is there something specific within WooCommerce I am missing? If I meant to set up tax deduction via WooCommerce, please let me know. And if that is so, wouldn’t I then have to get both tax and resale certs from my nexus state and submit to you, yes? If I need not set up tax deduction within Woo, how do I acknowledge such within Printify? Thanks again…I know this is tough stuff.
Hi Emmet,
Printify will charge tax on the sales in the ship-to locations in the US where we are registered. If you are registered as a sales taxpayer, then you can fill out a Resale Certificate and submit them to us in your Printify account. That way, you will become tax-exempt in the states for which you will submit the certificate.
30+ states accept out of state license numbers, meaning that even with one registration in one of the states, you can fill out an exemption certificate for the majority of the other states and be exempt.
Whether you need to charge tax on your sales to the final consumers (your customers) is not something we can advise about, as it depends on whether you have reached nexus threshold in the given jurisdiction or have physical presence there. But you should definitely consult with a tax specialist, as they will be best equipped to give you advice.
Hi there. I’m just starting out in POD and have recently started my shop and am using Printify to produce my product and use Shopify to host my store.
I wanted to sell in both Canada and the US but now I’ve came across all this information regarding sales tax and feeling a bit confused. I don’t want to limit my market but also don’t want to make things difficult for myself by selling in the US and being based in Canada.
I do have an Etsy I can connect and sell from but how does work if I wanted to sell from my Shopify? Can someone explain this to me since I’m not sure how US taxes work.
I read some situations in this thread that involve raising the price of my product to cover sales tax? Is this correct? Or are there still forms I’d need to fill out?
Hi Ryan,
We are obligated to charge sales tax for the orders that are shipping within the US. If you are using Etsy, then you can fill out the Etsy Sales Tax Exemption letter. If you are using any other sales platform, then you can try and get a Resale Certificate. However, it might not be an option, since you are not registered in the US, in which case there are no workarounds for being exempt from paying the sales tax to Printify. If you wish, you may increase your profit margin to help you cover these costs, however, that is completely up to you.
I live in Canada and just started. So just to be sure… Printify will collect sales tax from me, depending on the shipping address of my customer. Since I just started and don’t reach any economic Nexus yet, I don’t have to charge sales tax to my customers. I could apply for a resale certificate in every sates of the USA, to be exempt from paying sales tax to Printify, but that would means that I would then have to get the permit to collect sales tax from my customer (Because someone has to pay the damn tax!). At the end of the day, to minimize the taxes that both the customer and I would pay, I think it’s preferable to pay the tax from Printify, because it does not include the markup that we, as merchants, are making on products. If I’m right, then the example at section 10 should include a column, at the end, stating how much a customer would pay when ordering, tax included.
If I’m wrong:
If I get a resale certificate, to be exempt from paying the tax with Printify, but does not reach any Nexus in any states, does it mean that nor my customer and I would have to pay taxes?
Hi Joel,
Regardless if you have nexus or not, sales tax will be collected by Printify on all US orders (shipping to the US states). You may also submit a Resale Certificate in the states where you have obtained a sales tax license. If you have a sales tax ID, you may try to submit an MTC form.
Finally, if you would like to know how to register or what you have to charge the final customer, please reach out to US tax advisors, as they will be best equipped to give you a professional advice.
I am a seller from the UK who sells to the UK, do I need to apply as well? As far as I know, Tax is worked out at checkout. Thanks!
Hi Josh,
This article is referring to Sales Tax, which will be charged to all orders shipped within the US, where we are registered to collect Sales Tax. If you reside in the UK, but you sell in the US, then Sales Tax will be applied accordingly.
If you are selling within EU, then your orders will have VAT applied to them. For the UK, it is similar to IOSS, where we act as importer of the goods and hence charge VAT. Unfortunately, if you are not a registered VAT payer, you won’t be able to reclaim this UK VAT. The same will apply to items manufactured in the UK. We have to charge VAT on our sale to you.
If you have more questions regarding tax and or VAT, feel free to reach out to our merchant support team via [email protected].
I just filled out the Etsy sales tax exempt form. I am located in Canada but sell to the US as well. I was correct to fill that out or?
I just opened my shop with only minimal items so far through Printify.
Hi Sam,
Printify is obligated to collect sales tax on all orders shipped within the US, so if you’re located in Canada, but you sell also in the US, then sales tax will be applied accordingly. That said, yes, you can fill out and submit Etsy Sales Tax Exemption letter, which should exempt you from the sales tax on Printify’s side for all non-manual orders.
If you have any further questions or need more detailed information, feel free to reach out to our merchant support team via [email protected].
Hello! I am trying to understand this as it would apply to me. I have determined that I will have nexus in both Ohio and Florida. I have sales tax permits and a reseller’s certificate for both states. I would submit those to Printify to avoid the tax on my order but I would collect the sales tax from the customer and submit myself. Since I don’t have nexus in Indiana, for example, but Printify does – will sales tax be collected from me on my purchase for an order going to Indiana since you have nexus there? It seems that is the case. The only way for me to avoid this would be to go ahead and get a sales tax and reseller’s certificates from Indiana and submit to Printify – even though I don’t technically have to collect sales tax? Am I understanding this correctly?
Thanks
Hi Michael,
We will charge tax on orders going to those states, where Printify has nexus. But if you submit the necessary documentation to us, all orders going to the respective states will be tax exempt. As for collecting and remitting tax from your customers, you should consult a tax specialist, as they are best equipped to provide you with the advice which applies to your specific case.
How do I go about making a payment for sales taxes?
Hi there,
Sales Tax will be applied automatically to your Printify orders that are shipped within the US states, where we are registered. If, however, I have misunderstood what you are asking, please reach out to our merchant support team via [email protected] for more guidance.
Where do I send my ST-5 State of Georgia Sales Tax Certificate of Exemption form? And I assume I put Printify on the line that says “Supplier,” and Printify’s address on the line that says “Supplier Address.” And I also assume it is item number 1. that I select on the form (…for RESALE ONLY).
Hi Jean,
You should be able to fill out the Resale Certificate form in our Tax Wizard (in your Printify account) and submit there. However, if for some reason it doesn’t allow you to do that, you can reach out to our merchant support team – [email protected] – for further assistance.
For transactions between Printify and your company, Printify is the Seller and your company is the Purchaser. So where it will ask for “Issue to Seller”, you will have to put Printify and our address. Although I suggest you reach out to our merchant support team and double-check this with them.
If I’m understanding all this sales tax nexus stuff correctly, I need to submit a Resale Certificate in order to NOT be charged sales tax, since it will be charged on the sites where the sales will take place. Is that just one single form?And does it cover all states in the USA? Also, it seems like an awful lot of work when I’m just starting out and am unsure as to what sales I will even have. So does it make more sense to NOT do any forms until sales start happening?
Hi Jean,
Printify is currently obligated to collect sales tax on orders shipped within most of the US, and so are marketplaces such as Etsy, Shopify, eBay, etc. Since you are most likely using Printify for reselling purposes, it is advised to submit a Resale Certificate. You can easily submit it on our website, and you can fill it out for one specific state, or, if applicable, you can use your state tax ID to fill out the MTC form (see here). With MTC form, you will submit one form to be exempt from sales tax on Printify in multiple states.
As for if it would be best to wait for your first sales and then submit any forms or do it right away, I cannot tell you the best solution here. It really depends on you. You might as well submit the forms right away, because then you won’t have to worry about it later, and you will avoid paying sales tax on your first orders. However, you can also wait out and decide later based on your sales.
If you’re using Etsy, you can fill out the Etsy Sales Tax Exemption letter, which will exempt all Etsy automatic orders (manual orders, however, will be taxed).
Finally, you can check out our Help Center for more information on this and reach out to our merchant support team for help. However, we do advise to consult a tax specialist, as they will be best equipped to provide you with advice suitable to your specific case.
Hi Martha,
Thank you very much for the quick answer.
Could you please also clarify to me – how much time do I have before the order go into production?
Orders with what status can still be changed?
Orders can be edited and deleted while they are “On hold”. As soon as they go into production, you won’t be able to make any changes, so the only option will be to reach out to our merchant support team and request their assistance. However, just letting you know, that changes or order cancellation is not always guaranteed once it has gone into production.
As for your first question, you can set up your order approval settings on your Printify account. By default, orders are set to approve automatically in 24 hours. However, you can change the settings to “approve automatically in 12 hours”, “automatically in 1 hour”, “automatically at a certain time of the day” or “manual approval”. The latter means that no orders will go into production without your approval first.
You can find more information here.
Hi there,
I sell on Etsy, but I do custom design for each client. So I can’t just publish the product from Printify on Etsy, I need to create an order on Printify manually for each client.
So, how can I avoid double-taxing then?
Hi Julia,
In this case it would be best to submit a Resale Certificate.
Another alternative is to publish the product on your Etsy store and every time a customer places an order, you make a copy of the product with a custom design and replace the products before they go into production. That way the orders won’t count as “manual”.
Hello , I haven’t started/opened my shop. How works for Canada? Sell and buy in Canada.
Hello Jazmin!
You can work with our print providers from Canada – Big Oven Tees, Duplium or Print Geek. They offer shipping that is cheaper and on average takes 2 – 7 business days. On your sales channel you can also set currency to CAD using this guide.
Hello,
I am based in Switzerland and selling printed products to Switzerland and EU-countries. I would like to know if the prices I see for products and shipping (which I have to pay you for the products ordered by my customers) include VAT or if you are going to charge it on top of what I see? I want to know so I can do the right margin calculations (so I won’t lose money when selling my products).
Thanks,
Florian
Hi Florian!
Thank you for your question and our apologies for the delayed response!
At the moment, Printify does not charge VAT. Therefore, you will only be charged with the product price + shipping. However, Printify does charge sales tax, which is something that you need to consider if you are using any of our US-based print providers and the customer is also located in the US, as sales tax only applies to “US to US” orders. I’ll be happy to answer any additional questions about this, if needed.
Printify is planning to start charging VAT on “EU to EU” orders within this year though. Rest assured that you will be notified about any updates on VAT in advance of it being introduced – via announcement emails, as well as through in-app notifications.
I hope this answers your question!
Best regards,
Sabrina
HI, I have a bigcommerce store operating from Australia. Will I have any issues if my customers are located in the USA and buy a printify product from my store??
Cheers
Matt
Hi Matt!
Thank you for your question and our apologies for the very delayed response.
If you will be using US-based print providers for order fulfillment, then Printify has to apply sales tax if these orders are delivered within the US (“US-to-US” orders). Please take a look at the list of states in which Printify is registered for sales tax collection – these are the cases where sales tax will be charged (based on “ship to” address).
If you are just starting out or a low-volume seller, as well as are based internationally, then no further action in terms of sales tax 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. You can read more about this topic here.
Something else to consider – I recommend raising your retail prices slightly, in order to absorb the sales tax that is being charged on the Printify end, so that it doesn’t affect your profits.
I hope you will find this helpful – let me know if more questions arise!
Best regards,
Sabrina
If we are a nonprofit organization, is there a setting to prevent sales tax from being applied to any purchase? These items will be sold for fundraising only. Thanks!
Hi David!
Thank you for your question and our apologies for the very delayed response!
In order to become tax-exempt, we kindly ask you to submit a resale certificate or a valid proof of exemption for the state that is accepted by authorities.
I hope this answers your question – please reach out to [email protected] if you have additional questions and our team will be happy to help!
Best regards,
Sabrina
Please provide instructions on where to go in my account to view the amount of tax charged during October. I want to verify this for accuracy in jurisdictions that we have economic nexus to ensure that the amounts filed by Printify accurately reflect our compliance. I also want to ensure that the rates, etc. match what I have in my records.
Hi Krista!
Start by clicking on your account icon (upper right corner), and then choose Payments.
On Payments tab, choose Invoices and there you can see and download weekly and monthly invoices where there is a separate section for tax that has been charged.
Hope this helps!
Hi, I have some questions. I am an european ETSY seller, so if I decide to use a printify’s printing partner based in the US, and have no nexus, does it mean that I have no more sales tax duties as a seller? And will Printify charge me or my customer for printify’s sales tax? What is then the final price for my customer? Thanks
Hi Minh!
Thank you for your question – our apologies for the delayed response!
If you are an Etsy seller, then you should know that Etsy as a marketplace will already apply sales tax on the order when the customer is submitting it. This sales tax amount is then remitted to the applicable state by Etsy. This means that the end customer has paid the sales tax on these goods.
If you have followed this process, then sales tax won’t be applied to the imported Etsy orders on the Printify side.
Here is some additional info in case you are selling “unconnected” products but still fulfilling them by using Printify.
If you are just starting out or a low-volume seller, as well as are based internationally, 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, which may mean that you then have nexus in a certain state or states.
The goal is to have sales tax be applied to the same goods only once, and that the end customer pays this sum so that it doesn’t affect your profit margin. Etsy will take care of that by automatically applying sales tax to the order at the checkout, based on the customer’s delivery address.
I hope this answers your question! 🙂
Best regards,
Sabrina
Hey guys,
pardon me if this has already been asked:
If we do not have Nexus in any state, then we pay the tax in states where Printify has nexus. Can we pass this tax on to our client and list it as “tax” when the client buys from our store? (we’re on Shopify).
Or can we only recover our loss and “work it into the price” (since we’re not yet officially allowed to charge tax) and not list it officially on our site during the checkout process, FOR THOSE STATES ONLY.
Else – how do we solve us making less per sale on some states, but not others? Profit structure will be quite inconsistent ..
Would appreciate some insight into this ?
Hi Matt!
Thank you for your question – our apologies for the delayed response!
If you do not have a sales tax permit in at least one state, then you are not legally permitted to collect and remit sales tax in your store. This leaves you with the option of slightly raising the retail price of the product to absorb the tax that is being applied to the order on the Printify side.
Let’s say you did have a sales tax permit in at least one state, and therefore were permitted to collect and remit sales tax in your store – then we’d recommend submitting a resale certificate (or certificates) to Printify in order to avoid double-taxing. Please take a look at this diagram to better understand the process.
As for the fact that Printify does not charge the sales tax for all states at the moment – Printify intends to be registered for sales tax purposes in all states eventually. Therefore, it is only a matter of time and eventually the customers of all states would be in the same boat, so to speak. I fully understand your concerns with keeping the price as low as possible and not raising it across the board unnecessarily, however, I believe that in this case it will need to be raised for all states soon enough anyway.
I hope I have understood your question correctly and that the information is useful!
Best regards,
Sabrina
I’m slightly confused. So I am based in South Africa and will be selling on Etsy making use of Printify. How does sales tax work for people living in other countries? What should I submit?
Hi Alco!
Thank you for your question – our apologies for the delayed response!
Etsy is a marketplace that already collects sales tax on behalf of its sellers.
In case you are submitting the orders to Printify manually (which are intended for the Etsy customers) – please know that manual orders won’t be exempt of sales tax. However, you may want to look into this approach instead.
I hope you find this information helpful!
Best regards,
Sabrina
Hi wanted to know if I have to consider tax on shipping as well or is it included by the print provider. Kindly clarify.
Hi Monica!
Thank you for your question!
As I understand, you would like to know if shipping cost is also taxable. The answer is yes – for some of the states. Please see further information on this here.
If the order will be shipped to one of these states, then the shipping cost will also be included in the taxable amount. The information about this is included in our automatic tax calculation algorithm.
I hope this answers your question!
Best regards,
Sabrina
Hi Premvir!
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.
Please take a look at this diagram. This diagram refers to each state – if you do not have nexus in a certain state, but Printify does, then sales tax will be applied to the order on the Printify end. The ideal situation is that sales tax is paid in all cases where applicable (where either you, or Printify has nexus), but not paid twice on the same goods, which is why resale certificates come into play.
It means that if you have a seller’s permit for at least one US state, and if you are collecting and remitting sales tax within your store already, then you should not pay sales tax on the same goods in Printify. You can become exempt of sales tax on your Printify orders if you submit a resale certificate to us.
When it comes to other states where you are not registered for a seller’s permit – many states allow out-of-state resale certificates if you have not reached economic nexus (or any other type of nexus) in that state. An out-of-state resale certificate is a certificate that is created using your sales tax ID from a seller’s permit registered in another state. With this system you will only collect and remit sales tax in your home state, because you hold a seller’s permit there.
However, you have to be careful and pay attention as to when you reach nexus threshold in these other states where you have submitted an out-of-state resale certificates, this nexus can be determined by either revenue in that state or total orders, or in some cases both. This needs to be checked with each state authorities.
More information and tutorials on creating/submitting an out-of-state resale certificate can be found here.
As always, we advise to consult a tax professional on these matters, so that they can provide you with suggestions for your specific situation.
I hope you found this information helpful!
Best regards,
Sabrina
the exemption certificate wizar is asking me for ohio, texas and others states tax registration number, and i dont have it because i don’t live in the usa, and it’s my firdt time selling in etsy printify, what shouls i do?
If I only have a sellers permit for CA where I work from home, that is the only place I can collect sales tax? Unless I have a nexus elsewhere? Would the place where my products are printed be considered a nexus?
Hi Cole!
Thank you for question!
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 will only collect and remit sales tax in your home state, because you hold a seller’s permit there.
However, you have to be careful and pay attention as to when you reach nexus threshold in these other states where you have submitted an out-of-state resale certificates, this nexus can be determined by either revenue in that state or total orders, or in some cases both. This needs to be checked with each state authorities.
Therefore, you may use your CA resale certificate for other states that accept out-of-state resale certificates, but all taxes you have to collect will be in CA.
As for your other question – sales tax on online orders is being applied based on the “ship to” address, not based on where they were printed/produced.
I hope you find that helpful – let me know if you have more questions!
Best regards,
Sabrina
Hello,
I was about to publish my products from Printify to Shopify to sell them in the United States but this new taxation thing came up. I have understood that I will need to get a resale certificate so the tax can be added in the retail price in Shopify and not in the cost price in Printify, is that right? Where can I get that resale certificate?
Thank you in advance for your response.
Hi Marcelo!
Thank you for your question!
The answer depends on whether you are located in the US or not.
If you are – I’d recommend that you register for a seller’s permit in your home state (where you’re located in). Then use the sales tax ID from the seller’s permit to create resale certificates, submit them to Printify and your Printify orders will be exempt from sales tax. Please note that once you have a seller’s permit, you are required to collect and remit sales tax within your store.
If you are an international seller – 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.
Please take a look at this diagram.
If you are just starting out or a low-volume seller, as well as are based internationally, 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.
Something else to consider – you may want to raise your retail prices slightly, in order to absorb the sales tax that is being charged on the Printify end, so that it doesn’t affect your profits.
I hope this answers your question!
Best regards,
Sabrina
What if you have not sold anything yet, due to, for example, the fact that you have just started and are still experimenting?
Hi Anna!
Thank you for your question!
As I understand, you are an international seller (please let me know if I am mistaken).
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.
Please take a look at this diagram.
If you are just starting out or a low-volume seller, as well as are based internationally, 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.
Something else to consider – you may want to raise your retail prices slightly, in order to absorb the sales tax that is being charged on the Printify end, so that it doesn’t affect your profits.
I hope I have answered your question, let me know if you have further inquiries!
Best regards,
Sabrina
No offense, but if eBay is already charging sales tax on orders, and you KNOW it and ADMIT it in your responses, then that is enough for you to not charge sales tax a second time. Having us have to go through all this bullshit hassle to create all these unneeded forms when you already admit that you know the connected storefront already charges is just lazy on your end.
I’ll shut down my store and move it somewhere else before I go through all the effort of doing your job for you.
Hi Rick!
Thank you for your feedback – you are correct, however, please know that we are not happy with the situation either. Our team is looking into creating a similar approach for eBay users as well, however, the process rather complex to implement, so at this time submitting resale certificates is really the only option.
While I am sad to hear about your decision, I fully understand your reasons behind it and I hope you will reconsider Printify in the future. Furthermore, I am hopeful that our team will be able to create a solution for the current situation to make things easier for eBay users.
Please let me know if you have any further inquiries.
Best regards,
Sabrina
I am UK based and sell in to the US but have no economic nexus (or physical). How do I exempt myself from sales tax for my sales through shopify?
Hi Chris!
Thank you for your question – our apologies for the delayed response!
If you don’t have nexus, it means that you don’t need to register for a seller’s permit and you are not required to collect and remit sales tax. However, since Printify has nexus, Printify is obligated to charge sales tax on the goods being shipped to the states that Printify is registered in.
Please take a look at this diagram to get a better understanding of this.
It is unlawful to charge sales tax from the end buyer in your store, if you are not officially registered to do so. Therefore, the only other option would be to raise the product retail prices slightly, in order to absorb the tax that will be charged on the Printify end.
Alternatively, if you have many international customers, then you might consider raising the US shipping prices, in order to charge more from the US customers only.
Please note that Shopify does not collect sales tax on behalf of its sellers, therefore, the process is different from the Etsy situation, in case you were referring to that.
I hope I have answered your question – let me know if I can be of further help!
Best regards,
Sabrina
Hi there, i wanted to ask you guys about manual orders from Etsy. Some of my listings have manual order options which i then fulfill through printify. So even if i have confirmed my status as a seller on Etsy.(tax exemption) do i still need to pay taxes due to manual orders?
Hi Niman!
Thank you for your question – our apologies for the delayed response!
Yes, that is correct – the Etsy sales tax exemption letter only applies to orders that are actually importing from Etsy.
Unfortunately, the only options of becoming tax-exempt on manual orders that you are creating for your Etsy customers would be that you submit a resale certificate (or certificates) to Printify, or if the orders are actually being imported from Etsy into Printify.
The reason for that is that Etsy has not provided us enough information to verify that the orders have indeed been resold. While Printify knows that the merchants are, for the most part, resellers, anything other than a resale certificate would not qualify as valid proof for the state authorities.
Our hands are tied here as much as yours – our team will look into a solution regarding this as soon as possible, because we are not happy with the situation and completely understand where you’re coming from. However, as things stand right now, there is nothing else that can be done about manual orders to grant them tax-exemption.
I hope this answers your question – let me know if I can be of further help!
Best regards,
Sabrina
Hi Niman!
I hope you’re doing well.
I wanted to follow up with you and let you know of this alternative method that you might want to consider using.
That being said, please note that there is a difference:
Manual orders – orders that are created within Printify, by clicking on Orders > Create Order.
Etsy sales tax exemption letter does not grant tax exemption to these orders.
Manually imported orders – orders of “unrecognized” products that import to Other Orders tab as drafts, and can be manually imported to the main orders tab and sent to production.
These orders will be exempt from sales tax, if the Etsy sales tax exemption letter has been completed.
I hope that helps!
Best regards,
Sabrina
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?
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
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
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
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
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
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.
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
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?
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
Is clothing the only products that will be taxable?
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
Guys please make a simple sales confirmation form on Etsy. Try to keep it simple Printify as before.
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
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!
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
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
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
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?
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
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?
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
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.
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
When I apply for the sales tax permit, under “entity type”, what should I put? Sole proprietor? Thanks so much in advance.
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
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?
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
What the hell is a Nexus?
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
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?
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
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?
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
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?
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
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?
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
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!
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
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!
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
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
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
But how to get confirmation from ETSY that they are collecting taxes for sold products?
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
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!
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
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.
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.
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
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!
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
What will this mean for any manual Etsy orders that need pushing through? Have had a lot of issues with integration recently.
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
Hi M!
I hope you’re doing well.
I wanted to follow up with you and let you know of this alternative method that you might want to consider using.
That being said, please note that there is a difference:
Manual orders – orders that are created within Printify, by clicking on Orders > Create Order.
Etsy sales tax exemption letter does not grant tax exemption to these orders.
Manually imported orders – orders of “unrecognized” products that import to Other Orders tab as drafts, and can be manually imported to the main orders tab and sent to production.
These orders will be exempt from sales tax, if the Etsy sales tax exemption letter has been completed.
I hope that helps!
Best regards,
Sabrina
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.
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
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.
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
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?
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
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.
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
Resale certificat, what does it mean Specifically?
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
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
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
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.
Hi there,
Thanks for sticking with us at Printify on your POD journey!
Best,
Kristiana from Printify
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?
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
Hey ? well sorry I didn’t get any money ???✌️✌️ Do to coronavirus. No money was made.
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