US Sales Tax – When Does Podify Charge Tax, and What Is the Sellers Responsibility?
In 2018 the US Supreme Court ruled that states have the right to charge Internet retailers sales tax the same as in-state retailers. Before this ruling online stores were privileged to be able to offer their products to customers out of state and not have to charge them sales tax, giving these sellers an unfair advantage.
Currently there are 37 US states that have elected to collect sales tax from Internet retailers, each with their own requirements. In some states the threshold can be very high and in other states very low. The sales tax can also vary between different counties and cities within the states.
Podify is required by law to collect from Podify merchants sales tax. Podify merchants who are tax exempt and can provide certifications should contact us to have tax not applied on their orders. The tax requirements are the same for merchants who reside in any country – what is important is the customers shipping location.
Unless the merchant meets the thresholds, Podify merchants cannot and should not charge their customers sales tax. More information here.
For both Shopify and manual orders tax is calculated at time of payment by Stripe API and presently will not show before payment is made (we are working on possible technical solutions for this).
The following list is states where Podify will charge sales tax:
- New Jersey
- North Carolina
The list is subject to change.