▶ Spoonflower is asking me to complete tax information, which is something I’ve never had to do on other Print-on-Demand (POD) sites. What does this mean?
Spoonflower is required by the IRS, the tax authority for the US, to collect tax information from all artists who make their artwork (Content) available for sale in the Spoonflower Marketplace. This means that Artists who earn money through selling on our site will need to report Spoondollar commission (aka royalty) payments over USD$10.00) in an annual statement to the IRS known as a Form 1099 or 1042-S.
▶ Why are you charging sales tax?
A Supreme Court ruling gave US States the authority to require e-commerce businesses to charge and collect sales tax on shipments into their state, even if the business does not have a physical location in that state. On November 15th, 2018 we began collecting sales tax for all states that require this remittance.
▶ When is sales tax rendered on a purchase?
Sales tax is rendered on a purchase if the order contains items that are taxable in the state to which they are being shipped.
▶ My state does not have sales tax. Do I have to upload anything?
Sales tax is determined by where the shipments are sent. If your shipments are sent to a state which does not charge sales tax, you do not need to upload any documentation. Sales tax will not be charged on those shipments.
▶ What if I am exempt from sales tax in my state?
If you are exempt from sales tax in your state, you are welcome to upload your exemption status to your Spoonflower account as listed below. Correct documentation varies by state, and will allow us to bypass charging sales tax on your orders shipping to that state. Please note that exemption status will only apply to orders placed going forward; refunds may be made for sales tax paid on qualifying orders within the previous 30 days. See below for questions covering additional information.
▶ I am having trouble completing my state exemption / resale certificate. Can you help?
Many states have their own specific forms. There are 36 states that accept the "Uniform Sales & Use Tax Exemption / Resale Certificate - Multi-jurisdiction" form. You can find that at the bottom of this article. Generally speaking, you will be providing 7 items regardless of what form you use. They are:
- Seller name and address (in this case, Spoonflower, Inc, 3871 S Alston Ave, Durham, NC 27713).
- Purchaser/Buyer name and address (your business name and address).
- What type of business you are engaged in that qualifies you to be exempt from sales tax (ex: Wholesaler, Retailer, Manufacturer, Reseller, etc.).
- Description of your business (ex: you sell baby blankets, pillows, napkins, dolls, clothing, etc.).
- Description of what you will be purchasing from Spoonflower and its use in the products you provide to your customers.
- The ID number your state assigned you when you registered with them for sales tax purposes. Many states call it a Seller's Permit.
- Your signature, as the form is invalid without it.
▶ How do I upload my tax exempt status?
You can find a Uniform, Multi-jurisdictional form and instructions at the bottom of this article. Simply complete the form, sign it, date it, and upload it to the sales tax portion of the Tax Info tab under your Spoonflower account.
▶ I uploaded my tax exemption information. Now what?
Spoonflower will process your paperwork and reply once we have confirmed your status. We will email you when this process is complete. If you do not receive an email, check your junk/spam folder, as we may require additional information.
▶ Do I have to upload a Tax Exemption / Resale Certificate in order to continue to purchase fabric on Spoonflower?
No, you do not. The Certificate is only applicable if you are registered in your state as a seller and are reselling your Spoonflower purchases.
▶ Is it enough to submit just my state Seller's Permit, or my business registration certificate?
No. Spoonflower needs a Tax Exemption / Resale Certificate from you in order to be able to exempt your purchases from sales tax. Your seller's permit or business registration may qualify you for tax exemption or a resale certificate, but that info alone is not enough for us to exempt your orders from sales tax.
▶ What if I have a Federal Form SS-4 with my Employer ID Number?
Sales tax is a state tax determined by each state individually. Your Federal forms will not apply.
▶ Do I need to file for a sales tax exemption in Spoonflower's state in order to not have to pay sales tax on resale items?
Not necessarily. The taxability of your purchases is determined by where the purchase is shipped. In order for your purchases to be tax exempt, you would need to supply Spoonflower with a Tax Exempt / Resale Certificate for the state where you receive your shipments.
▶ I just uploaded my resale certificate. Can I be refunded for sales tax paid on past orders?
Sales tax can be refunded for purchases made within 30 days prior to the date of upload of a valid resale/tax exemption certificate. Purchases made before the 30 day mark have already had taxes remitted to the state of shipment, and cannot be refunded.
▶ I uploaded my certification but have not heard anything back. What should I do?
If there were any questions regarding the initial documentation you uploaded, our accounting department will email you for more information. If you haven't received anything, please check your spam/junk folders as sometimes messages are incorrectly delivered.
If you have any orders that may be eligible for a refund once this exemption is approved, please contact to Spoonflower help and we will take further steps to help you.
▶ My resale certificate has been accepted. How do I request to get a refund for the sales tax of my previous orders?
Contact Spoonflower using the email address of your account. This will help us confirm your tax exemption. Please reference the order number(s) in question, as that will help up locate them more efficiently. Remember, we can only refund the tax on orders placed within the 30-day window before the exemption certificate was uploaded.