- Why are you charging sales tax?
Since its inception, Spoonflower has covered state sales tax on behalf of our customers for any state in which we have nexus. However, a recent 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, and cannot be applied retroactively.
- I am having trouble completing my state exemption / resale certificate. Can you help?
Many states have their own specific forms. There are 38 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, 2810 Meridian Pkwy, Suite 176, 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.
- 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 your 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 your resale certificate, so long as the purchases fall within the valid dates on that certificate. For example, if you upload a resale certificate on January 30th, and the certificate is only dated to January 15th, you can be refunded for sales tax on purchases made between January 15th to 30th.