Facebook/Instagram Shopping Collecting Sales Tax out of state

[goodmorningbaby]

Hi there!

My bookkeeper reached out to me about my FB/Instagram shop that I enabled through instagram (now customers are able to checkout directly on Insta/FB instead of having to leave to go to my site) and said Facebook has been collecting sales taxes on these orders for out of state orders (I should only be collecting sales taxes for Washington orders as I am physically located in Washington). Is this something I can update in settings somewhere or does FB just collect these sales taxes in other states no matter what?

[BolsaNova]

We are we having the issue.  Did you ever resolve this?  Shopify said I had to contact Mets which doesn’t really makes sense to me.  

[bookkeepapp]

Sorry for the late response here....At bookkeep.com we automate accounting for Shopify, Etsy, Walmart, Amazon seller and many more. 

We have found that sales on Facebook/Instagram using the Shopify connector are being deposited using Shopify Payments but then sales tax is being withheld from the deposits because Facebook/Instagram are paying the sales tax.  These withholding are hidden in the adjustments.  At bookkeep.com we can help you automate the accounting for these transactions.  Were you able to solve the issue yourself?  Happy to help just reach out.

Jason

[andreahipsher]

Hi! We are starting to run into this same issue! Were you able to resovle?

[goodmorningbaby]

Hey! From what I was able to gather, it sounds like the taxes that facebook collects are in their hands not ours. It is up to them to report those taxes to the states they operate in and not the small business? This could be wrong but thats what Im going with!

[NoA2]

FB/ Instagram collects sales tax only in MPF (marketplace facilitator) states and files them for you. Just make sure that your sales tax information is set up correctly in Commerce Manager (FB).

If your business is responsible for sales tax in any FB non-MPF states, you/ your business will need to file sales tax it in those states.

Below is link to list of Facebook MPF states:

https://www.facebook.com/business/help/225860631518504?id=540542143143969

Additionally, if business has sales on other portals (e.g. website or shop), in states in which has to report sales tax, even if FB already reported sales tax in those states, you will need to file and pay sales tax on sales from website or shop, but not include sales from FB/ Instagram in the report, since those have been filed and paid by FB.