Financing, tax rates, and accounting
I am currently using Printful and Etsy and about to launch my first Shopify using Printful. I have been searching online, but still don't feel like I have a straight answers on sales tax with POD. If anyone could help with some guidance it would be greatly appreciated.
My LLC is registered in California and I applied for my sellers permit in California as well (should be here any day). As I understand it, I will provide my sellers permit to Printful and they will not charge me sales tax for orders shipping within California. I will need to charge customers sales tax if they are shipping in California and will need to remit it to the state quarterly.
I understand that portion but I am unclear on how things work with the other states. I don't have Nexus in any other states. Am I responsible for collecting sales tax in any other states at this time due to Printfuls locations/Nexus?
Will Printful charge me sales tax for any other states?
And if so, I can't really charge the customer since they are paying at time of order and printful is remitting it. Do I just not need to worry about printful's nexus and use the tax feature in Shopify to determine if I am getting close to a states nexus threshold?
At that point, do I need to apply for a sellers permit in that state?
Thank you for any guidance from anyone!!
Hi, @HaleyC.
Whether or not you will need to apply for a seller's permit or charge taxes on your store in a particular region will depend on several different factors. Because of this, and due to the fact that tax laws and regulations can change often, you'll need to consult with your local tax authority. They can help you verify whether or not your business will need to apply for a seller's permit, as well as ensure that you're filing and remitting your taxes correctly.
Although we aren't tax experts and aren't able to provide tax advice, we do have some guides that you can read to get you started and help answer some of your preliminary tax questions. Feel free to take a closer look at them below:
I also came across a couple of tax documents from Printful's website that I think may further help too:
While Shopify doesn't remit or file your taxes for you, we've recently launched a new feature called Shopify Tax, to help US merchants improve the accuracy of their tax calculations for local customers. If you're a new merchant, this feature will have already been added onto your store automatically, so I recommend going through our help guide here to familiarize yourself with the functionalities that Shopify Tax currently offers.
Kimi | Social Care @ Shopify
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