Is the facebook/IG channel taking money from me? I'm new to shopify

ChadOJackson
Visitor
3 0 2

I'm having a hard time understanding what I'm looking at here on my payout page from shopify. I am making, selling and shipping screenprinted shirts for $30 each. I successfully connected the facebook/IG channel in order to sell the products on my instagram as well. However, I went to look at my upcoming payouts a second ago and saw that the $554 worth of sells I made over the weekend is actually being downed to $243 due to "charges" (see pic 1). When I clicked on transactions to see what the charges were, I saw that there were numerous negative numbers in the "NET" column of transactions (see pic 2). When I click on the drop menu for an individual transaction to learn more about the "charge", I see that it says "Adjustment (Sales tax sent to Facebook & Instagram)" (see pic 3). Where did the rest of the $30 go for the individual transaction?

 

PIC 1

Screen Shot 2022-12-05 at 11.40.36 AM.png

 

PIC 2

Screen Shot 2022-12-05 at 11.33.12 AM.png

 

PIC 3

Screen Shot 2022-12-05 at 11.48.37 AM.png

Reply 1 (1)

TW8
Visitor
1 0 1

I was wondering the same thing... Finally found this on the META business help center...

Why Facebook collects sales tax in certain states

Sellers can use our platform as a marketplace to sell products and services. Recent state tax law developments require Facebook to collect sales tax in states where our activities meet the threshold of a marketplace facilitator (MPF). This means that sellers on Facebook or Instagram in MPF states are no longer required to remit sales tax on their transactions, as we're required to collect and remit for them. This applies even to states where sellers aren't otherwise required to collect sales tax.

How sales tax is calculated in non-MPF states

In non-MPF states, Facebook calculates sales taxes for all states where sellers have nexus, which they indicate when they provide a state tax registration number. Sales tax rules vary by state, so sellers should contact their tax authority to learn about their state tax obligations.

Sellers must keep information correct about tax nexus, product tax code assignments and related details in Commerce Manager.

Sellers are responsible for reporting and remitting taxes for sales in non-MPF states and local jurisdictions.