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Today we'll be answering a few questions about sales tax, including what it is, why it's collected, and when and how to collect it. Wes and Jennifer from TaxJar will also go over some common questions about drop shipping sales tax and sales tax with Printful. Visit TaxJar’s Sales tax with Printful & dropshipping page: http://bit.ly/2ShuBK4 __________________________________________________________________ Video topics and mentioned links: 0:52 What is tax and why is it important? 1:45 When to collect sales tax? Economic Nexus Blog - http://bit.ly/2O2lONG 3:47 Marketplace facilitator laws Marketplace Facilitator Laws Explained - http://bit.ly/2Sm8fal 4:34 How to collect and remit Sales & Transactions calculator - http://bit.ly/2XOlG99 International sellers blog - http://bit.ly/2LVElZl Non-taxable products - http://bit.ly/30BhDtK How to register for a permit - http://bit.ly/2GPwmLJ Sales Tax Accountant Directory - http://bit.ly/30vfUGe Adding a resales certificate - http://bit.ly/2XRKE2n State Sales Tax Map - http://bit.ly/2XOo13V 8:11 Drop shipping + Sales tax 9:26 Recap _________________________________________________________________ Printful is the easiest order fulfillment system you'll ever use, free to set up, and with no monthly fees! You sell products on your store, we automatically process and fulfill them when orders come through, and ship them out to your customer. Easy as that! Check out these YouTube tutorials: Printful - How it works: http://bit.ly/2UH8OLX Getting started with Printful: http://bit.ly/2GchMOa Printful tutorials: http://bit.ly/2SctCOu Follow us on social media: Facebook: http://bit.ly/2RJOzLW Twitter: http://bit.ly/2WKB1n9 Instagram: http://bit.ly/2Vs9jP1 Subscribe to our blog to get the inside scoop and suggestions on how to make the most of your online drop-shipping apparel store: http://bit.ly/2GctN5Y Subscribe to our youtube channel to help guide you through our drop-shipping paradise: http://bit.ly/2MRU5uN Get in touch with us at: [email protected] or (818)3517181 Monday to Friday from 9am to 8pm EST ________________________________________________________________ About this video Tax is a percentage of the sales price of a taxable product, put in place by the government. The government uses this money to pay for public services, like schools and roads. Sales tax is governed at the state level, which means each state gets to make its own laws. This means that each state collects sales tax a little differently. Sales tax is a “consumption tax,” which means it's only charged when the end consumer buys goods or services. It's also known as a “pass-through tax,” because even though a business charges sales tax, they don’t keep it. Businesses are required to collect it and remit it - or pass it through - to the relevant government. This means that we at Printful are required to collect and remit sales tax on purchases our customers make based on their retail price. So, that leads to the obvious next question, how do you know when to collect sales tax? You need to collect sales tax from sales in states where you have “sales tax nexus.” Sales tax nexus is having a physical presence in or a meaningful connection to a state that requires you to comply with their sales tax laws. This means that you would need to collect and remit sales tax when someone from that state makes a purchase. These are a few common factors that create sales tax nexus: *If you have a physical location *If you have employees or salespeople *States you store inventory in *If you make enough sales in a state, in dollars or transactions This is also referred to as economic nexus and has caused some confusion for a lot of online sellers. To help we have a simple table, to sum up the most common tax situations you will fall into when working with Printful. When Printful has nexus and you have nexus: Printful charges you tax unless you submit a resale certificate You charge your customer tax When Printful has no nexus and you have nexus: Printful doesn't charge you tax You charge your customer tax When Printful has nexus and you have no nexus: Printful charges you tax unless you submit a resale certificate You don't charge your customer tax When Printful has no nexus and you have no nexus: Printful doesn't charge you tax You don't charge your customer tax ____________________________________________________ #Printful #PrintOnDemand #SalesTax