Why Do I See Sales Tax On My Order?

In June 2018, the US Supreme Court ruled in South Dakota v. Wayfair, Inc. that physical presence in a state was no longer required for a state to impose sales tax obligations on retailers. Simply put, if an online marketplace does business in a state, it, or its sellers, may be required to collect sales taxes.

Click here to read more about South Dakota v. Wayfair, Inc. 

Please note: the sales tax amount may change after a seller updates your order to include shipping costs. Click here to see if your state charges sales tax on the cost of goods and shipping.

If you are a seller, or a buyer who has questions about how sales taxes impact Discogs sellers, please visit our U.S. Sales Tax In The Discogs Marketplace help article.

 

Marketplace Facilitator (MPF) Sales Tax

Marketplace Facilitator sales tax laws now exist in many states. These laws require the operator of an online marketplace, like Discogs, to collect and remit sales taxes.  Discogs, as a Marketplace Facilitator, is responsible for collecting and remitting sales tax in the following states beginning on the effective dates listed next to each state.

Alabama

7/1/2019

New York

7/1/2019

Arkansas

7/1/2019

North Dakota

10/1/2019

California

10/1/2019

Oklahoma

7/1/2019

District of Columbia

7/1/2019

Pennsylvania

7/1/2019

Idaho

7/1/2019

Rhode Island

7/1/2019

Indiana

7/1/2019

Texas

10/1/2019

Iowa

7/1/2019

Utah

10/1/2019

Kentucky

7/1/2019

Virginia

7/1/2019

Nebraska

7/1/2019

Washington

7/1/2019

New Jersey

7/1/2019

West Virginia

7/1/2019

New Mexico

7/1/2019

 

 

 


Resident or Remote Sellers Sales Tax

A Resident Seller is a seller who is located / resides in a U.S. state or territory and must collect sales tax in that state / territory. 

A Remote Seller is a seller who is not located in a U.S. state or territory, but who makes sales to buyers in another U.S. state or territory. Depending on the scope of their operations, a seller may be required to collect sales tax for your state. This also includes Sellers located in countries outside the U.S.

Please note that you, as a buyer, may be required to pay use tax in your home state if sales tax is not collected by either the marketplace who facilitates the sale or the seller you purchased your item from. It is up to you to know and understand the sales and use tax laws in your home state.  

 

Does my state charge sales tax on goods plus shipping? 

The states listed below require sales tax to be collected on the cost of goods plus shipping. All other states collect sales tax on the cost of goods only or have no sales tax.

  • Arkansas 
  • Colorado 
  • Connecticut 
  • District of Columbia 
  • Florida 
  • Georgia 
  • Hawaii 
  • Illinois 
  • Indiana 
  • Kansas 
  • Kentucky 
  • Louisiana 
  • Michigan 
  • Minnesota 
  • Mississippi 
  • Nebraska 
  • New Jersey 
  • New Mexico 
  • New York 
  • North Carolina 
  • North Dakota 
  • Ohio
  • Pennsylvania 
  • Rhode Island
  • South Carolina
  • South Dakota 
  • Tennessee 
  • Texas 
  • Vermont 
  • Washington 
  • West Virginia 
  • Wisconsin 




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