So one of my most important questions was answered in this video--if you're using Printful's print-on-demand services, their locations don't give you nexus (but if you use Printful's Warehousing and Fulfillment services, then you have nexus where your inventory is being stored). So since I only have nexus in one state, I only have to worry about charging sales tax in my state, until I reach the threshold for Economic nexus in other states. However, Printful is still going to charge ME sales tax for each of my customers' orders based on the state the customer is in and the states where Printful has nexus. I was thinking that means that in my Shopify store, I should charge sales tax for each of the states that Printful has nexus in, since Printful will be charging ME that sales tax on behalf of my customers' orders. Would that be correct? Or am I actually not allowed to charge sales tax (or at least label it that way) for customers in states where I don't have nexus and therefore don't have a Sales Tax Permit? (Because Printful will be the one collecting the sales tax from ME on behalf of my customers and therefore Printful will be the one to remit it.) Does this mean I should raise the prices of my products in order to account for this?
@@Faustvonholle Hi there! We're having some issues with TH-cam marking the reply comments as spam and not displaying them. We're working on getting the replies to you!
Hi there, Thanks for the question! If Printful has nexus, but you do not, then you do not charge sales tax to your customers. Printful would charge your company sales tax in this instance, unless you provide them with a resale certificate. Even though you've already paid sales tax on items you're selling, as a seller, you should only collect sales tax on taxable items you sell to customers in states where you have nexus and have registered for a license. The taxes you paid when you purchased the item have no bearing on this. However, if you have a sales tax license and you're trying to recover sales taxes you previously paid on items for resale, we have tips to do this in the blog post here: blog.taxjar.com/resellers-how-to-recover-sales-taxes-charged-by-vendors/ More on drop shipping with Printful and sales tax here: www.taxjar.com/printful-drop-shipping-sales-tax/ Keep in mind that sales tax rules vary by state, and because we're not sales tax consultants, we're not able to offer specific advice or guidance for your particular scenario. You you may want to get advice from a sales tax professional who can take a look at your drop shipping setup and provide a detailed nexus assessment. We have a list of vetted CPAs and sales tax consultants who have worked with our customers here: www.taxjar.com/sales-tax-accountant-directory/
@@taxjar Thank you for the links and explanation! The TaxJar blog about recovering sales tax helped clear things up a bit. It's frustrating that I will basically have to eat the cost of sales tax for those other states, but at least that makes sense.
@@TheDollFairy Glad to hear that we helped clear things up. We do also recommend consulting with a tax professional on how best to recover some of these costs, as TaxJar is unable to provide legal advice. Best of luck!
This is so fcked up. The entire pitch to build a print on demand business is that it's a fairly passive model, now if I sell more than 200 products per state I have to start tax relationships with each state!? I live in Europe ffs.This is a huge issue that should be mentioned BEFORE you spend months building a POD business.
no, it's when you sell to someone living in that state while your company is located in it. It's the same in Europe, if you sell enough in one country you should register for VAT there.
@@michelleh4717 it sounds opposite to my ears:) they say taxes depend on customers location vs Europe it's origin location under the treshold. above the treshold yes mam you register for VAT there........
So how do you sell in US do you collect taxes I know you pay tax if you are within the state of the customer but what if you're outside the us and printful needs nexus tax... I don't know it's really fucked up it's better to pay an expert to deal with all of this shit rather your brain smoke out...
I know it's been over a year ago since your post, but have you figured out how to build a POD business in the US as a European? I'm in the same situation right now :D
Thank you for your feedback and we're sorry to hear that you didn't find this video any sooner. We try to provide our customers with helpful and inspiring content across different online platforms, and in addition to our TH-cam channel, you can also have a look at our blog here > www.printful.com/blog/ There we publish articles on different relevant topics on regular basis-hopefully, some of them also help you out 😊
why it's so confusing ? I am from europe, i want to start my own prinftul store using woocomerce and i cant because of this tax thing it's so confusing...
It can certainly be confusing and overwhelming at first. You can search for more information in our FAQ on Taxes and Billing here: help.printful.com/hc/en-us/categories/360002570579-Taxes-and-Billing And in cases like this, we always strongly suggest our customers to consult with a tax specialist.
I just saw the blog regarding my state’s sales tax (California). I says that I would have to register with the CDTFA if i exceeded $500,000. Does that mean if I am under that (doubtful I will reach that right away), that I would still have to file?
hello hello .. so at the end after my calculations of net profit per tees (5-7$) BEFORE taxes (x2)from etsy and printful .. and maybe spome governement taxes also.. do you really make profit at the end as a dropship store on netsy ! ? ;...
this is a good point; I am starting up a, e commerce for helping my book launch and create a movement ... 50% proceeds go to a noprofit... I am far from dropshipping for money !!!!!!!!!!!
So is this monthly? if i don't charge taxes i get charged? what, I'm so confused. I feel like you aren't really telling me HOW to collect and remit the taxes just throwing a lot of information at me.
We're sorry to hear that you didn't find the video helpful enough. You can find and read more about the sales tax in our FAQ here > help.printful.com/hc/en-us/sections/360004088900-Sales-Tax Additionally, if something remains unclear, we always advise our customers to consult with tax specialists just to be entirely on the safe side and make sure everything is in compliance with the respective law.
If anyone from printful is monitoring this, I have a question. I plan to use the print on demand service and NOT the warehousing aspect of printful. I plan to submit a resale certificate for where I have nexus. In the diagram at minute 8:50, it is indicated that I would still need to collect tax from the customer even if I don't have a nexus in the state because printful has a nexus. Is this the case for the print on demand service? Earlier in the video, it is said that if you are using the printful print on demand fulfillment, then that does not meet the nexus requirement.
We're legally obliged to charge sales tax in states where we have nexus unless you submit a resale certificate. Even if you don't have nexus, we might have to charge the sales tax from you depending on the state. Here's the list of states we charge sales tax in ➡️ help.printful.com/hc/en-us/articles/360014009760-Which-states-does-Printful-charge-sales-tax-in-
I am in Georgia. Printful is going to charge me taxes for items sold in North Carolina and California because they are located there. I'm I to collect, report and pass that tax on to the those States or is that Printful's job to do. Because this video said that if I am ONLY Drop-shipping, I do not need to pay taxes in States where Printful is located.
Hi Bert Henry, If Printful has nexus in the state where the items are delivered to your customer, but your company does not, Printful could be responsible for collecting sales tax from your company. When Printful collects sales tax from you, they will remit and pass on to the states. So there is nothing for you to do here. We recommend that you check requirements or consult a sales tax professional, as this can vary by state. And you are correct, Printful’s print-on-demand drop shipping does not create nexus. So if you only use this service, it won’t impact your sales tax. However, if you use their warehouses and fulfillment, it will create physical nexus. Note that you will also need to understand where you have economic nexus, to determine if you are responsible for remitting sales tax in certain states. You can check out sales tax and economic nexus laws by state on our blog: blog.taxjar.com/economic-nexus-laws/ More on drop shipping with Printful and sales tax here: www.taxjar.com/printful-drop-shipping-sales-tax/ You you may want to get advice from a sales tax professional who can take a look at your drop shipping setup and provide a detailed nexus assessment, and give advice specific to your business. We have a list of vetted CPAs and sales tax consultants who have worked with our customers here: www.taxjar.com/sales-tax-accountant-directory/
I am in Iowa. I am creating an Etsy shop where I will sell shirts that I have designed, and Printful has made. Does Etsy collect my tax for me and take care of it all? I am so lost on what to do and where to start.
Hi Cassie and Family! First you’ll need to find out where you have nexus. (Nexus is a fancy way of referring to states where you have an obligation to pay sales tax. You can often get nexus from having a physical presence like a home-office or having employees or inventory stored in a particular state.) Since you use Printful, you may need to determine both where you have nexus and/or Printful has nexus as well. Note that: If you are using Printful’s warehouse and fulfillment service, then you will have nexus where your inventory is stored. If you are using Printful for print-on-demand drop shipping only does not create nexus for the seller. More on drop shipping with Printful and sales tax here: www.taxjar.com/printful-drop-shipping-sales-tax/ In some states, Etsy will collect and remit sales taxes for you, if you’re selling in a state that has marketplace facilitator laws. Here are the laws in Iowa: blog.taxjar.com/economic-nexus-iowa/ More on marketplaces here: blog.taxjar.com/marketplace-facilitator-explained/ If you sell outside of Etsy on other marketplaces, at festivals/craft fairs, or on your own site, then you may also obligation to collect tax on those non-etsy sales (pending where you have nexus). Finally, you may also want to get advice from a sales tax professional who can take a look at your drop shipping setup and provide a detailed nexus assessment. If so, we have a list of vetted CPAs and sales tax consultants who have worked with our customers here: www.taxjar.com/sales-tax-accountant-directory/
@@taxjar hey pls help me. Recently I set up my wish shop usinf printful and I did all steps but one thing was remaining and that was set up taxes and they are asking for location so what should I give and is it a problem if I don't fill it.
Q1. Let's say you hit 100 transactions in a particular state where this would give you economic nexus. You now collect and remit sales tax on transaction 101, 102 on so on. Correct? This would be difficult to time correctly. I'm guessing we should start to register before we hit 100 transactions. Q2. Is it true some states require international sellers to have a US bank account to register & remit sales tax? If so, do Taxjar offer a solution for this? Many thanks. Great video
Hi Joe, This is a great question! You definitely want to be registered in states where you will have nexus, so you can be ready to collect sales tax. If you do this too soon, however, the states may require you to file zero returns - adding yet another task to your to-do list. We provide some recommendations in this blog post on when to register for a license: blog.taxjar.com/when-register-sales-tax-license/ You may also find the economic nexus laws by state helpful, so you can see in which states you may be approaching the thresholds: blog.taxjar.com/economic-nexus-laws/ It’s also important to note that once you reach nexus in a certain state, you are responsible for collecting and remitting sales tax each filing period moving forward. On your second question: We wrote two blog posts on this exact topic that will help you better understand what you need to do for sales tax in the US: 1) Do International Sellers Have to Deal with Sales Tax in the U.S.? blog.taxjar.com/international-sellers-deal-sales-tax-u-s/ 2) What International Sellers Need to Know About Sales Tax in the U.S. blog.taxjar.com/sales-tax-for-international-business/
Reminds me of this Monty Python sketch so confusing and ridiculous! Setting: Humphrey is a teacher in front of a class full of boys at a private school. HUMPHREY: All right, settle down. Settle down. Now, before I begin the lesson, will those of you who are playing in the match this afternoon move your clothes down onto the lower peg immediately after lunch, before you write your letter home, if you're not getting your hair cut, unless you've got a younger brother who is going out this weekend as the guest of another boy, in which case, collect his note before lunch, put it in your letter after you've had your hair cut, and make sure he moves your clothes down onto the lower peg for you. Now,-- WYMER: Sir? HUMPHREY: Yes, Wymer? WYMER: My younger brother's going out with Dibble this weekend, sir, but I'm not having my hair cut today, sir. PUPILS: [chuckling] WYMER: So, do I move my clothes down, or-- HUMPHREY: I do wish you'd listen, Wymer. It's perfectly simple. If you're not getting your hair cut, you don't have to move your brother's clothes down to the lower peg. You simply collect his note before lunch, after you've done your scripture prep, when you've written your letter home, before rest, move your own clothes onto the lower peg, greet the visitors, and report to Mr. Viney that you've had your chit signed.
Hey, Gary, thanks for your feedback and for the example. It might seem confusing at first, but once you get into it, it's not that difficult. If you have any questions or concerns about sales tax, feel free to reach out to our support team. The email is support@printful.com, but live chat on our website is also an option.
Hey, it's true-understanding tax in detail may indeed sometimes be quite confusing and challenging. If you have any specific questions, please don't hesitate to reach out to our Customer Support by support@printful.com-we'll have a look and do our best to help.
it is confusing because they dunno how to collect these fuc** sales taxes on our outcome :)))) I am Italian living in France reporting in France on a dropshipping in the USA....... confused is not enough ....... if I can choose, I would choose to get lost in Delaware ..........or they should create a guichet unique like Europe is doing from July 2021 to make it simple and collect at the same place and time....
Like someone else said, this is so confusing even though it's a good video. I'm in Canada (a newbie to all this) and have made a few sales to buyers in the U.S. and in Canada. I've set the tax rates for each of our provinces in the Etsy platform. But I don't see any taxes being charged by Printful on any of my orders. I seriously doubt I'd make anywhere near the $100K threshold which, I understand, plays a role. What do I need to do? I'm at a loss!
The best advice would be to consult a tax specialist that could provide information relevant to your case. Tax is a difficult subject and it's beneficial to work with a professional when it comes to it.
So, I live in Ohio and plan to do print on demand. Does that mean I only need a sellers license for Ohio? If anyone could help me understand I would be very grateful :)
Wow, this is so complicated, and you make it sound easy and i see so many questions below very little answers. I live in isarel and i am planing doing it through woocomerce. If you guys are already base in the US, why don't you collect the taxes already there and give directly to your own govermen. why foreigners have to deal with your own internal burocracy? Does Woocomerce collect the taxes for foreigners?
Printful charges sales tax in 37 states. The tax rate is different in each state, and within each state, it varies by county, city, and district. You can learn more about that and other sales tax related questions over here ➡️ help.printful.com/hc/en-us/sections/360004088900-Sales-Tax We also suggest consulting a tax specialist as it varies case by case.
So I have a registered sole proprietorship based in Germany that uses Printful’s print and drop-shipping services both in Europe and the US but without a stored inventory at their warehouses. I use Shopify as a marketplace. What rules apply in my case?
Who am I if I am a dropshipper? 1) Taxpayer 2) Tax deductor 3)Tax collector ( e-commerce) 4) Nonresident taxable person Tell the answer this is for indians
Hey! Taxes depend on where is the order shipped to, and the way taxes would be charged from you would depend on the documentation you have/haven't submitted to us. If you have some questions on when we charge tax, feel free to send us a message at support@printful.com. If you'd like to know if you should charge tax, it's always best to reach out to a tax professional.
@@PrintfulCustomPrinting will there be any chances to get suspended by Amazon for integrating with printful to sell on Amazon, if printful doesn't deliver the order on time to customer ??
Hello, I'm starting my ecommerce print on demand business and I've only registered for sales taxes only in Florida since that's where I live. I've made no online sales yet. Do I need to register for every state to obtain a resales certificate before I launch my website? I'm worried that if I make a sale online and I don't charge tax, later down the line when I do hit the economic threshold for that state I will owe money. If I don't need to worry about that now, when should I worry about it?
Hey! When it comes to understanding your tax obligations, it's always better to get in touch with a tax consultant. Here are some resources that you can explore as well - help.printful.com/hc/en-us/sections/360004088900-Sales-tax. 😊
When I linked my wix account to printful, I had an option to how much sales tax I wanted to collect. I entered the wrong amount and would like to change. How do I do that? Thanks
Hey, could you please reach out to our Customer Support by chat or support@printful.com with more details regarding this? We'll have a look and try to advise 😊
So if I understood well, if i don't have a physical shop and might be an international dropshipper, I have to obviously charge Sales Tax to customers (add to the retail price) based on their state/country so that Printful will collect the tax. Is that right ??
Hi, Charles! 😊 Your sales tax obligations as an online retailer vary from state to state, so it's best to consult with a tax specialist. You can check out this blog article right here, perhaps it provides more clarity - www.printful.com/blog/beginners-guide-to-drop-shipping-sales-tax/.
Hey, Lisa, we understand it's a pretty steep learning curve. Take your time and feel free to contact our Customer Support via support@printful.com or website chat if needed. We also suggest consulting a tax specialist.
Hello, thanks for the brief video! My question is, if I'm using Printful's drop shipping services in the US, do I have to collect sales tax from every state that Printful has nexus in? I already have my business' home state's tax percentages and collect sales tax on eligible items there, but do I have to add all the other states even though I'm way under the threshold of $100,000 in sales?
Hey! This video explains when we are charging you for the sales tax, however, we suggest consulting a tax specialist to learn about your obligations. You can also learn more about this topic from this blog article ➡️ www.printful.com/blog/beginners-guide-to-drop-shipping-sales-tax/#Tax_obligations_for_drop_shippers As well as from our FAQs on Sales Tax ➡️ help.printful.com/hc/en-us/sections/360004088900-Sales-Tax
@@PrintfulCustomPrinting Hello! Thank you for the prompt response and the links that you have provided. I took a look at those articles and some others that I found online. It seems like I am already being charged sales tax whenever someone out of my state who is also in a state where Printful has nexus buys an item from my online store. However, I see that the sales tax I have to pay to Printful is a percentage of (Printful's fulfilment price+shipping cost) rather than my retail price. I checked this from the invoices section on Printful's dashboard. This looks like a loophole in the taxation system, because if someone from my home state purchases the same taxable item, they pay the sales tax over the end price which includes our profit. At this point, Printful is charging me sales tax as if I am the customer in the state where Printful has a nexus. And this means I am reselling something that I buy from Printful without charging my customer any sales tax since an item cannot be taxed twice. But when I add a design to a t-shirt, I add value to the item and my added value doesn't get taxed in this case. These tax rules don't make any sense but I guess it's best that I don't have to deal with each one of those 38 state's sales tax forms and their respective deadlines. Maybe I should up my prices a bit since Printful charges me sales tax where in actually it's the end buyer's duty to pay those taxes.
Thanks for sharing these details with us. If you need any assistance or more info about the way Printful charges taxes, please get in touch with our Customer Support team via the website chat or by emailing us at support@printful.com
@@PrintfulCustomPrinting Thank you, Printful for always being so responsive and as helpful as you can be. I will definitely get in touch with customer support should I feel stuck again. Have a nice day and be safe!
I’m still freaking out so if I’m in Texas I only need to collect taxes in Texas. Since I only have one nexus. So any one buying from my online website that’s outside of Texas I don’t need taxes from them? I have had a few out of state sales and I just notice they weren’t charge taxes will this come out of my pocket ? Please let me know.
Hey, thanks for reaching out! You can find a list of taxes where we're charging the sales tax over here ➡️ help.printful.com/hc/en-us/articles/360014009760-Which-states-does-Printful-charge-sales-tax-in- However, keep in mind that it's best to consult a CPA or tax specialist to fully understand your tax obligations.
@@PrintfulCustomPrinting Yeah all good I asked just after the 3hr mark. It still said posted 3 hours ago but thought I would give it crack - thanks for replying - good video by the way!
I live in India and am planning to sell clothing on etsy. The funds will be collected through paypal. So does etsy collect the sales tax for me ? And will printful charge me any sales tax if its already collectes on etsy ??
Hey Atharva, Etsy may charge you sales tax and in these cases, we won't charge you the sales tax. You can learn more here: www.printful.com/faq/taxes-and-billing/sales-tax/what-if-a-marketplace-charges-tax-
@@rahulmane1449 Yes I started it. Etsy and Printful collects sales tax when the delivery address are of some specific states. So I will recommend you increase your shipping cost or include that cost in your product listing itself.
@@rahulmane1449 Yes, but my advise would be join any etsy printful Facebook groups. There you can ask as many questions as you want and many people will help you.
Please help me, I am living in the Philippines but would like to sell my products (From Printful) to U.S and CANADA. Do I need to do anything in the setting or just leave it as it is? For me the only option which says (Collecting) is my country.
Hi there, we realized that we might not understood your question completely. Could you please get in touch with our Customer Support team and provide us with more details? :)
Hi, for tax-related questions our best advice would be to always consult a tax specialist, especially if your business is expanding. In addition, you can start your research from here > help.printful.com/.../sect.../360004088900-Sales-Tax ;It's a whole section of FAQ about Sales Tax that could be helpful to you:)
i am currently resinding in australia. the taxes rate are 3.49 and the shipping price is $9.91 per t-shirt.. why is it so high????????? firstly you explain dropshipping as if it is so easy to use and earn money.. i know it isn;t but the taxes and shipping are so high here... won't recommend
We're sorry to hear this. Our standard shipping rates for t-shirts and to Australia are $6.99 for the first product and $1.25 for additional ones. You can read more about it here > www.printful.com/shipping If you have any questions regarding the shipping rates, please feel free to reach out to our Customer Support by website chat or support@printful.com and we'll try to advise.
You should consult a professional with any tax-related questions. Here's our Taxes and Billing Help Center page that you might find useful: help.printful.com/hc/en-us/categories/360002570579-Taxes-and-Billing
Ok, that seems fine to me. Couple of questions to clarify. Which states does Printful have Nexus in.? If I'm an international seller - UK based - the only time I will have nexus and a US tax liability is in states where Printful doesn't have nexus and where I have in excess of $100k sales. In that case I need to pay sales tax collected to the US/State? government. Is that correct? Also, in relation to EU sales where VAT is due, does Printful charge me VAT, or do I need to VAT register and collect that myself.
Hi there, you should consult a professional with any tax-related questions but you may also find our taxes FAQ page useful: www.printful.com/faq/taxes-and-billing Feel free to contact us via our website chat or by email (support@printful.com) if you need any assistance.
Most business, especially small business, haven't quite accepted that they need to build an audience FIRST. They can scale this up quickly with FB and IG advertising and then retargeting the audience, that engaged with the ad but the truth is, most ads are ineffective. It's been a tough year for small business and they will either have to hire a digital marketer or learn it themselves. Adapt or die.
Thank you for this tax video. I apologize, however I have a more basic question. How do you select a business name that sounds like you should need to pay taxes. (In other words, you successfully sold something. LOL)
It's hilarious how they're so happy and chirpy, as if this was simple and straightforward. It's not.
It’s complicated cuz it’s dealing with legalities and such🥴
Omg. Lol Tell Me About It 🙄🤣
I justed... wanted to sell... bandshirts... what am I getting myself into
So one of my most important questions was answered in this video--if you're using Printful's print-on-demand services, their locations don't give you nexus (but if you use Printful's Warehousing and Fulfillment services, then you have nexus where your inventory is being stored). So since I only have nexus in one state, I only have to worry about charging sales tax in my state, until I reach the threshold for Economic nexus in other states. However, Printful is still going to charge ME sales tax for each of my customers' orders based on the state the customer is in and the states where Printful has nexus.
I was thinking that means that in my Shopify store, I should charge sales tax for each of the states that Printful has nexus in, since Printful will be charging ME that sales tax on behalf of my customers' orders. Would that be correct? Or am I actually not allowed to charge sales tax (or at least label it that way) for customers in states where I don't have nexus and therefore don't have a Sales Tax Permit? (Because Printful will be the one collecting the sales tax from ME on behalf of my customers and therefore Printful will be the one to remit it.) Does this mean I should raise the prices of my products in order to account for this?
Video went live over an hour ago and they said their tax expert would reply in the comments for the remaining 3 hours- not one response yet. Smh
@@Faustvonholle Hi there! We're having some issues with TH-cam marking the reply comments as spam and not displaying them. We're working on getting the replies to you!
Hi there,
Thanks for the question! If Printful has nexus, but you do not, then you do not charge sales tax to your customers. Printful would charge your company sales tax in this instance, unless you provide them with a resale certificate.
Even though you've already paid sales tax on items you're selling, as a seller, you should only collect sales tax on taxable items you sell to customers in states where you have nexus and have registered for a license. The taxes you paid when you purchased the item have no bearing on this.
However, if you have a sales tax license and you're trying to recover sales taxes you previously paid on items for resale, we have tips to do this in the blog post here: blog.taxjar.com/resellers-how-to-recover-sales-taxes-charged-by-vendors/
More on drop shipping with Printful and sales tax here: www.taxjar.com/printful-drop-shipping-sales-tax/
Keep in mind that sales tax rules vary by state, and because we're not sales tax consultants, we're not able to offer specific advice or guidance for your particular scenario.
You you may want to get advice from a sales tax professional who can take a look at your drop shipping setup and provide a detailed nexus assessment. We have a list of vetted CPAs and sales tax consultants who have worked with our customers here: www.taxjar.com/sales-tax-accountant-directory/
@@taxjar Thank you for the links and explanation! The TaxJar blog about recovering sales tax helped clear things up a bit. It's frustrating that I will basically have to eat the cost of sales tax for those other states, but at least that makes sense.
@@TheDollFairy Glad to hear that we helped clear things up. We do also recommend consulting with a tax professional on how best to recover some of these costs, as TaxJar is unable to provide legal advice. Best of luck!
This is so fcked up. The entire pitch to build a print on demand business is that it's a fairly passive model, now if I sell more than 200 products per state I have to start tax relationships with each state!? I live in Europe ffs.This is a huge issue that should be mentioned BEFORE you spend months building a POD business.
no, it's when you sell to someone living in that state while your company is located in it. It's the same in Europe, if you sell enough in one country you should register for VAT there.
@@michelleh4717 it sounds opposite to my ears:) they say taxes depend on customers location vs Europe it's origin location under the treshold. above the treshold yes mam you register for VAT there........
@@parisiansparkle yes it's what i said
So how do you sell in US do you collect taxes I know you pay tax if you are within the state of the customer but what if you're outside the us and printful needs nexus tax... I don't know it's really fucked up it's better to pay an expert to deal with all of this shit rather your brain smoke out...
I know it's been over a year ago since your post, but have you figured out how to build a POD business in the US as a European? I'm in the same situation right now :D
This is confusing, but helpful. I wish i knew the information when I signed up with Printful in the beginning instead of stumbling upon it.
Thank you for your feedback and we're sorry to hear that you didn't find this video any sooner. We try to provide our customers with helpful and inspiring content across different online platforms, and in addition to our TH-cam channel, you can also have a look at our blog here > www.printful.com/blog/ There we publish articles on different relevant topics on regular basis-hopefully, some of them also help you out 😊
Even the IRS is like: “we made these rules? We are confused”
Screw it all. I guess the IRS can just throw me in jail if they like. This is way too complicated to understand.
We understand how difficult it might be, but don't give up! Consider outsourcing a professional to help you with this.
why it's so confusing ? I am from europe, i want to start my own prinftul store using woocomerce and i cant because of this tax thing it's so confusing...
It can certainly be confusing and overwhelming at first. You can search for more information in our FAQ on Taxes and Billing here: help.printful.com/hc/en-us/categories/360002570579-Taxes-and-Billing And in cases like this, we always strongly suggest our customers to consult with a tax specialist.
I just saw the blog regarding my state’s sales tax (California). I says that I would have to register with the CDTFA if i exceeded $500,000. Does that mean if I am under that (doubtful I will reach that right away), that I would still have to file?
What’s best way to automate Shopify so tax is charged correctly?
Have you found the answer to this question yet?
hello hello .. so at the end after my calculations of net profit per tees (5-7$) BEFORE taxes (x2)from etsy and printful .. and maybe spome governement taxes also.. do you really make profit at the end as a dropship store on netsy ! ? ;...
this is a good point; I am starting up a, e commerce for helping my book launch and create a movement ... 50% proceeds go to a noprofit... I am far from dropshipping for money !!!!!!!!!!!
So is this monthly?
if i don't charge taxes i get charged? what, I'm so confused.
I feel like you aren't really telling me HOW to collect and remit the taxes just throwing a lot of information at me.
We're sorry to hear that you didn't find the video helpful enough. You can find and read more about the sales tax in our FAQ here > help.printful.com/hc/en-us/sections/360004088900-Sales-Tax Additionally, if something remains unclear, we always advise our customers to consult with tax specialists just to be entirely on the safe side and make sure everything is in compliance with the respective law.
If anyone from printful is monitoring this, I have a question. I plan to use the print on demand service and NOT the warehousing aspect of printful. I plan to submit a resale certificate for where I have nexus. In the diagram at minute 8:50, it is indicated that I would still need to collect tax from the customer even if I don't have a nexus in the state because printful has a nexus. Is this the case for the print on demand service? Earlier in the video, it is said that if you are using the printful print on demand fulfillment, then that does not meet the nexus requirement.
We're legally obliged to charge sales tax in states where we have nexus unless you submit a resale certificate. Even if you don't have nexus, we might have to charge the sales tax from you depending on the state. Here's the list of states we charge sales tax in ➡️ help.printful.com/hc/en-us/articles/360014009760-Which-states-does-Printful-charge-sales-tax-in-
Sales & Use Tax is extremely straightforward ..... until it's not.
I am in Georgia. Printful is going to charge me taxes for items sold in North Carolina and California because they are located there. I'm I to collect, report and pass that tax on to the those States or is that Printful's job to do. Because this video said that if I am ONLY Drop-shipping, I do not need to pay taxes in States where Printful is located.
Hi Bert Henry,
If Printful has nexus in the state where the items are delivered to your customer, but your company does not, Printful could be responsible for collecting sales tax from your company. When Printful collects sales tax from you, they will remit and pass on to the states. So there is nothing for you to do here. We recommend that you check requirements or consult a sales tax professional, as this can vary by state.
And you are correct, Printful’s print-on-demand drop shipping does not create nexus. So if you only use this service, it won’t impact your sales tax. However, if you use their warehouses and fulfillment, it will create physical nexus.
Note that you will also need to understand where you have economic nexus, to determine if you are responsible for remitting sales tax in certain states. You can check out sales tax and economic nexus laws by state on our blog: blog.taxjar.com/economic-nexus-laws/
More on drop shipping with Printful and sales tax here: www.taxjar.com/printful-drop-shipping-sales-tax/
You you may want to get advice from a sales tax professional who can take a look at your drop shipping setup and provide a detailed nexus assessment, and give advice specific to your business. We have a list of vetted CPAs and sales tax consultants who have worked with our customers here: www.taxjar.com/sales-tax-accountant-directory/
I am in Iowa. I am creating an Etsy shop where I will sell shirts that I have designed, and Printful has made. Does Etsy collect my tax for me and take care of it all? I am so lost on what to do and where to start.
Hi Cassie and Family!
First you’ll need to find out where you have nexus. (Nexus is a fancy way of referring to states where you have an obligation to pay sales tax. You can often get nexus from having a physical presence like a home-office or having employees or inventory stored in a particular state.) Since you use Printful, you may need to determine both where you have nexus and/or Printful has nexus as well.
Note that:
If you are using Printful’s warehouse and fulfillment service, then you will have nexus where your inventory is stored.
If you are using Printful for print-on-demand drop shipping only does not create nexus for the seller.
More on drop shipping with Printful and sales tax here: www.taxjar.com/printful-drop-shipping-sales-tax/
In some states, Etsy will collect and remit sales taxes for you, if you’re selling in a state that has marketplace facilitator laws.
Here are the laws in Iowa: blog.taxjar.com/economic-nexus-iowa/
More on marketplaces here: blog.taxjar.com/marketplace-facilitator-explained/
If you sell outside of Etsy on other marketplaces, at festivals/craft fairs, or on your own site, then you may also obligation to collect tax on those non-etsy sales (pending where you have nexus).
Finally, you may also want to get advice from a sales tax professional who can take a look at your drop shipping setup and provide a detailed nexus assessment.
If so, we have a list of vetted CPAs and sales tax consultants who have worked with our customers here: www.taxjar.com/sales-tax-accountant-directory/
@@taxjar hey pls help me. Recently I set up my wish shop usinf printful and I did all steps but one thing was remaining and that was set up taxes and they are asking for location so what should I give and is it a problem if I don't fill it.
Q1. Let's say you hit 100 transactions in a particular state where this would give you economic nexus.
You now collect and remit sales tax on transaction 101, 102 on so on. Correct? This would be difficult to time correctly. I'm guessing we should start to register before we hit 100 transactions.
Q2. Is it true some states require international sellers to have a US bank account to register & remit sales tax? If so, do Taxjar offer a solution for this?
Many thanks. Great video
Hi Joe,
This is a great question! You definitely want to be registered in states where you will have nexus, so you can be ready to collect sales tax. If you do this too soon, however, the states may require you to file zero returns - adding yet another task to your to-do list.
We provide some recommendations in this blog post on when to register for a license: blog.taxjar.com/when-register-sales-tax-license/
You may also find the economic nexus laws by state helpful, so you can see in which states you may be approaching the thresholds: blog.taxjar.com/economic-nexus-laws/
It’s also important to note that once you reach nexus in a certain state, you are responsible for collecting and remitting sales tax each filing period moving forward.
On your second question:
We wrote two blog posts on this exact topic that will help you better understand what you need to do for sales tax in the US:
1) Do International Sellers Have to Deal with Sales Tax in the U.S.? blog.taxjar.com/international-sellers-deal-sales-tax-u-s/
2) What International Sellers Need to Know About Sales Tax in the U.S. blog.taxjar.com/sales-tax-for-international-business/
If I knew about how complex this is, I would have never got into POD
Reminds me of this Monty Python sketch so confusing and ridiculous!
Setting: Humphrey is a teacher in front of a class full of boys at a private school.
HUMPHREY: All right, settle down. Settle down.
Now, before I begin the lesson, will those of you who are playing in the match this afternoon move your clothes down onto the lower peg immediately after lunch, before you write your letter home, if you're not getting your hair cut, unless you've got a younger brother who is going out this weekend as the guest of another boy, in which case, collect his note before lunch, put it in your letter after you've had your hair cut, and make sure he moves your clothes down onto the lower peg for you. Now,--
WYMER: Sir?
HUMPHREY: Yes, Wymer?
WYMER: My younger brother's going out with Dibble this weekend, sir, but I'm not having my hair cut today, sir.
PUPILS: [chuckling]
WYMER: So, do I move my clothes down, or--
HUMPHREY: I do wish you'd listen, Wymer. It's perfectly simple. If you're not getting your hair cut, you don't have to move your brother's clothes down to the lower peg. You simply collect his note before lunch, after you've done your scripture prep, when you've written your letter home, before rest, move your own clothes onto the lower peg, greet the visitors, and report to Mr. Viney that you've had your chit signed.
Hey, Gary, thanks for your feedback and for the example. It might seem confusing at first, but once you get into it, it's not that difficult. If you have any questions or concerns about sales tax, feel free to reach out to our support team. The email is support@printful.com, but live chat on our website is also an option.
th-cam.com/video/MFYgiRYHic0/w-d-xo.html
So as a dropshipper should i collect taxes when selling products ??
If you have physical or economic nexus, yes. At least from my understanding
This is so confusing...
Hey, it's true-understanding tax in detail may indeed sometimes be quite confusing and challenging. If you have any specific questions, please don't hesitate to reach out to our Customer Support by support@printful.com-we'll have a look and do our best to help.
it is confusing because they dunno how to collect these fuc** sales taxes on our outcome :)))) I am Italian living in France reporting in France on a dropshipping in the USA....... confused is not enough ....... if I can choose, I would choose to get lost in Delaware ..........or they should create a guichet unique like Europe is doing from July 2021 to make it simple and collect at the same place and time....
Like someone else said, this is so confusing even though it's a good video. I'm in Canada (a newbie to all this) and have made a few sales to buyers in the U.S. and in Canada. I've set the tax rates for each of our provinces in the Etsy platform. But I don't see any taxes being charged by Printful on any of my orders. I seriously doubt I'd make anywhere near the $100K threshold which, I understand, plays a role. What do I need to do? I'm at a loss!
The best advice would be to consult a tax specialist that could provide information relevant to your case. Tax is a difficult subject and it's beneficial to work with a professional when it comes to it.
@@PrintfulCustomPrinting I talked to a tax expert and they don't know either.
So, I live in Ohio and plan to do print on demand. Does that mean I only need a sellers license for Ohio? If anyone could help me understand I would be very grateful :)
Awesome video, very informative
Wow, this is so complicated, and you make it sound easy and i see so many questions below very little answers. I live in isarel and i am planing doing it through woocomerce. If you guys are already base in the US, why don't you collect the taxes already there and give directly to your own govermen. why foreigners have to deal with your own internal burocracy? Does Woocomerce collect the taxes for foreigners?
Printful charges sales tax in 37 states. The tax rate is different in each state, and within each state, it varies by county, city, and district. You can learn more about that and other sales tax related questions over here ➡️ help.printful.com/hc/en-us/sections/360004088900-Sales-Tax
We also suggest consulting a tax specialist as it varies case by case.
So I have a registered sole proprietorship based in Germany that uses Printful’s print and drop-shipping services both in Europe and the US but without a stored inventory at their warehouses. I use Shopify as a marketplace. What rules apply in my case?
Who am I if I am a dropshipper?
1) Taxpayer
2) Tax deductor
3)Tax collector ( e-commerce)
4) Nonresident taxable person
Tell the answer this is for indians
Hey! Taxes depend on where is the order shipped to, and the way taxes would be charged from you would depend on the documentation you have/haven't submitted to us. If you have some questions on when we charge tax, feel free to send us a message at support@printful.com. If you'd like to know if you should charge tax, it's always best to reach out to a tax professional.
@@PrintfulCustomPrinting will there be any chances to get suspended by Amazon for integrating with printful to sell on Amazon, if printful doesn't deliver the order on time to customer ??
Hello, I'm starting my ecommerce print on demand business and I've only registered for sales taxes only in Florida since that's where I live. I've made no online sales yet. Do I need to register for every state to obtain a resales certificate before I launch my website? I'm worried that if I make a sale online and I don't charge tax, later down the line when I do hit the economic threshold for that state I will owe money. If I don't need to worry about that now, when should I worry about it?
Hey! When it comes to understanding your tax obligations, it's always better to get in touch with a tax consultant. Here are some resources that you can explore as well - help.printful.com/hc/en-us/sections/360004088900-Sales-tax. 😊
When I linked my wix account to printful, I had an option to how much sales tax I wanted to collect. I entered the wrong amount and would like to change. How do I do that? Thanks
Hey, could you please reach out to our Customer Support by chat or support@printful.com with more details regarding this? We'll have a look and try to advise 😊
So if I understood well, if i don't have a physical shop and might be an international dropshipper, I have to obviously charge Sales Tax to customers (add to the retail price) based on their state/country so that Printful will collect the tax. Is that right ??
Hi, Charles! 😊 Your sales tax obligations as an online retailer vary from state to state, so it's best to consult with a tax specialist. You can check out this blog article right here, perhaps it provides more clarity - www.printful.com/blog/beginners-guide-to-drop-shipping-sales-tax/.
I absolutely don't understand. I'm gonna have to watch this explanation a few times.
Hey, Lisa, we understand it's a pretty steep learning curve. Take your time and feel free to contact our Customer Support via support@printful.com or website chat if needed. We also suggest consulting a tax specialist.
Hello, thanks for the brief video! My question is, if I'm using Printful's drop shipping services in the US, do I have to collect sales tax from every state that Printful has nexus in? I already have my business' home state's tax percentages and collect sales tax on eligible items there, but do I have to add all the other states even though I'm way under the threshold of $100,000 in sales?
Hey! This video explains when we are charging you for the sales tax, however, we suggest consulting a tax specialist to learn about your obligations.
You can also learn more about this topic from this blog article ➡️ www.printful.com/blog/beginners-guide-to-drop-shipping-sales-tax/#Tax_obligations_for_drop_shippers
As well as from our FAQs on Sales Tax ➡️ help.printful.com/hc/en-us/sections/360004088900-Sales-Tax
@@PrintfulCustomPrinting Hello! Thank you for the prompt response and the links that you have provided. I took a look at those articles and some others that I found online. It seems like I am already being charged sales tax whenever someone out of my state who is also in a state where Printful has nexus buys an item from my online store. However, I see that the sales tax I have to pay to Printful is a percentage of (Printful's fulfilment price+shipping cost) rather than my retail price. I checked this from the invoices section on Printful's dashboard. This looks like a loophole in the taxation system, because if someone from my home state purchases the same taxable item, they pay the sales tax over the end price which includes our profit. At this point, Printful is charging me sales tax as if I am the customer in the state where Printful has a nexus. And this means I am reselling something that I buy from Printful without charging my customer any sales tax since an item cannot be taxed twice. But when I add a design to a t-shirt, I add value to the item and my added value doesn't get taxed in this case. These tax rules don't make any sense but I guess it's best that I don't have to deal with each one of those 38 state's sales tax forms and their respective deadlines. Maybe I should up my prices a bit since Printful charges me sales tax where in actually it's the end buyer's duty to pay those taxes.
Thanks for sharing these details with us. If you need any assistance or more info about the way Printful charges taxes, please get in touch with our Customer Support team via the website chat or by emailing us at support@printful.com
@@PrintfulCustomPrinting Thank you, Printful for always being so responsive and as helpful as you can be. I will definitely get in touch with customer support should I feel stuck again. Have a nice day and be safe!
Great info, Amy Schumer. Thanks.
I’m still freaking out so if I’m in Texas I only need to collect taxes in Texas. Since I only have one nexus. So any one buying from my online website that’s outside of Texas I don’t need taxes from them? I have had a few out of state sales and I just notice they weren’t charge taxes will this come out of my pocket ? Please let me know.
Hey, thanks for reaching out! You can find a list of taxes where we're charging the sales tax over here ➡️ help.printful.com/hc/en-us/articles/360014009760-Which-states-does-Printful-charge-sales-tax-in-
However, keep in mind that it's best to consult a CPA or tax specialist to fully understand your tax obligations.
What about switzerland and europe ?
I order some samples from Printful and pay taxes on them.
Hey, TaxJar isn't replying to comments anymore. You'll need to contact a professional with any tax-related questions. :)
Does your website hosting location create nexus for you. I.e. if your website is hosted in Iowa. Do you now have Nexus in Iowa?
Hey, TaxJar isn't replying to comments anymore. You'll need to contact a professional with any tax-related questions. :)
@@PrintfulCustomPrinting Yeah all good I asked just after the 3hr mark. It still said posted 3 hours ago but thought I would give it crack - thanks for replying - good video by the way!
I live in India and am planning to sell clothing on etsy. The funds will be collected through paypal.
So does etsy collect the sales tax for me ? And will printful charge me any sales tax if its already collectes on etsy ??
Hey Atharva, Etsy may charge you sales tax and in these cases, we won't charge you the sales tax. You can learn more here: www.printful.com/faq/taxes-and-billing/sales-tax/what-if-a-marketplace-charges-tax-
Have you started it?
@@rahulmane1449 Yes I started it. Etsy and Printful collects sales tax when the delivery address are of some specific states. So I will recommend you increase your shipping cost or include that cost in your product listing itself.
@@atharvajoshi6012 I'm going to start it, i have queries can i ask
@@rahulmane1449 Yes, but my advise would be join any etsy printful Facebook groups. There you can ask as many questions as you want and many people will help you.
Please help me, I am living in the Philippines but would like to sell my products (From Printful) to U.S and CANADA.
Do I need to do anything in the setting or just leave it as it is?
For me the only option which says (Collecting) is my country.
Hi, yes you can leave it as it is and and sell to U.S and Canada!
Hi there, we realized that we might not understood your question completely. Could you please get in touch with our Customer Support team and provide us with more details? :)
I'm located in Europe what should I do...? I hate taxes 🤬😡
Hi, for tax-related questions our best advice would be to always consult a tax specialist, especially if your business is expanding. In addition, you can start your research from here > help.printful.com/.../sect.../360004088900-Sales-Tax ;It's a whole section of FAQ about Sales Tax that could be helpful to you:)
i am currently resinding in australia. the taxes rate are 3.49 and the shipping price is $9.91 per t-shirt.. why is it so high????????? firstly you explain dropshipping as if it is so easy to use and earn money.. i know it isn;t but the taxes and shipping are so high here... won't recommend
We're sorry to hear this. Our standard shipping rates for t-shirts and to Australia are $6.99 for the first product and $1.25 for additional ones. You can read more about it here > www.printful.com/shipping If you have any questions regarding the shipping rates, please feel free to reach out to our Customer Support by website chat or support@printful.com and we'll try to advise.
@@PrintfulCustomPrinting shippings are considerable but what about the taxes? $3.49 for a $24.99 tshirt??
You should consult a professional with any tax-related questions. Here's our Taxes and Billing Help Center page that you might find useful: help.printful.com/hc/en-us/categories/360002570579-Taxes-and-Billing
Ok, that seems fine to me. Couple of questions to clarify. Which states does Printful have Nexus in.? If I'm an international seller - UK based - the only time I will have nexus and a US tax liability is in states where Printful doesn't have nexus and where I have in excess of $100k sales. In that case I need to pay sales tax collected to the US/State? government. Is that correct? Also, in relation to EU sales where VAT is due, does Printful charge me VAT, or do I need to VAT register and collect that myself.
Hi there, you should consult a professional with any tax-related questions but you may also find our taxes FAQ page useful: www.printful.com/faq/taxes-and-billing
Feel free to contact us via our website chat or by email (support@printful.com) if you need any assistance.
Most business, especially small business, haven't quite accepted that they need to build an audience FIRST. They can scale this up quickly with FB and IG advertising and then retargeting the audience, that engaged with the ad but the truth is, most ads are ineffective. It's been a tough year for small business and they will either have to hire a digital marketer or learn it themselves. Adapt or die.
Still so confusing
Thank you for this tax video. I apologize, however I have a more basic question. How do you select a business name that sounds like you should need to pay taxes. (In other words, you successfully sold something. LOL)
Hey Sonja, not sure if we can help you with this. It's up to you what business name you choose. :)
Tax Jar cost money :(