You didn't address the third location - Printful's location. What is the implication for me if I resell the products produced by printful in my Shopify store? If printful has a fulfillment center in say, California, does it establish "economic nexus" for me in California? Do I need to register as a business in California even though I live in a different state?
I am a US seller with physical nexus in the state of Iowa. I plan on submitting a sales tax permit to Printful. On my woocommerce store, would I only charge tax to customers in Iowa when they buy a Printify tshirt, and then I have to remit that tax to Iowa? In the meantime, any sales made outside of the state of Iowa, does Printful remit it and I don't have to worry about it? I've spent 6 hours researching this and can't get a straight answer from anyone. I am confused because I came across a statement that says that Printful doesn't remit tax on behalf of the seller. I understand that there is some obligation by Printful due to their own nexus status in states. I suggest you use scenarios in your videos, that would be really helpful. Such as "Tom owns a website in Idaho where he lives, and he sells tshirts" This storytelling angle is easier to absorb.
this video was very helpful, but I am still confused about sale taxes. I am from UAE (United Arab Emirates) and registered my Shopify account from there. Integrated the account with Printful, and selling only in the USA market. Which rules are applicable in this case?
Hi Susan! Your specific situation depends on your country of tax residence, taxpayer status, where you sell, etc. It’s always best to consult a certified tax specialist if any questions arise!
If I live in Germany (EU) and a customer buys from the USA and Printful ships the item from USA Printful Location to the customer..Will this count as I live in the USA, just because Printful fulfilled the product in the USA?
Hi there! This won't count as you living in the US. You might have to register as a taxpayer in a US state if your sales reach a certain threshold. I suggest you read more on this in the sales tax guide and the article about Nexus I've linked in the description from Tax Jar. We won't be able to comment on the specifics of your business, it's always best to find a certified professional's advice.
You say Printful will charge sales tax and/or VAT if we have not registered yet. They will collect it? What do they do with it once they have collected it? Are they holding that money or are they paying it for me? If so, why would I bother registering if they are doing the payments for me? Thanks
Hey! We're required to charge VAT on our behalf, however, this tax charge doesn't replace the taxes that you might be required to charge on your store's side. :)
Hey! We calculate sales tax depending on the order's delivery address. But to better understand your tax obligations, we suggest you to consult a tax advisor. 🙂
If I live in Germany, but sale to both USA and Europe, I know I have to pay taxes in Germany... but do I also have to pay some tax if a customer buys an item to be shipped to USA? and If so how? Because I dont live there and dont have any legal papers or anything to do with the US. You could offer a paid service to help with this, or build a site where you enter your situation and it tells you what you should do. Actually it could take the info from your shop.
Hi there! If you're not based in the US but sell to customers in the US, we will charge you the sales tax amount and remit it to the state. Whether you have to register as a taxpayer in the US as a business in this case might depend on the sales thresholds for your store in certain states. But I highly suggest you check out the TaxJar Sales Tax guide I've linked in the description for more info and definitely consult with a professional to get answers to more specific questions. We at Printful are experts in creating POD products and solutions, not certified tax specialists, so can't offer any specific advice, just general guidance. I hope the resources linked will help you further ☺🤞
