In 2018, the US Supreme Court issued a ruling that allowed states to begin collecting sales taxes from purchases made online. States have slowly been changing their laws so that they can collect this additional revenue, but the laws are very complicated and changing all the time.
How is the sales tax calculated?
Sales tax is mostly calculated based on the shipping address of the order. Rules about which states charge sales tax, what is taxable, and how much they collect vary widely. Some states collect one state-wide rate, while others collect hundreds of different local rates; some states tax apparel, others do not; some states only tax goods, others tax goods and shipping.
To make this process as simple as possible for you as a Seller, Bonfire will handle the calculations, collections, filing and remittance processes in states where Bonfire has determined that we meet that state’s requirements to do so. .
Who pays the sales tax?
Sales tax is charged to Buyers when they check out. This amount will never be deducted from your Campaign profits.
Who collects the sales tax?
As a Marketplace Facilitator, Bonfire will collect sales tax on your behalf and send it to the appropriate state(s) in accordance with their requirements.
Which states charge sales tax?
Because these laws are constantly changing, Bonfire will frequently revisit each state’s laws and requirements and update the states where we collect as a marketplace facilitator. At this point, providing a complete and constantly updated list of those states would be impractical. We will provide one here as soon as we can do so. .
If you'd like to get involved, you can write to your member of Congress and ask them to help by supporting a new bill that will protect business from these complicated new laws.
If you have questions, reach out to our Customer Success team. We’d be happy to help.