USA Sales Tax?

cweir1969

Hello,

I'm a USA Seller and am new to Brick Owl. Most of the sites I sell on automatically collect US Sales Tax on each order. Does Brick Owl do this as well or do I have to set it up and pay it myself?

Thanks,
Chris

HeartlandBrix

Hi, cweir1969. Welcome to BrickOwl!

Yes, sales taxes are something you'll have to set up yourself. I have a feeling you're already aware of your state's tax laws, so you'll need to go here to set your tax rates up for your store: My Store\Settings\Tax. US sales taxes are set up by USPS zip code. You can either set up a tax rate for only one zip code, or have the same tax rate across multiple sequentially-numbered zip codes.

Note: Multiple tax rates for the same zip code are combined, so if every zip code between 11111 - 11199 is 8%, except 11150 is 10%, you could create two tax profiles: one profile for 11111 - 11199 at 8 %, and a second for only 11150 at 2% (8% for the range + 2% for 11150 only = 10%). You could create three separate profiles, instead: one for 11111 - 11149 at 8%, 11150 by itself at 10% and 11151 - 11199 at 8%. Hopefully that isn't too confusing!

Calibrick

And keep in mind the newer internet sales laws (which sadly vary by state!) where if you sell X NUMBER of orders OR X $ in orders, you may have to collect and submit taxes to states outside of your own. For what it's worth, I've never hit that in my small-to-medium store (though I came close one year to hitting the 200 order max for Texas).

Colorado Bricks

Also some states have specific fees, for example, since 7/1/2022 every order shipped to Colorado have to collect an extra 27c if the order is delivered by a vehicle. However if your order is delivered by foot or other means that do not produce Co2, there is no charge... how can small sellers keep track of all these....

Calibrick

Wow, I had NO idea about the new CO rule! What if it's combo, e.g., USPS (which I use exclusively)? They drive a truck to get to a block, but then deliver on foot...?? :-)

Colorado Bricks

@Calibrick, still taxed. You can read more there https://tax.colorado.gov/retail-delivery-fee
But this is a new level of @#$#&;^@...

Calibrick

In reading this, it appears that "If every item in a retail sale is exempt from sales tax, the delivery is also exempt from the retail delivery fee. However, if one or more items in the transaction is subject to sales tax, the retail delivery fee is due. Each sale for delivery is considered a single “retail delivery” regardless of how many shipments are needed to deliver the items purchased."

So for out of state sellers, the fee is N/A unless you hit Colorado's sales minimum for an out-of-state seller to collect sales tax. In-state sellers though... OUCH. The page also "demands" invoices in-state show the fee as a separate line, specifically marked.

That's just silly (and generates a lot of paperwork!).

Colorado Bricks

Yes, last I checked, Lego and BL are out of compliance.
As far as I know, only amazon does it right.

Calibrick

I'm sure this was meant to target Amazon, Grubhub, Uber-Eats, etc... it's a shame they are expecting it of small business though, truly. :-(