The June 2018 United States Supreme Court decision in South Dakota vs. Wayfair led to a change in sales tax law for online commerce, including online marketplaces like TpT.
TpT provides access to tools that enable our Sellers to calculate and collect sales tax based on their business needs. TpT also calculates and collects tax directly in certain states that have enacted laws that place the sales tax responsibility on marketplaces like TpT. You may see sales tax at checkout for applicable purchases. Because sales tax requirements vary state by state, it is possible that some of the items in your order may be taxed, while others may not be. Where sales tax is applied, you’ll see an estimated sales tax amount displayed on the checkout page based on your postal code.
1. When will I be charged tax and how much?
Sales tax will be calculated and collected for applicable items based on the product type, and applicable state and local guidelines. You may see an "estimated taxes" line in your order summary during checkout determined by your postal code. If your order qualifies for a tax exemption, please contact us at Exemptions@TeachersPayTeachers.com.
Special notice on Alabama: TpT has been approved by the state of Alabama to collect the Simplified Sellers Use Tax on taxable transactions delivered into Alabama. This enables TpT to collect a flat 8% sales tax on all taxable transactions made into Alabama. TpT’s program account number is SSU-R010098736. Learn more about the Simplified Sellers Use Tax Remittance Program under Rule 810-6-2-.90.02 on Alabama’s website.
2. Will I see the sales tax broken out in my receipt?
Yes. Once your order is complete, you’ll see the taxes collected on your order confirmation page. Additionally, when you click "Printable Receipt," you’ll now see the sales tax on its own line in addition to the total amount paid.
3. Will sales tax be charged for school purchases?
As of April 2019, sales tax is being charged on TpT for Schools purchases and purchase orders where applicable. If you’re purchasing from a TpT for Schools account or using a purchase order and have a valid tax exempt form, please contact us at Exemptions@TeachersPayTeachers.com.
4. I don’t live in the U.S. will sales tax be applied to my order?
Sales tax will only be charged when a Buyer is making a purchase from a jurisdiction with applicable U.S. sales tax rules. If you aren’t purchasing from jurisdictions that apply U.S. sales tax to your purchase, no tax will be calculated or collected. Please note, purchases made by U.S. Buyers from an international seller may have sales tax applied.
5. What if my order qualifies for a sales tax exemption?
If you have valid proof of tax exemption, please contact Exemptions@TeachersPayTeachers.com. Tax exemption applications take 5-10 business days to process. Once your application is processed, you can simply check a box at checkout to apply your exemption to each purchase (please note that this last step is required to ensure your exemption is applied to an order).