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US State Sales Tax and Exemption: FAQ

As part of our commitment to improve the shopping experience on Spoonflower.com, we are making updates to the checkout process. Please view the How do I upload my tax exempt status? section for screenshots and guidance on the updated procedure. If you have not re-uploaded your exemption information since before June 12, 2023, you will need to do so to continue to be considered exempt automatically with our new cart.

 

Why are you charging sales tax?

A Supreme Court ruling gave US States the authority to require e-commerce businesses to charge and collect sales tax on shipments into their state, even if the business does not have a physical location in that state. On November 15th, 2018 we began collecting sales tax for all states that require this remittance.

 

When is sales tax rendered on a purchase?

Sales tax is rendered on a purchase if the order contains items that are taxable in the state to which they are being shipped.

 

My state does not have sales tax. Do I have to upload anything?

Sales tax is determined by where the shipments are sent. If your shipments are sent to a state which does not charge sales tax, you do not need to upload any documentation. Sales tax will not be charged on those shipments.

 

What if I am exempt from sales tax in my state?

If you are exempt from sales tax in your state, you are welcome to upload your exemption status to your Spoonflower account as explained below. Correct documentation varies by state, and will allow us to bypass charging sales tax on your orders shipping to that state. Please note that exemption status will only apply to orders placed going forward; refunds may be made for sales tax paid on qualifying orders within the previous 30 days. See below for questions covering additional information.

 

How do I upload my tax exempt status?

First, login to your account and click on the user profile icon in the upper right hand corner. From there, click “Account Settings” and then the “Tax Info” tab. This will bring you to a page that is password protected.  

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After you enter your password, you will need to click the “Complete sales tax exemptions” button. 

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This will bring you to a page where you will complete two steps, as described below.

Step 1: Please provide the name you use on tax forms (personal or business name) followed by your address. Add any state tax regions in which you should be exempt from the drop down, you can select multiple if applicable. If you are drop-shipping orders to customers, you would check the “this entity is for drop-shipping" box.  Click “save” before moving to step 2.

Step 2: First, choose the applicable state and complete the form that will loadOnce you’ve completed all required steps, please download a copy of the form for your records by clicking the “download” button. You will need to repeat this process for each state in which you hold a tax exempt status.

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Once you've completed this process, you should be able to refresh your cart and see the taxes removed. If this is not the case, please contact our Customer Service team.

 

Am I required to complete the Tax Exemption process in order to make any purchase on Spoonflower?

No, you are not required to do so in order to make a purchase. The Certificate is only applicable if you are registered in your state as a seller and are reselling your Spoonflower purchases.

 

Is it enough to submit just my state Seller's Permit, or my business registration certificate?

No. Spoonflower needs a Tax Exemption / Resale Certificate from you in order to be able to exempt your purchases from sales tax. Your seller's permit or business registration may qualify you for tax exemption or a resale certificate, but that info alone is not enough for us to exempt your orders from sales tax.

 

What if I have a Federal Form SS-4 with my Employer ID Number?

Sales tax is a state tax determined by each state individually. Your Federal forms will not apply.

 

What determines the taxability of a purchase?

The taxability of a purchase is determined by where the purchase is shipped.  In order for your purchases to be tax exempt, you will need to repeat the exemption process for each state in which you hold a tax exempt status and are shipping to. 

 

I uploaded my tax exemption information. Can I be refunded for sales tax paid on past orders?

Sales tax can be refunded for purchases made within 30 days prior to the date of upload of a valid resale/tax exemption certificate. Purchases made before the 30 day mark have already had taxes remitted to the state of shipment, and cannot be refunded.

Once I've completed the tax exemption process, how do I request a refund for the sales tax of my previous orders?

Contact Spoonflower using the email address of your account. This will help us confirm your tax exemption. Please reference the order number(s) in question, as that will help up locate them more efficiently. Remember, we can only refund the tax on orders placed within the 30-day window before the exemption certificate was uploaded.

 

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