It is the responsibility of a seller to determine whether they need to charge sales tax, as well as report and remit the sales tax collected to the appropriate taxing authority.  Sales tax rules are complicated, and vary by jurisdiction and type of goods sold.  We recommend that you speak with a qualified tax adviser if you have any questions regarding your requirement to collect and remit sales tax.

In general, only online sellers with “nexus” (legalese for “a physical presence” such as a store, office or employee) in a state or district with sales tax laws are often required to collect on items sold and delivered within their state.

If you determine that you are required to collect sales tax on your Tophatter sales to buyers in certain locations, we recommend considering potential sales tax implications in setting your opening bid and then accounting for sales tax from the winning amount if applicable. 

It is also possible to invoice buyers outside of Tophatter for sales taxes on their Tophatter purchase.  However, if you intend to do this, you must include an appropriate disclosure in your listing.  For example, if you intend to charge buyers from Virginia a sales tax, you should indicate: "buyers from Virginia will be invoiced separately for sales tax" within the listing description.

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Last updated Jul 05, 2016 03:05PM PDT.