This article explains how to use your state tax registration number to set up sales tax calculation and how taxes are handled based on where your sales are shipped or delivered to.

Use your state tax registration number to set up sales tax calculation

As part of setting up a shop, we ask for your state tax registration number for every state where you have a tax nexus, except those that don't have sales tax (Alaska, Delaware, Montana, New Hampshire, Oregon). Sales taxes will be calculated for all states where you have provided a state tax registration number.

It's your responsibility to update this information and make sure that it's accurate and current. Remember that you're still responsible for reporting and paying taxes on your sales from your shop to the appropriate tax authorities whether or not you provide a state tax registration number.

How sales tax is calculated for different products

Facebook determines the sales tax for your product based on the following:

• Product category: We provide a list of product categories (e.g. clothing). The product category that you select for your listing determines how sales tax will be calculated. This calculation varies based on state laws for that product category, and you're responsible for determining the correct product category for your listings.
• Destination-based tax calculation: We use the shipping address (which includes 5-digit zip code and plus 4 if provided) to calculate destination-based sales tax from all levels (state, city, county and districts).

Note: We don't calculate product-based excise taxes, fees or surcharges.

How different states handle sales tax

Facebook also handles taxes for shops differently if the states where your product is delivered is a marketplace facilitator or non-marketplace facilitator state.

Marketplace facilitator states

In some states, instead of the actual seller, a marketplace facilitator is required to collect and remit sales on the seller's behalf if certain conditions apply. Facebook is considered a marketplace facilitator in these states:

• Washington
• Pennsylvania
• Oklahoma
• Minnesota – effective 1 November 2018
• Connecticut – effective 1 December 2018

For sales delivered to Washington, Pennsylvania, Oklahoma and Connecticut, Facebook will automatically calculate, collect and remit taxes for you. We'll also handle the refunds of the sales tax where Facebook has collected and remitted the sales tax. No action is required in your tax setup for sales delivered to these states. We must calculate, collect and remit taxes for you even if you don't have nexus in these states.

For sales delivered to Minnesota, if you have already provided us with your state tax registration number, there will be no changes to your account and no further action is required. You will continue to be responsible for remitting the taxes yourself for sales delivered to this state. If you have not provided us with a sales tax registration number, effective 1 November 2018, we're required to calculate, collect and remit taxes for you even if you do not have nexus in this state.

Non-marketplace facilitator states

In non-marketplace facilitator states, you're responsible for reporting and remitting taxes for your shop's sales. Sales tax rules vary by state, so you'll need to contact your tax advisor or tax authority to learn about your state tax obligations. You should also review your tax calculation settings to ensure that your tax nexus, product tax code assignments and all related info for your products are current.

How to enable sales tax calculation in states where you have nexus

As part of setting up your Facebook Marketplace shop, we ask for your state tax registration number for every state where you have nexus, except those that do not impose sales tax (Alaska, Delaware, Montana, New Hampshire, Oregon). It is your responsibility to update this information and ensure that it is true, accurate and current.

By providing your state tax registration number, you enable the sales tax calculation to determine sales tax for products that you sell through your Facebook Marketplace shop. If you do not provide a state tax registration number, we will not calculate sales tax on your sales. You are still fully responsible for reporting and remitting taxes on your sales from your Facebook Marketplace shop to the appropriate tax authorities whether or not you provide a state tax registration number.

How to set up sales tax calculation settings

Facebook provides and maintains a list of product categories. By selecting the product category assignment for your product listings, taxes will be calculated based on the taxability of the selected product category. Taxability of the product categories depends on state laws. You're responsible for reviewing and determining the correct product category assignments for your product listings.

Facebook's tax calculation tool uses ship-to address (includes 5-digit zip code and +4 if provided) to calculate destination-based sales tax from all levels (state, city, county and districts). We do not calculate any product-based taxes or any fees or surcharges.

Contact us if you still need help.

* Nguồn: Facebook