Who charges my customer sales tax? Does it happen automatically?
Yes, it is entirely automated. Any applicable sales tax is automatically calculated and applied at checkout based on the final shipping destination, which is paid directly by the customer.
Because our system processes the transaction at the order level, you are not responsible for collecting or remitting sales tax.
Instead, the money you make is treated as business earnings:
- Your earnings are income: The margins you make on each sale accumulate as your store profits.
- Reported via 1099: Rather than dealing with messy retail sales tax, your total profits are simply treated as independent income, and we will issue you a 1099-NEC form at the end of the fiscal year if you meet the IRS threshold.
Furthermore, our platform is 100% free for you to use—all processing and administrative costs are built directly into the product purchase price.
How do you handle tax-exempt organizations (schools, churches, etc.)?
We are happy to accommodate tax-exempt organizations! If your customer qualifies for tax exemption, they can easily receive a refund for the sales tax applied at checkout by following these steps:
Have the organization complete their purchase through the checkout screen. Sales tax will be applied initially while the payment processes.
Email the organization's official tax-exemption documentation to support@1300help.com. Please make sure to include the specific order number in the subject line or body of the email.
Once the purchase officially settles with the bank, our accounting team will review the documentation and refund the applied tax directly back to the original payment method.