So sales tax reporting and paying deadline is January 31 in Washington State. How do we handle collection on sales made through DPW-PAYPAL?
I didn’t worry about it last year as no sales here, but had sales in 2018, so need to address it as the number of states requiring sales tax on sales made on line is increasing.
I just found a helpful website for addressing other state tax issues. https://www.taxjar.com/states/
I believe that Etsy is collecting tax on sales in some other states, but can’t remember what the last info they published said.
@Rosemary_Antel, DPW will automatically calculate sales tax for your sales that occur through DPW auctions or DPW generated PayPal links, if you have opted in and entered your shipping address in DPW, which you have.
The service we use behind the scenes is, in fact, TaxJar, that you linked to. You can rely on them, and thus DPW, to calculate and charge the buyer any sales tax due according to the latest laws and rates in effect. It is, however, up to you, as the artist, to file and submit the sales tax you collect to the appropriate taxing authority.
This is absolutely awesome! I am working on my sales tax forms now, so it is at the top of my mind. Thank you for the information. I am impressed by how well you anticipate our needs.
Can we tell from our end if sales tax was charged (when opted in)?
The easiest way is to take a look at your Sales Report for the time frame in question.
I’m a DPW newcomer from North Carolina, and I just this minute finished registering online for my Sales Tax ID (after also opting in on DPW for calculating sales tax). Here in NC, it’s very simple… you can register as an artist, and if you anticipate collecting less than $100 a month in sales tax – which is definitely the category I fit into – you just pay them quarterly online. Just hoping to reassure anyone who is as nervous as I was about this, that it is no big deal (although it gets complicated if you travel to art fairs out of state).