This article describes a Chairish seller's tax liability, steps for updating tax information, and how you can obtain a report of the taxes collected on past sales.
This article contains the following sections:
- Determining Tax Liability
- Nexus Status
- Your Seller Tax Settings
- State Specific Requirements
- Wholesale Accounts
- Reporting
- 1099K's
Determining Tax Liability
Chairish is responsible for calculating and collecting sales tax on all taxable orders (when the buyer is located in a taxable state) and remitting the taxes to the appropriate party, based on your Seller Tax Settings.
Tax liability is determined based on the buyer’s location (for clarification, "location" refers to order's destination state) and yours (along with your tax settings). As an online platform connecting Buyers and Sellers, Chairish is responsible for collecting tax only in “Market Facilitator” designated states. This means that if a buyer purchases from a Marketplace Facilitator state, Chairish will calculate, collect, and remit sales tax for you.
No action is needed on your part!
Nexus Status
A nexus status refers to the level of connection a business has with a state, creating a legal obligation to collect and remit sales tax or pay income taxes there.
If a buyer purchases from a Nexus state, and you have Nexus in that state, Chairish will calculate and collect sales tax based on your settings and pass the tax to you. The sales tax will be included in your seller payment when the order closes. It is then your responsibility to remit sales tax to the state.
In order for us to know how much tax to collect for you, you’ll need to determine your tax liability and indicate it in your Seller Tax Settings. If you have Nexus in a state, check the box next to that state.
Your nexus status is based on whether:
- You are physically located in the state.
- You have significant sales volume in that state.
If you are unsure about your nexus status, please check with your tax advisor.
Your Seller Tax Settings
When logged into your Chairish account, update your Seller Tax Settings.
- Always check the state in which your business is located.
- If you have economic nexus in any other states, be sure to check those boxes as well.
To determine the customer location for any of your past sales, go to My Sales History in your Chairish Seller Dashboard. Click on the Download button to download your sales history. The column in the spreadsheet titled "Shipping" will give you the customer location for each sale.
State Specific Requirements
Chairish is registered to collect New York State sales tax and will collect sales tax on all taxable sales of tangible personal property that it facilitates for marketplace sellers for delivery to a New York State address. Therefore, there is no need to request an ST-150 form from Chairish. The official statement is made available in Technical Memorandum TSB-M-19(2.1)S for the State of New York an excerpt from which is provided below.
Alternative to Form ST-150
A marketplace provider who has a publicly-available agreement with its marketplace sellers that includes the following statement, or one that is substantially similar, does not need to issue Form ST-150 to such sellers:
Chairish Inc. is registered to collect New York State sales tax and will collect sales tax on all taxable sales of tangible personal property that it facilitates for marketplace sellers for delivery to a New York State address.
This provision will have the same effect as if the marketplace provider had issued Form ST-150 to its marketplace sellers. If a marketplace seller has a publicly-available agreement with a marketplace provider that includes the statement provided above, or other language pre-approved by the Tax Department, it does not need to obtain Form ST-150 from such provider.
Wholesale Accounts
If your account has been established as a Wholesale account, Chairish will collect taxes and submit on your behalf.
Reporting
If you would like to review the tax collected on past sales, including the location of each buyer and the tax collected and remitted to you:
- Log into your Chairish account.
- Click on the My Sales History link on the left side of the page to access a list of your sold items.
- You can filter the results by the sale date.
- To export an Excel/CSV file of your sold items, click on the Download button.
1099K's
Chairish does not issue 1099K's to sellers. Chairish uses third-party settlement organizations ("TPSO") such as Stripe and PayPal to process seller payments. As a result, the TSPOs are responsible for filing and distributing 1099K forms.
- If you use Stripe for your Chairish payments, you can access your 1099K directly from your Stripe account. For more information, reach out to Stripe Support.
- If you use PayPal for your Chairish payments, you can access your 1099K directly from your PayPal account. For more information, see PayPal 1099 Help.
If you would like to review the tax collected on past sales, you can do so by logging into your Chairish account and accessing your on the My Sales History page.