New laws now require marketplaces to collect sales tax on some items in some states. Because of this, Kidizen is required to collect sales tax (when it applies) and remit it to these states. This means that when a buyer makes a purchase, state sales tax will be added to the order total at checkout if it applies. This does not affect the seller, as it is added on top of the order total and is collected and remitted to the state by Kidizen. If a Kidizen buyer has a Kid Bucks balance (including credit), that will be applied first to the total order amount before your payment method is charged.
Sales tax is charged based on state tax laws. To read more about your state taxes we have found this TaxJar State Guide helpful.
All items on Kidizen (both new and used) may be subject to sales tax, and states differ on what kinds of items are taxable. We have found The Consumer's Guide to Sales Tax on TaxJar helpful for general tax information.
How Sales Tax Is Calculated
The amount of sales tax charged on an item is based on, but not limited to:
- The type of item (clothing, books, toys, etc.)
- Where the item is shipped TO
- Where the item is shipped FROM
Because sales tax calculations depend on both the buyer's shipping address and the seller's return address, all sellers are required to have a return address entered in their account in order to sell.
How it Works
There will be a line item in the order details indicating how much the buyer paid for sales tax, but this does not affect how much is made on a sale. Sales tax is charged to the buyer on top of the order amount, and Kidizen remits that tax directly to the relevant state(s). If a refund is made on an order with sales tax, Kidizen will refund the appropriate amount of sales tax to the buyer.
Sales tax is different from federal/state income taxes that are filed yearly. Sales tax is a tax paid by the buyer when placing an order, collected by Kidizen, and remitted to the relevant states by Kidizen.
Sales Tax Holidays
We observe states’ sales tax holidays and sales tax will not be charged on these dates. Each state differs in their tax holidays.