Sales Tax Policy
Most US states have enacted marketplace facilitator tax laws that impact online marketplaces such as Delows. These laws shift sales tax and state-imposed fee collection responsibilities from third party sellers to the marketplace facilitating such transactions. As a result, Delows began calculating, collecting, reporting, and remitting applicable sales tax on behalf of our third-party sellers in the marketplace states listed in the Marketplace Facilitator Laws table below.
State and local sales tax laws are subject to change, and we will let you know when any changes occur.
Sales Tax for Sellers
Most US states have enacted marketplace facilitator tax laws that impact online marketplaces such as Delows. These laws shift tax collection responsibilities from third party sellers to the marketplace facilitating such transactions. As a result, Delows calculates, collects, reports, and remits applicable sales tax on behalf of our third-party sellers under Delows’s registered sales tax identification numbers.
Additional Information for Sellers
- Items sold on the Delows platform and shipped to buyers located in certain marketplace states may be subject to sales tax.
- Depending on the state, separately stated shipping charges using Delows shipping labels may be subject to sales tax.
- Whether sales tax will be added to the buyer’s order and at what rate depends on the nature of the item purchased and the shipment delivery address.
- The tax rate applied to your order will be the combined state and any applicable county, city, or other local taxes based on the delivery address.
- Delows will automatically calculate, collect, and remit any applicable sales taxes to the state taxing authorities on behalf of our sellers.
- There is no action required on the part of our sellers to remit the sales tax. Any applicable sales tax will be added to the buyer’s order as a separate charge in addition to the item price and shipping charges (unless you choose to pay for shipping).
- There are no additional charges or fees associated with the collection and remittance of sales tax by Delows.
- Sellers cannot opt-out of Delows’s sales tax collection when it is required by state, county, city, or other local law.
Colorado Retail Delivery Fee Update (June 2022): Beginning July 1, 2022, for each Delows transaction delivered within the state of Colorado, Delows is required to charge and collect a Retail Delivery Fee in the amount of $0.27 from our buyers on each Colorado transaction. This fee is in addition to the applicable Colorado state and local sales tax
For more information on this Colorado Retail Delivery Fee, please visit: Retail Delivery Fee | Department of Revenue – Taxation
All applicable sales taxes and state imposed fees are reflected as a separate line item on the purchase receipt(s) of the buyer and it is the buyer’s responsibility to pay all taxes and fees due.
Delows does accept federal and state issued sales tax exemptions. Buyers claiming an exemption from sales tax must provide the appropriate tax exemption documentation to Delows for review and, once validated, we will update your account accordingly to reflect the exemption.
Sales Tax for Buyers
Most US states have enacted marketplace facilitator tax laws that impact online marketplaces such as Delows. These laws shift tax collection responsibilities from third party sellers to the marketplace facilitating such transactions. As a result, Delows calculates, collects, reports, and remits applicable sales tax on behalf of our third-party sellers under Delows’s registered sales tax identification numbers.
Additional Information for Buyers
- Items sold on the Delows platform and shipped to buyers located in certain marketplace states may be subject to sales tax.
- Whether tax will be added to your order and at what rate depends on the nature of the item purchased and the shipment delivery address.
- The tax rate applied to your order will be the combined state and any applicable county, city, or other local taxes based on the delivery address. Note that if you reside in a state that does not impose sales tax, you may still see tax on your order if shipped to a state that does impose a sales tax.
- Separately stated shipping charges may or may not be taxable depending on the delivery location. The total tax amount on your order will include the tax on the item and on shipping, if taxable.
- Delows does accept resale certificates or other sales tax exemptions for purchases on the platform. Buyers claiming an exemption from sales tax must provide the appropriate tax exemption documentation to Delows for review and, once validated, we will update your account accordingly to reflect the exemption.
- Buyer coupons issued by Delows that reduce the sales price to the buyer but not the amount received by the seller are included in the sales tax base when applicable and the full sale price by the seller may be subject to tax.
How Tax is Calculated
State and local sales tax rates vary and the actual amount of tax applied to your order depends on many factors including:
- The final total item price
- The nature of the item purchased (taxable or non-taxable item)
- Separately stated shipping charges (taxable or non-taxable charges)
- The shipment or delivery location of the item
Given these factors, sales tax amounts are not displayed at item listing rather the actual sales tax amounts to be charged are displayed to the buyers before their purchase. The tax rate applied to an order is the combined state and local rate of the address where your order is delivered.
Update: Beginning July 1, 2022, for each transaction delivered within the state of Colorado, Delows is required to charge and collect a Retail Delivery Fee in the amount of $0.27 from our buyers on each Colorado transaction.
For more information on this Colorado Retail Delivery Fee, please visit: Retail Delivery Fee | Department of Revenue – Taxation
Marketplace Facilitator Laws
Delows is responsible to collect and remit tax on taxable items shipped to the following states:
STATE | COLLECTION START DATE | STATE | COLLECTION START DATE |
Alabama | 10/1/2019 | Missouri | 7/1/2021 |
Arizona | 10/1/2019 | Nebraska | 10/1/2019 |
Arkansas | 10/1/2019 | Nevada | 10/1/2019 |
California | 10/1/2019 | New Jersey | 10/1/2019 |
Colorado | 10/1/2019 | New Mexico | 10/1/2019 |
Connecticut | 10/1/2019 | New York | 10/1/2019 |
District of Columbia | 10/1/2019 | North Carolina | 4/1/2020 |
Florida | 7/1/2021 | North Dakota | 10/1/2019 |
Georgia | 4/1/2020 | Ohio | 10/1/2019 |
Hawaii | 1/1/2020 | Oklahoma | 10/1/2019 |
Idaho | 10/1/2019 | Pennsylvania | 1/1/2020 |
Illinois | 1/1/2020 | Rhode Island | 10/1/2019 |
Indiana | 10/1/2019 | South Carolina | 10/1/2019 |
Iowa | 10/1/2019 | South Dakota | 10/1/2019 |
Kansas | 7/1/2021 | Tennessee | 10/1/2020 |
Kentucky | 10/1/2019 | Texas | 1/1/2020 |
Louisiana | 7/1/2020 | Utah | 10/1/2019 |
Maine | 10/1/2019 | Vermont | 10/1/2019 |
Maryland | 10/1/2019 | Virginia | 10/1/2019 |
Massachusetts | 10/1/2019 | Washington | 10/1/2019 |
Michigan | 4/1/2020 | West Virginia | 10/1/2019 |
Minnesota | 10/1/2019 | Wisconsin | 10/1/2019 |
Mississippi | 7/1/2020 | Wyoming | 10/1/2019 |