Introducing Posh Remit—Sales Tax Made Simple

PoshRemit.pngWe’re excited to introduce Posh Remit—an innovative, hassle-free service that calculates state and local sales taxes, collects it from shoppers, and submits the appropriate amount to the state on behalf of Seller Stylists so you can focus on your business, not your taxes.

As you may have heard, new laws have been enacted that require marketplaces to collect sales tax on all eligible orders. This means that Poshmark is required or may be otherwise obligated to collect sales tax on sales and submit these taxes directly to states and localities. To simplify sales tax for our community, we created Posh Remit—one of the first country-wide tax remittance services. This allows Poshers to continue to reach shoppers across the United States, while at the same time supporting their local communities directly.

Starting in April, Posh Remit will begin collecting and submitting sales tax on all eligible orders and we’ve updated our Terms of Service, effective as of March 28th, to reflect these changes.

Seller Stylists are quickly becoming the next generation of retailers, and we’re committed to continuing to scale our services to make it easy for anyone to run and grow their own business on Poshmark.

FAQs

How is sales tax calculated?
State and local sales tax, when applicable, will be charged on items purchased on Poshmark that are shipped to a U.S. address. The amount of sales tax charged on an order is based on a number of factors including, but not limited to:

  • Type of item purchased
  • Buyer’s delivery address
  • Seller’s return address
  • Shipping costs

State sales tax may not be charged if the buyer’s delivery address is located in the following states:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon

Please note, Poshmark does observe states’ sales tax holidays. Poshmark will not charge applicable sales tax on these dates to the extent that the law exempts the specific item that is purchased.

FAQs for Sellers

What does sales tax mean for me?
Poshmark will automatically calculate, collect, and submit state and local sales tax for sellers on a regular basis. If you’d like to review how much sales tax has been collected and remitted for your sales simply request a My Sales Report.

What does this mean when I have to report taxes?
Sellers don’t need to collect and/or pay sales tax for Poshmark orders sold and delivered within the United States. Currently, Posh Remit will calculate, collect, and remit sales tax on behalf of our sellers to state taxing agencies on a regular basis.

FAQs for Shoppers

Why did I get charged sales tax?
Poshmark is responsible for charging sales tax, as applicable, per state laws and local tax laws or where Poshmark is otherwise obligated to do so. Sales tax can vary per order due to several factors. If you have an available Posh Credit balance, your credits will first be applied towards your order, which includes sales tax, prior to charging your payment method.

Please note, Poshmark does observe states’ sales tax holidays. Users will not be charged applicable sales tax on these dates to the extent that the law exempts the specific item that is purchased. If you have any questions or concerns, contact us here.

Why am I being charged sales tax on used items?
Poshmark is required to collect sales tax on all taxable sales. Sales tax is generally imposed on all sales of tangible personal property (e.g., clothing, shoes, accessories) regardless of whether the property being sold is new or used.   Some states exempt certain types of clothing items or accessories, but these exemptions vary by state and are not dependent on whether the item being sold is new or used. There is generally not an exemption for sales of used items.

Even if the seller paid sales tax on the item being sold when it was purchased, applicable sales tax will still apply to items purchased on Poshmark because the item is being purchased/sold in a different transaction. Thus, Poshmark is required to collect sales tax if the item being sold is taxable.

Why was I charged a different sales tax amount for my offer?
Sales tax on completed offers may vary from the estimated tax amount shown at the time the offer is made due to several factors such as:

  • Final offer price
  • Delivery address
  • Tax rates

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