Why am I being charged sales tax on my purchase?

Why am I being charged sales tax on my purchase?

SUMMARY

This article explains the circumstances under which sales tax will be collected on orders processed through the eSellerate system.

MORE INFORMATION

As of January 2015, DR MyCommerce, Inc., eSellerate's parent company, is registered to collect sales tax on behalf of the state governments of all U.S. states that have sales tax.  In some of those states, sales tax might or might not be collected depending on the contents of your shopping cart.

All sales taxes collected by eSellerate are remitted to the appropriate taxation authorities.

Note for Customers in Norway:  Norway has enacted a law requiring companies such as eSellerate to collect sales tax on purchases by customers located in Norway, when the orders include electronically-downloaded products.  This tax is separate from VAT (Value Added Tax), which is collected from customers in countries that are part of the EU.

Non-Taxable Orders

Some states only require the collection and remittance of sales tax on orders that contain physical products to be shipped to the customer.  In the following states, sales tax will only be collected on physical products:

  • Arkansas
  • California
  • Florida
  • Georgia
  • Idaho
  • Maryland
  • Missouri
  • Nevada
  • Oklahoma
  • South Carolina
  • Virginia

If you are located in one of the above states and you place an order that includes at least one shippable/physical product, sales tax will be collected on the physical item(s) only (but not on any electronic downloads, services, etc.).  If you are located in one of these states and you place an order that includes no shippable items, no sales tax will be collected.

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Topic Information
  • Topic #: 5570-366
  • Date Created: 01/20/2009
  • Last Modified Since: 01/07/2015
  • Viewed: 7106
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