This article will answer some frequently asked questions regarding Cratejoy Payments and sales tax.
In This Article:
Are you charging sales tax on Marketplace orders? Why?
How will sales tax work on Storefront orders?
Why can’t I see the sales tax collected on marketplace orders?
Will I receive a 1099 form come tax season?
When do I need to talk to a tax professional?
Are you charging sales tax on Marketplace orders? Why?
Yes, by law Cratejoy is required to charge sales tax on transactions made on the Cratejoy Marketplace.
How will sales tax work on Storefront orders?
Sales tax on storefront orders is up the seller's own business tax settings. Cratejoy can help facilitate you charging sales tax and will provide you with the sales tax so you can report and remit on your own as advised by your tax professional. All sales tax charged on storefront orders will be available to see inside your Sales Tax report.
Why can’t I see the sales tax collected on marketplace orders?
Sellers enrolled in Cratejoy Payments will notice that any new or renewal Marketplace orders using Cratejoy Payments will be removed from the Sales Tax Report in the analytics section. This is because Cratejoy takes those monies and remits them to the appropriate tax administration.
Will I receive a 1099 form come tax season?
If you’re a US seller, the IRS form 1099-K is used to report your earnings.
Sellers enrolled in Cratejoy Payments can access a 1099 form within their Stripe Express account–the account you, as a seller, connected to Cratejoy Payments.
You can learn more about the 1099-K forms issued by Stripe.
If you aren’t enrolled in Cratejoy Payments, you won’t receive a 1099-K.
When do I need to talk to a tax professional?
For questions regarding specific tax requirements, please reach out to your local tax professional since Cratejoy is unable to provide tax advice.