What is State Sales Tax?
In recent years, states in the US have introduced regulation on sales tax on internet sales. This means that Depop is now required by law to collect sales tax in certain US states on behalf of our sellers. As buyers, you may see this tax applied to your purchase at checkout soon, if the state you live in requires us to do so.
Don’t worry - you don’t have to do anything. We simply collect this sales tax on purchases, wherever applicable, and give it back to the government. You won’t need to do this on your own and your experience as either a buyer or a seller won’t be any different. If you’re a seller and have already been calculating sales tax on your listings on Depop, you won’t need to do this anymore. You may soon see this tax listed on order confirmations when you make a sale – but only the buyer will be charged for it. Buyers will see this tax applied to their total at checkout.
This law isn’t just for Depop and you may have seen this tax charged at other places you shop. It’s now required by any large marketplace that operates in the United States. Depop does not profit from this tax - it’s not a Depop fee and Depop has no say in how much tax is charged.
We’re doing this as simply as possible, to protect our community and make things easy for the small businesses on Depop.
We know taxes can be complicated. So we talked to many members of our community about how we can simplify this process as much as possible for you. Our approach has your needs in mind, whether you’re a buyer, a seller, or both.. That said, we have put together this FAQ in case you have any other questions.
What does this mean for me as a buyer?
This state sales tax will be applied automatically to orders placed in certain states. You’ll see it included in your purchase breakdown on the checkout page. This charge only applies certain types of items in certain states.
We will keep you updated on which states and categories are eligible here on this page. Check regularly for more info on states impacted.
|Date of introduction||State|
|16th November 2020||Virginia|
|9th December 2020||California|
What does this mean for me as a seller?
You don’t need to do anything. Really. Depop will calculate and collect this tax according to the rules in your buyer’s state. The state sales tax will be automatically charged to the buyer and included in your buyer’s purchase breakdown. You don’t need to pay an extra fee for this service, and you don’t need to change how you price your items or file your taxes. The only exception is if you were already calculating and collecting sales tax on your Depop listings - in this case, you won’t need to do this anymore.
Want a full breakdown of how we take the tax alongside our fee? Check out our blog here.
FAQs can be found here