US State Sales Tax on Depop Orders - FAQ

 

Based on applicable US State enacted marketplace facilitator tax laws, Depop automatically calculates, collects, and remits US sales tax on behalf of sellers located anywhere in the world when an order is sent to a recipient in the US.

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
2020 Virginia, California
2021 Illinois, Washington, Texas, New Jersey, Michigan, Georgia, Arizona, Indiana, Massachusetts, Maryland, North Carolina, New York, Ohio, Connecticut, Colorado, Oklahoma, Wisconsin, Nevada, Tennessee, South Carolina, Alabama, Utah, Louisiana, Kentucky, Arkansas, New Mexico, Iowa, District of Columbia, Hawaii, Nebraska, Idaho, West Virginia, Maine, Mississippi, North Dakota, South Dakota, Wyoming, Pennsylvania, Rhode Island, Minnesota, Vermont, Florida, Kansas
2023 Missouri

  

No action is required on your part to collect US sales tax from buyers where Depop collects and remits sales tax on your behalf. You don’t have to update your sales tax settings in your shop for orders delivered to these states and territories.

 

FAQs

I already charge US sales tax on my listings, what do I need to do?

If you’ve already been calculating and applying US sales tax to your listings, you no longer need to do this. Depop will do this automatically for you based on the location of the US buyer.

 

Does this affect how sellers file personal taxes? 

No. Sales tax and personal tax are two separate things. We are only responsible for collecting sales tax for items sold on Depop. Your personal or business tax return is not affected by this process.

 

How do sellers give customers a price when bundling? 

US sales tax won’t affect how you price bundles. Generally sellers bundle either by creating a new custom listing for the buyer, or by changing the prices of each individual listing in the bundle. Either way, the price of your bundle will be pre-tax, so remember that when you quote the bundle price to your buyer - tax will be applied automatically at checkout to the item(s).

 

How will this affect people shipping internationally? 

This depends on where your buyer is. If you’re in the US and sell to someone outside the US, there’s no US state sales tax on your item. However, your buyer may be charged applicable taxes for their location - see here for more details

 

If you’re outside the US and selling to someone in the US, sales tax will be applied according to the location of your buyer. Depop will apply and collect this tax automatically, so you don’t need to do anything differently or pay anything extra.

 

Is the processing fee charged on sales tax too? 

This sales tax is added on to the final purchase price. But Depop has decided to waive our 10% commission on this element. We know it’s not your decision to increase your item’s price!

 

However, we still need to process the full amount through our payment provider. This means the tax element is included in the total price when calculating the Payment Processing fee. There are extra costs related to this tax that now apply to Depop, so we do need to charge the Payment Processing fee on the total amount, including tax.

 

Want a full breakdown of how we take the tax alongside our fee? Check out our blog here.

 

 

 

 

 

Was this article helpful?
72 out of 298 found this helpful

Articles in this section

See more