I already charge sales tax on my listings, what do I need to do?
If you’ve already been calculating and applying sales tax to your listings, you no longer need to do this. Once our new checkout is live, Depop will do this automatically for you.
Will 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 tax return is not affected by this change. If you are already applying and declaring sales taxes, you won’t need to anymore as we’ll be doing it for you.
How do Sellers give customers a price when bundling?
This 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.
If you’re outside the US and selling to someone in the US, sales tax will be applied according to the state your buyer lives in. 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!
But we do 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.