Sales tax shows up on most invoices. Here's how it's figured and what to do if you're tax exempt.
What gets taxed?
When sales tax applies, it's figured on the hammer price plus the buyer's premium. Win an item at $100, and tax is calculated on $118, not $100.
Why tax varies between auctions
Auctions take place in different cities and states, so two auctions can have different tax rate.
Here's how:
- Upload your certificate. Go to Profile, then Tax Exempt Certificates. Each state needs its own certificate. Once it's on file, it applies to every auction in that state until it expires.
- Choose your tax status when you bid. The first time you bid on an auction, you'll see the auction terms with a row labeled Tax status for this auction. Select Tax exempt.
- Provide your certificate if asked. You'll be asked for a valid resale or exemption certificate. Once it's verified, tax is removed before payment is collected.
If a certificate expires, upload a new one to keep your exemption.
My invoice shows tax, but I'm exempt
Check that your certificate is uploaded and covers the state where you're picking up. You can see the status of each certificate in your dashboard under Profile, then Tax Exempt Certificates.
Your certificate needs to be on file and verified before the auction closes. Once invoices are created with sales tax, you're responsible for paying it.