This article is for buyers located in the United States.
Introduction
Sales tax is a consumption tax imposed by individual US states on sales of certain goods that occur within their jurisdiction. The particular taxing rules and rates vary from state to state.
Sales taxes are imposed on the buyer, but in some cases are required to be collected by the seller. Where the sale occurs through an online marketplace, the operator of the marketplace is responsible for collecting sales tax from buyers.
Detailed below is an overview of the jurisdictions within the US in which Envato is or will shortly charge, collect and remit sales tax to the local revenue authority.
|
US State |
Maximum Tax Rate |
Taxability |
| Arizona | 11.2% | Item purchase, buyer fee, handling fee and support |
| Connecticut | 6.35% flat rate | Item purchase, buyer fee, handling fee and support |
| Illinois | 6.25% flat rate | Pre-written software, handling fee and support |
| Massachusetts |
6.25% flat rate | Pre-written software, buyer fee and support |
| Michigan | 6.00% | Pre-written software, handling fee and support |
| New Jersey | 6.625% flat rate | Item purchase, handling fee and support. |
| New York | 8.88% | Pre-written software, handling fee and support |
| North Carolina | 7.75% | Item purchase, handling fee and support |
| Pennsylvania | 8.00% | Item purchase, buyer fee, handling fee and support |
| Rhode Island | 7.00% flat rate | Pre-written software, buyer fee, and support |
| Texas | 8.00% | Item purchase, buyer fee, handling fee and support |
| Washington | 10.5% | Item purchase, buyer fee, handling fee and support |
| Wisconsin |
5.5% | Item purchase, handling fee and support |
FAQ for Buyers located in marketplace states
What rate of tax is applied?
The rate of tax applied to your purchase depends on your location. You will need to provide us with accurate billing details namely US state and zip code to ensure that we can accurately calculate the applicable rate of tax. You can do this through your account settings on Envato Market. The above table gives an indication of maximum sales tax rate that apply in each US jurisdiction where Envato is currently collecting and remitting sales tax.
Why is there no tax on some items?
Tax is applied on taxable components of your purchase based on the state sales tax regulations. The above table provides a guide in relation to taxability of purchase components.
What if I am exempt from sales tax in the above states?
If you have an exemption from sales tax in your state of residence, please send your exemption certificate issued by the relevant state authority. Once your certificate is validated, we will apply an exemption to your account.
You can send the required information by using our contact form:
- Visit the contact form on our Help Center.
- Select the "I am sales tax exempt" option from the "Tell us more" menu.
How is my transaction reported to the state tax authority
Where Envato collects state sales tax on your transaction, we will report the sales tax collected to the state revenue authority in accordance with their designated processes and procedures.
For example, if you have a $33 per month subscription and are charged 7% sales tax, the sales tax component of $2.31 will be remitted to the relevant state Revenue Office or Department of Revenue in line with the applicable reporting obligations in that State.
Where to find invoices?
All additional information regarding invoices can be found in the Buyer’s Guide.
You will also be able to see sales tax on your statement page which can be accessed through your account settings.
Buyers located in non-marketplace US states
This section is intended to provide information for buyers located in US states other than the “marketplace states” (we explained “marketplace states” in the Introduction at top of this page).
Customers buying an item may see the amount of sales tax in their shopping cart and on their invoices & statements. If applicable, sales tax will be a separate line item on your invoice. For all purchases occurring in non-marketplace states, the collection of any applicable state taxes is the responsibility of the author.
FAQ for Buyers located in non-marketplace US states
What if I am Sales Tax exempt as a customer?
If you are sales tax exempt, you will need to contact the author directly. Instructions on how to contact the author can be found in this article.
What rate of tax is applied?
The rate of state tax applicable to your purchase (if any) depends on a number of factors, including your location and whether the author has the requisite nexus with your state. You will need to provide accurate billing details so that the author can calculate the correct rate of tax (if applicable). You can do this through your account settings on Envato Market.
Why is there no tax on some items?
Different states have different tax rules. Some items (or components or items and/or add on services) may be taxable in some states and not taxable in other states. Additionally, some states only charge sales tax where both buyer and author are located in the same state. You should seek your own tax advice if you have any questions.
Where to find invoices?
All additional information regarding invoices can be found in the Buyer’s Guide.
You will also be able to see sales tax on your statement page which can be accessed through your account settings. Any questions in relation to the application of sales tax to your purchase should be directed to the author.