US Goods and Services Tax : A Guide for Bookvault Customers

If you're a US customer, or you're ordering books for delivery to a US customer, you may notice GST being applied to your Bookvault invoice.

The amount you're charged can depend on where the books are being delivered, the applicable tax rules in that location and the type of product or service being purchased.

What is US GST?

US Goods and Services Tax (GST) is a consumption tax applied to products and services sold into a state.

The products and services subject to tax can vary between states, but books are included within GST for most US states.

The rate applied to a sale is based on the destination of the product, rather than simply the location of the person placing the order.

For example, if you order a book and have Bookvault deliver it directly to a customer in another state, the applicable tax is based on your customer's delivery destination.

Why am I being charged GST now when I wasn't previously?

Businesses supplying goods and services to US customers may become required to collect tax once they reach economic nexus within a particular state.

Economic nexus thresholds vary between states.

As Bookvault's US business has grown, it has reached economic nexus in an increasing number of states. This means GST now needs to be applied to qualifying sales being delivered to those states.

Why can I be charged GST in one state but not another?

Tax requirements differ between US states.

Some states don't levy the relevant tax, while others have different economic nexus thresholds.

As a result, an order delivered to one state may be subject to GST while an order delivered somewhere else isn't.

For the current list, see:

Which US States Does Bookvault Currently Charge Tax In?

 What is the GST rate?

There isn't one fixed rate.

GST can vary between states and even between locations within the same state because state and local taxes can combine.

The average tends to be around 6–7%, although some locations have no applicable tax and, in some cases, the rate can exceed 10%.

Tax may also apply differently to services such as Bookvault subscriptions depending on individual state policies.

How does Bookvault calculate the correct GST rate?

Bookvault works with Avalara to calculate the appropriate tax.

The calculation takes into account factors including:

• Product type
• Location
• Nature of the customer

Avalara's integrations with Bookvault and The Great British Bookshop help determine the appropriate tax to charge.

For more information:

How Does Bookvault Calculate the Correct US Tax Rate?

 What if I don't believe I should be charged GST?

There are circumstances where you may be exempt from paying GST, including when purchasing books for resale or where another recognised exemption applies.

To avoid GST being charged, you'll need to provide Bookvault with a valid exemption certificate obtained from your state tax authority.

If you already have an exemption certificate, contact Bookvault. Avalara can then arrange for you to upload the certificate for validation.

Once Bookvault and Avalara have a validated certificate on file, tax won't be applied to qualifying purchases.

For more information:

What Should I Do If I Believe I’m Exempt From US Tax?

If you're unsure about your individual tax liability, speak to your tax adviser. Bookvault and Avalara can't provide customers with specific tax advice.