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Why Is US Tax Charged for Some Delivery Locations but Not Others?

Find out why Bookvault may charge tax on books delivered to one US location but not another, and how the delivery destination and economic nexus affect the tax applied.

Tax on Bookvault US orders is based on the destination where the books are being delivered.

This means you may be charged tax on an order sent to one US state or location but not on an order sent somewhere else.

Why does the tax differ between US states?

US tax requirements vary by state.

Some states don't levy the relevant tax at all. Other states do, but Bookvault is only required to collect it once its business reaches that state's economic nexus threshold.

These thresholds differ between states, so Bookvault may currently be required to collect tax in one state but not another.

Is the tax based on my address or the delivery address?

The tax is based on the destination of the books.

For example, if you're based in one state but ask Bookvault to dropship an order directly to a customer in another state, the applicable tax is determined by the customer's delivery destination, not your own address.

Which US states does Bookvault currently charge tax in?

Bookvault maintains a separate, regularly updated list of the states where tax is currently being charged.

See:

Which markets will Bookvault be charging GST for?

The list can change as Bookvault reaches economic nexus thresholds in additional states.

How is the tax rate calculated?

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

Bookvault works with Avalara to calculate the appropriate tax based on factors including:

  • Product type
  • Location
  • Nature of the customer

What if I believe I shouldn't be charged tax?

If you believe you're exempt from the tax, you may need to provide Bookvault with an appropriate exemption certificate.

This can apply in circumstances such as resale or certain qualifying organisations. Once Bookvault and Avalara have a validated exemption certificate on file, tax won't be applied to qualifying purchases.

For more information:

I don't believe I should be charged GST. What should I do?