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Why Am I Now Being Charged US Sales Tax by Bookvault?
Find out why sales tax may now appear on your Bookvault US orders even if similar orders weren't previously taxed.
You may notice sales tax being added to a Bookvault order when similar orders you've placed in the past weren't taxed.
This is because Bookvault's US business has reached economic nexus thresholds in an increasing number of US states. Once the relevant threshold is reached, Bookvault is required to collect tax on qualifying sales into that state.
What is economic nexus?
Economic nexus is a threshold that can require a business to collect and remit sales tax in a state based on the level of business it conducts there.
The threshold isn't the same in every state.
As Bookvault's US business has grown, it has reached the required threshold in additional states. This means tax may now be charged on an order even if you previously placed a similar order without being charged tax.
Which state's tax applies to my order?
The tax is based on the destination of the books, rather than simply where the person placing the order is located.
For example, if you order a book and have it shipped directly to a customer in another state, the applicable tax is based on the customer's delivery destination.
Why might one order be taxed and another not?
Not every US state is treated the same.
Some states don't levy this tax, while in others Bookvault may not yet have reached the state's economic nexus threshold.
Bookvault maintains a list of the states where it is currently charging tax here:
Which markets will Bookvault be charging GST for?
That list can change as Bookvault reaches economic nexus thresholds in additional states.
How is the correct tax rate calculated?
Bookvault works with Avalara to calculate the applicable tax based on factors including the product, location and type of customer.
Rates can vary between states and even between locations within the same state because state and local taxes can combine.
What if I believe I shouldn't be charged tax?
There are circumstances where you may qualify for an exemption, including certain resale situations and eligible organisations.
If you believe you're exempt, you'll need to provide the appropriate exemption certificate. Once Bookvault and Avalara have a validated certificate on file, tax won't be applied to qualifying purchases.