Who collects and pays sales tax on Handfair orders?

Details

As the marketplace, Handfair works out the sales tax at checkout, collects it from the buyer and sends it to the state. Makers don’t collect, hold or send in sales tax on Handfair orders.

Handfair is registered to collect sales tax in Michigan today, so tax is added to orders delivered there. Orders to other states don’t have sales tax added yet. Sales tax will be turned on in more states in the future, as Handfair grows.

Sales tax is never part of a maker’s payout. You’re paid your item price, shipping and any gift wrapping. The tax a buyer pays stays with Handfair to send to the state, so there’s nothing for you to pass along.

Sales you make outside Handfair, like at craft shows or on your own website, are still yours to handle. If you’re registered for sales tax in your state, some states ask you to list marketplace sales on your return as sales the marketplace already covered, and a few expect you to handle in-state sales a marketplace isn’t collecting on yet. Your state’s tax website explains its rules, or ask us at support@handfair.com.