Ecommerce sales tax policies can be confusing, but in this post we’ll explain how US state sales taxes and international VAT/GST/customs duties are charged on our online stores.
Updated January 2023.
US State Sales Taxes
As of 2023, Walnut Studiolo does not need to collect any US State sales taxes on its website. This is because it does not meet the minimum economic nexus threshold (as a small/micro business), and our state of residence/business, Oregon, has no sales tax. [Source: Avalara]
However, sales of Walnut Studiolo products on marketplaces like Etsy or Houzz are subject to sales tax. These marketplaces are responsible for charging, collecting, and disbursing the sales tax, and we have no role in the process.
We re-assess the economic nexus threshold and update this post annually.
International Taxes: VAT, GST, and Customs Duties
The US has no federal sales tax. However, we ship to over 200 countries and many do have a national-level or federation-level sales tax, usually called the VAT (Value Added Tax) or the GST (Goods & Services Tax). In addition, many countries charge additional duties and tariffs on particular products at different rates.
Countries with a VAT/GST or other import taxes /custom excises collect these taxes directly from the recipient prior to delivering packages. This includes some of our more popular destinations, including Canada, Australia, member countries of the EU, and the UK, although this is not a comprehensive list.
With shipping to over 200 countries and several categories of products, and the majority of its sales in the US, Walnut Studiolo as a small business running its own website does not have the expertise to collect international taxes in advance.
In practice, that means that when a customer’s package arrives at their local post office, the country may charge additional taxes that must be paid prior to delivery. This both slows down delivery and can be an unwelcome surprise. On our website, we provide a link to a duty calculator and HTS tariff codes for customers to estimate the cost in advance.
NEW! As of 2022, we now have a Delivered Duties Paid option with a promotional flat rate to our neighbors in Canada.
However, some countries (EU, UK) have passed laws requiring marketplaces with an economic threshold to collect and remit VAT / GST in advance. Sales of Walnut Studiolo products on marketplaces like Etsy have the tax collected up-front, which speeds up delivery and prevents any surprise tax bills. Policies are always changing: this webpage collates Etsy’s international tax collection policies. Thus, customers who would like to pre-pay or pre-calculate VAT/GST are recommended to purchase on our Etsy store. Note that Etsy may not be collecting all customs duties and import taxes.
The new Canada DDP option and our international sales policies are kept up-to-date on our website: https://walnutstudiolo.com/pages/international-shipping
About Walnut Studiolo
Walnut Studiolo crafts original modern designs by hand in our Oregon workshop using only natural materials. We are a family-run company located on the North Oregon Coast. Learn more about us on our website: https://walnutstudiolo.com
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