Sales Tax on SidelineSwap

A 2018 Supreme Court decision resulted in new sales tax laws for online marketplaces, including SidelineSwap. Previously, only Sellers with a physical presence in a state were required to collect and remit sales tax on orders shipped to customers in that state. Now, SidelineSwap is required by law to collect and remit sales tax for Sellers in many states. 

Here's what you need to know:

• For applicable transactions through our Service, SidelineSwap will be responsible for calculating and collecting sales taxes from Buyers. 
• Sales tax is collected on behalf of Sellers and SidelineSwap will remit that sales tax to each state. 
• The initial list of states and effective dates are below. Additional states may be added to this in the future.

Seller tax responsibilities may still include paying sales tax on SidelineSwap sales to Buyers in other states not listed above and/or paying income tax on SidelineSwap sales. 

Frequently Asked Questions

As a Buyer, why did I get charged sales tax?

SidelineSwap is now required to charge and collect sales tax in many states. Sales tax can vary per order due to several factors, as outlined below. Buyers will see the sales tax itemized during the checkout process, prior to submitting an offer or payment. 

How is sales tax calculated?

Sales taxes will be assessed on items purchased on SidelineSwap that are shipped to a U.S. address in one of the applicable states in the list below. The amount of sales tax charged on an order is based on a number of factors including, but not limited to:

• Type of item purchased
• Buyer’s delivery address
• Seller’s return address
• Shipping costs

Alaska does not impose a state level sales tax, however SidelineSwap is required to collect sales taxes in certain Alaska local jurisdictions that have adopted the Alaska Remote Seller Sales Tax Commission Uniform Code. For more info, read here. 

What do SidelineSwap Buyers and Sellers need to do differently after the effective dates?

Once SidelineSwap starts to collect tax in the above states, there is no action required by Buyers and Sellers, and there will be no charges or fees for SidelineSwap to automatically calculate, collect and remit sales tax.

As a Seller, how does this impact my sales tax reporting?

Starting on the effective dates for each state listed above, most Sellers do not have to collect and remit sales tax for SidelineSwap orders delivered to Buyers located in those states. SidelineSwap will calculate, collect, and remit sales tax on behalf of Sellers on a regular basis. In Illinois, however, Sellers may still have local tax obligations that SidelineSwap will not collect and remit on your behalf. Please contact your DOR and/or tax professional for assistance. 

Are state sales tax holidays observed on SidelineSwap?

SidelineSwap does observe states’ sales tax holidays. SidelineSwap will not charge applicable sales tax on these dates to the extent that the law exempts the specific item that is purchased.

As a Buyer, why was a different sales tax estimate displayed for my offer as compared to the completed transaction?

Sales tax on completed offers may vary from the estimated tax amount shown at the time the offer is made due to several factors such as:

• Final offer price
• Delivery address
• Tax rates