Newegg Explains Sales Tax and Tax-Exemption Requirements
Newegg collects sales tax in states where it is legally required to do so. Tax-exempt organizations and resellers must submit and maintain valid exemption documentation.
What are the key facts?
- 1Newegg collects sales tax in states where it is legally required to do so
- 2Some orders may not be charged sales tax
- 3Tax-exempt organizations and resellers must submit valid exemption documents
- 4Sellers and B2B buyers must maintain exemption documents
What happened?
Newegg's official knowledge base outlines requirements for sales-tax collection and tax exemptions. In states where Newegg is legally required to collect sales tax, it charges sales tax on orders shipped to those states. Orders may not be taxed when the destination state has no sales tax, when a qualifying tax-free shopping period applies, or when the buyer's account has passed a valid tax-exemption review.
Tax exemptions primarily apply to eligible tax-exempt organizations and resellers. Sellers and B2B buyers must submit and continuously maintain valid exemption documentation in their accounts. The policy has significant implications for Marketplace sellers of computers, components, servers, networking equipment, and office equipment because tax treatment may differ among wholesale customers, reseller customers, and individual consumers.
Cross-border sellers should also verify the shipment state, the buyer's tax status, the order tax amount, and invoice information to avoid settlement or customer purchasing issues caused by expired or inconsistent documentation.
What does this mean for cross-border sellers?
Newegg collects sales tax on orders shipped to states where collection is legally required, but an order may not be taxed when the destination state has no sales tax, a tax-free shopping period applies, or the buyer passes a valid tax-exemption review. Sellers of computers, components, servers, networking equipment, and office equipment should maintain exemption documents and ensure that the shipment state, buyer tax status, order tax amount, and invoice information are consistent.
What should sellers do now?
- 1This week, review the primary shipment states and order tax treatment for your Newegg store. Build a checklist by destination state, tax-free shopping period, and buyer exemption-review status, and retain one traceable record for each active category.VAT quick lookup
- 2This week, create a tax-exemption document register for tax-exempt organizations and reseller customers. Verify the submission status and validity of documents in the Newegg account, and create a separate follow-up list for missing or expired documents.
- 3This week, sample Marketplace orders for computers, components, servers, networking equipment, and office equipment. Compare the shipment state, buyer tax status, order tax amount, and invoice information for each order, and produce a list of inconsistent orders.