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Why Am I Being Charged Sales Tax for an Out-of-State Seller?
Why Am I Being Charged Sales Tax for an Out-of-State Seller?

Understanding Online Sales Tax on ShareGrid Purchases

Dave avatar
Written by Dave
Updated yesterday

When you buy from an out-of-state seller on ShareGrid, you might notice sales tax applied to your transaction. Here's why:

The Impact of South Dakota v. Wayfair, Inc.

What Happened?

The Supreme Court case, South Dakota v. Wayfair, Inc., changed how online sales are taxed. States can now tax sales from out-of-state sellers, impacting e-commerce platforms like ShareGrid.

How Does This Tax Work Differently?

In physical stores, tax is based on the store's location. Online, it’s different:

  • Marketplace Facilitator Taxes: These taxes apply based on the buyer’s location, not the seller’s.

  • Buyer-Based Tax Calculation: When you purchase on ShareGrid, the tax is determined by where the item is shipped, not where the seller is located.

This means the sales tax you see on your ShareGrid purchase is based on your location.

Need Help?

We hope this helps clarify things. If you have any questions, our support team is ready to help.

DISCLOSURE: This communication is on behalf of ShareGrid Platforms, LLC or its affiliates (“ShareGrid”). This communication is for informational purposes only and contains general information only. ShareGrid is not rendering legal, financial, accounting, business, tax, or other professional advice or services by means of this communication. This communication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your interests. You should consult a qualified professional advisor. ShareGrid does not assume any liability for reliance on the information provided herein.

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