Taxes are complicated for everyone, but they can be especially complicated for small business owners selling online. This article should help unravel any remaining mysteries about how taxes relate to your BloomNation account.
The first main point to understand is that there are potentially two places you can reach a customer through BloomNation: the BloomNation Marketplace (found via BloomNation.com) and your Premium Site powered by BloomNation if you have one. Each handles taxes slightly differently.
For orders placed through bloomnation.com:
BloomNation is responsible for collecting and remitting all taxes when your customers order through the Marketplace (BloomNation.com). There will not be a tax field on these orders when they are sent to you.
For orders placed on your Premium Site powered by BloomNation or via your Dashboard POS:
You are responsible for remitting taxes on orders placed on your site or submitted through your dashboard Point-of-Sale system.
Remember, BloomNation cannot and will not provide specific tax advice. Please research your local laws. We encourage you to consult with an accountant or tax professional as needed.
How do I enter or update my tax rate?
- Log in to your Dashboard.
- Click Profile.
- Click Tax Rate.
- Enter your local tax rate in decimal format. (e.g., enter "9.5" if your rate is 91/2%.)
- This amount should be the same tax rate you use to sell items in-person.
- Please research your local laws to determine if you should charge tax on delivery. Our team cannot provide tax advice and, as a result, are prohibited from making this decision for you.
- Remember to press "Save" at the bottom of the page!
Once you have your tax rate set, all you need to worry about is tracking and remitting the sales tax that you collect. Go to the Orders tab to download a spreadsheet of your sales records, and read the Payouts tab article for more information about how to keep your books straight.
Should I expect a W-2 or 1099 from BloomNation?
US law requires payment processors such as BloomNation to send and file a 1099-K tax form, which reports the total gross sales income you received during the last calendar year, if you meet the following conditions:
- You had $20,000 USD in sales processed by BloomNation during the calendar year.
- You had 200 or more payments processed by BloomNation during the calendar year.