The SALTcast

The Complicated Case of Subscription Products

Ryan Johnson and Daniel M. Peisner, CMI

Have you ever purchased a subscription for clothes or maybe you subscribed for monthly snack packages? If not these few there are a wide range of items from cosmetics, toys, and shaving products. Have you ever wondered how sales taxes are collected on items like that? Or wonder if those items are even taxable? Let's be honest you probably aren’t like me and check whether or not sales tax was charged on all of my online purchases so it's probably safe to say it has never crossed your mind. Though if you are selling items like this it should be on your mind. Sales tax collection can get complicated when it comes to the taxability of your products.


Additional Questions Answered:

What is a subscription product service?

How are the items in the boxes taxed?

What if you pay the annual fee for a discount?

What if you are paying monthly for a group membership?

What if with the group membership they send me quarterly free items?

Do I need exemption certificates?

How do I know whether or not my products are taxable?


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