When fees are subject to sales tax

In some US states, District is required to charge sales tax on the transaction fees charged by marketplaces we host (for example, marketplace commission). This tax is on marketplace fees, not on the items you sell.

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What fees sales tax can apply to

Sales tax may apply to:

• Marketplace commission fees

• Subscription service fees

• Payment processing fees

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Where we charge tax on District’s fees

District charges sales tax on some or all of the fees above for sellers located in the following states:

• CT, DC, HI, MD, NM, NY, OH, SD, TX, WA, WV

These locations are set by law and may change over time. Your payout details will show tax lines where this applies.

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Important note

This article is general information, not tax advice. Every seller’s situation is different. If you have questions about how this applies to you, please talk with a tax professional.