How do taxes work on Swappa?

Based on current US state tax laws, Swappa is now required to calculate, collect, and remit sales tax on behalf of sellers for transactions destined to states where marketplace facilitator taxes apply. Swappa keeps a list of these states on Swappa's primary taxes page here.

Please note that Swappa does not charge any additional fees for calculating taxes, and the collection process applies to all sales on Swappa regardless of where the seller is located, as this is generally calculated according to the buyer’s shipping address. However, some states may calculate taxes based on where the seller is located.

Applicable taxes will also apply to listing add-ons such as protection plans and accessories. For states with facilitator taxes that also apply to freight costs, express shipping payments will have the proper tax applied if selected.

If you happen to live in a state that does not have marketplace facilitator tax legislation, but still need to charge a sales tax for same-state buyers, simply reach out to us using the help form, and team members can configure your account with legacy sales tax option.

Once the sales tax option is enabled for your account, you can configure the specific state and percentage directly in your profile.


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