Sales Tax Policy

1. Introduction

At VIP Parts, we are committed to complying with all applicable sales tax laws and regulations. This Sales Tax Policy outlines how sales tax is applied to transactions on our marketplace and clarifies the responsibilities of both buyers and sellers.

2. Marketplace Facilitator Role

Following the South Dakota v. Wayfair, Inc. decision, VIP Parts operates as a marketplace facilitator in all states where we meet the economic nexus thresholds. As a marketplace facilitator, we are responsible for calculating, collecting, and remitting sales tax on taxable sales made through our platform.

We utilize a dedicated tax service provider to manage sales tax calculations, nexus compliance, and remittance on our behalf. This ensures accurate and timely handling of all applicable sales taxes, allowing sellers to focus on their business operations without the burden of tax compliance.

3. Sales Tax Collection

3.1 For Buyers

Sales tax is calculated based on the shipping destination of the product and the applicable tax rates in effect at the time of purchase. The total sales tax will be displayed at checkout before you complete your order.

Tax-Exempt Purchases: If you are making a tax-exempt purchase, you must provide a valid exemption certificate prior to completing your purchase. Please contact [email protected] to submit your documentation.

3.2 For Sellers

As a marketplace facilitator, VIP Parts handles the collection and remittance of sales tax on your behalf in all states where we have established economic nexus. This means:

• No Need to Collect Sales Tax: You are not required to collect sales tax from buyers for transactions processed through our platform.
• Focus on Selling: Concentrate on listing and selling your products without worrying about tax compliance.

Obligations in States Without Marketplace Facilitator Laws: If there are states where VIP Parts is not required to collect sales tax, you are responsible for complying with applicable laws, including collecting and remitting sales tax as required.

4. Determining Sales Tax

Sales tax is determined based on the following factors:

• Shipping Destination: The state and local tax rates of the shipping address.
• Product Taxability: Whether the product is taxable in the destination state.
• Economic Nexus: Whether VIP Parts has a tax nexus in the destination state based on economic thresholds.

We use advanced tax calculation software provided by our tax service partner to ensure accurate and up-to-date tax rates are applied to each transaction.

5. Economic Nexus and Obligations

VIP Parts monitors sales thresholds in all states to determine where we have an economic nexus. When we meet or exceed a state's threshold, we register to collect and remit sales tax in that state.

6. Exemption Certificates

Buyers claiming a tax exemption must provide a valid exemption certificate for the state where the product is shipped. To submit your certificate:

• Email a copy of the certificate to [email protected] before placing your order.
• Include your account details and any relevant information.

We will review the documentation and, upon approval, update your account to reflect your tax-exempt status.

7. International Sales

VIP Parts now supports international transactions, allowing sellers to reach a global market seamlessly. Our advanced tax tools handle sales tax calculations and remittances for international sales, ensuring compliance with various international tax laws and regulations.

International Sales Tax Handling: When conducting sales outside the United States, our tax service provider manages the necessary tax calculations and remittances based on the destination country's tax laws. This enables you to expand your business globally without the complexities of international tax compliance.

Supported Countries: Currently, VIP Parts supports transactions in the following countries:

• Canada
• Mexico
• Germany
• Australia
• France

We continuously expand our international support to include more countries, enhancing your ability to sell globally.

8. Seller Responsibilities

While VIP Parts handles sales tax collection and remittance in states where we have economic nexus and international transactions, sellers are still responsible for:

• Providing Accurate Information: Ensure product listings are accurate and up-to-date to facilitate correct tax calculations.
• Understanding Tax Obligations: Stay informed about tax laws in states or countries where VIP Parts is not handling sales tax on your behalf.
• Not Charging Sales Tax to VIP Parts: Do not charge sales tax to VIP Parts or buyers for transactions where we are responsible for tax collection.

9. Buyer Responsibilities

Buyers are responsible for:

• Paying Applicable Sales Tax: Pay all sales taxes assessed at the time of purchase unless a valid exemption applies.
• Providing Exemption Documentation: Submit valid exemption certificates prior to purchase if claiming tax-exempt status.
• Use Tax Compliance: If sales tax is not collected on a taxable purchase, you may be responsible for reporting and remitting use tax to your state or relevant authorities in your country.

10. Changes to This Policy

We may update this Sales Tax Policy periodically to reflect changes in laws or our business operations. Updates will be posted on this page with an updated effective date.

11. Contact Us

If you have questions or need assistance regarding sales tax, please contact us:

VIP Parts, Inc.
PO Box 34084
Omaha, Nebraska 68134
Email: [email protected]
Phone: (402) 659-9206

12. Disclaimer

This Sales Tax Policy is for informational purposes only and does not constitute legal or tax advice. Tax laws are complex and vary by jurisdiction. You should consult a qualified tax professional or attorney for advice specific to your circumstances.