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Understanding US Sales Tax
Understanding US Sales Tax

This article explains your US sales tax obligations and how to set up a sales tax exemption.

Daniela avatar
Written by Daniela
Updated over a month ago

What is U.S. Sales Tax?

Sales tax is a levy imposed by a governing body on the sale of specific goods and services. This tax is typically collected from the final consumer, requiring online sellers to charge sales tax on finished products. Platforms like Etsy and Amazon automatically manage sales tax collection and remittance, while storefronts such as Shopify offer programs to handle remittance to individual states.

Transactions between your business and Artelo are classified as business-to-business (B2B). Maintaining a valid resale certificate can exempt you from sales tax on orders between your business and Artelo. Currently, Artelo has nexus in Florida and Kentucky. This means businesses outside these states or internationally are exempt from sales tax on transactions with Artelo. However, businesses based in Florida or Kentucky must pay sales tax on these transactions unless they have a valid sales tax exemption in their respective state.


How can you receive a sales tax exemption?

Companies working with Artelo are recommended to procure a resale certificate from their respective states. To upload your sales tax exemption, access your Artelo account, go to Settings, navigate to Tax Details, and upload your state's exemption certificate. After your resale certificate is approved, no sales tax will be charged.

Artelo has nexus

Artelo doesn't have nexus

You have nexus

Artelo charges you tax unless you submit a resale certificate

You charge your customer tax

Artelo doesn't charge you tax

You charge your customer tax

You don't have nexus

Artelo charges you tax unless you submit a resale certificate and charge your customer tax

Artelo doesn't charge you tax

You don't charge your customer tax


Rip Technologies LLC, operating as Artelo, and its affiliates do not offer tax, legal, or accounting guidance. The content presented here is solely informational and should not be considered a source of tax, legal, or accounting counsel. You must seek advice from your tax, legal, and accounting advisors before proceeding with any transactions.

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