How many times have you ordered boxes of books from CreateSpace or IngramSpark to sell at an event? Did you pay sales tax on them? Oops! You have the right to get those books tax-free, just like any other wholesale product, because you're going to collect tax when you sell them. Don't get double-taxed. Obtain a resale certificate (also called reseller's permit) and upload it to CreateSpace and IngramSpark and they won't charge tax. Here's how:
—First, obtain a resale certificate
—Claim tax exemption status at CreateSpace by emailing them your permit
—Claim tax exemption status with IngramSpark by uploading your permit to your account
—Order your books
Obtain a Resale Certificate
Start by doing a Google search for resale certificate yourstate to find the right governmental institution. Here's what you're going to need. [I got this handy checklist from BookWorks' Legal Expert Helen Sedwick's newly updated Self-Publisher's Legal Handbook, 2nd Edition.]
—SSN and EIN
—Driver license or ID
—Your business name (publishing imprint)
—State Employer Identification Number (SEIN), if any
—NAICS code 511130, Book Publishing, or for publishing online only, use 519130
—SIC 2731, Book Publishing
—Name and account number of your merchant credit card processor
—Name, address, and phone number of your bookkeeper (or you)
—Estimate of monthly sales of direct sales of print books.
Sedwick's book has lots and lots more information about taxation and what you need to set up your publishing business legally. This is one of the top books I recommend to authors.
Claim Sales Tax Exemption at CreateSpace
Here are the steps for claiming tax exemption as a reseller on CreateSpace.
-Find the CreateSpace Direct link.
—Navigate to the CreateSpace website.
—Hover over the Books tab.
—Under Resellers and Libraries, click CreateSpace Direct.
2. The CreateSpace Direct Reseller Application will appear, as shown below. Fill out the simple form and click Submit.
3. Then, email a PDF of your certificate to email@example.com. Make sure to include your CreateSpace Member ID in the subject line.
If you don't send an email, CreateSpace will contact you in a couple of days to remind you. A day or two after you email them the resale certificate, you'll receive an email like this:
As explained in the email, you'll no longer pay sales tax on the books you order from CreateSpace.
Claim Sales Tax Exemption at IngramSpark
To upload your resale certificate to IngramSpark, follow the instructions below.
1. Log in to your account, navigate to the Account tab, and click Tax Information.
2. Click the Upload Tax Document button, lower right.
3. Claim an exception by clicking the Yes radio button
4. Click the radio button Claiming exception based on resale.
5. Drag and drop or click Choose File to upload your PDF resale certificate.
6. Choose Reseller Affidavit of Sales Tax Registrations from the dropdown menu.
7. When it's finished uploading you'll see your Reseller Affidavit listed in your tax documents.
That's it! Now, when you order books, you won't be taxed.
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