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Avoid Sales Tax Double-Dip: File a Resale Certificate

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… [Read More]

Sales tax tips for authors by Carla King for BookWorks.com

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?How to obtain a resale certificate for authors by Carla King for BookWorks.com 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

Sales tax tips for authors by Carla King for BookWorks.com

This is an essential for the publisher's bookshelf.

—Driver license or ID

—Email address

—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

—Bank information

—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.

How to obtain resale certificate for authors by Carla King for BookWorks.com

2. The CreateSpace Direct Reseller Application will appear, as shown below. Fill out the simple form and click Submit.

How to obtain resale certificate for authors by Carla King for BookWorks.com

3. Then, email a PDF of your certificate to info@createspace.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:

How to obtain resale certificate for authors by Carla King for BookWorks.comAs 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.

How to obtain resale certificate for authors by Carla King for BookWorks.com

2. Click the Upload Tax Document button, lower right.

How to obtain resale certificate for authors by Carla King for BookWorks.com

3. Claim an exception by clicking the Yes radio buttonHow to obtain resale certificate for authors by Carla King for BookWorks.com

4. Click the radio button Claiming exception based on resale.

How to obtain resale certificate for authors by Carla King for BookWorks.com

5. Drag and drop or click Choose File to upload your PDF resale certificate.

How to obtain resale certificate for authors by Carla King for BookWorks.com

6. Choose Reseller Affidavit of Sales Tax Registrations from the dropdown menu.

How to obtain resale certificate for authors by Carla King for BookWorks.com

7. When it's finished uploading you'll see your Reseller Affidavit listed in your tax documents.

How to obtain resale certificate for authors by Carla King for BookWorks.com

That's it! Now, when you order books, you won't be taxed.

(See alsoA Free EIN Simplifies the Business of Self-Publishing)


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2 thoughts on “Avoid Sales Tax Double-Dip: File a Resale Certificate”

  1. Missy says:

    Very informative.Would I still have to pay taxes to Ingram Spark if I am not going to sell the books,just use them for reviews or my own use?

  2. Carla King says:

    Good question. I believe this kind of printing is a business expense for advertising and promotion but please double check that with your tax pro.

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