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Market America Sales Tax Policy
CHAPTER SIXTEEN: PRODUCT SALES AND DISTRIBUTION
SEC. 3 SALES TAX
Some Market America products may be subject to sales tax in the states in which they are sold at retail. The tax is calculated on the retail sales price of non-exempt products.
(A) Exempt Status:
(1) United States/U.S. Territories: To avoid having Market America charge sales tax on orders, distributors must apply for an appropriate Sales Tax ID and forward a copy of the Sales Tax License, Resale Certificate, and Market America Sales Tax Agreement form to the company. Sales tax is based on three factors: the shipping address, whether the paying distributor has appropriate documentation on file with Market America, and the taxability of the product/service itself. Note: In some states, distributors may not be eligible to obtain a Resale Certificate (e.g. California distributors are not permitted to obtain sales tax documentation and are required to remit sales tax to Market America, due to state mandate).
(a) To avoid having Market America charge sales tax on an order, the paying distributor must have appropriate sales tax documentation on file with Market America for the state/territory to which the product is being shipped.
(b) If the paying distributor does not have appropriate sales tax documentation on file with Market America for the state/territory to which the product is being shipped, then taxability will depend on what is considered taxable in that particular state/territory.
(c) In some states/territories, shipping and/or the administration fee is considered taxable.
(d) The ID number and name on the sales tax documentation must coincide with the ID number and name of the distributorship. If distributors change their ID number and/or name, they need to update their sales tax documentation as well. |
(2) Canada: Distributors residing in Canada are completely responsible for collecting, remitting, and reporting their own sales tax and GST, where applicable; therefore, they should not submit any sales tax documentation to Market America.
(B) Administration Fee:
(1) United States/U.S. Territories: For distributors who do not have appropriate sales tax documentation for the state/territory to which an order is being shipped, an administration fee will be charged. The administration fee is based on the suggested retail price (or distributor cost for items/services that have no suggested retail price) of the total order, regardless of the taxability of individual items on the order. Note: If the paying distributor does not have appropriate sales tax documentation on file and sales tax is charged on any item on the order, including if sales tax is charged only on the administration fee itself, then the administration fee is based on the suggested retail price of the total order.
(2) Canada: Canadian distributors are completely responsible for collecting, remitting, and reporting their own sales tax and GST, where applicable, and are automatically charged an administration fee on all orders being shipped to Canada.
(C) Compliance: Each distributor shall comply with all state, provincial, and local taxes and regulations governing the sale of
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