Fave Marketplace
As an online marketplace, we understand that tax and VAT are complicated processes to tackle. It is extremely important to us that we stay compliant and also support you, Fave sellers, where we can. Therefore, Fave is partnering with lead e-commerce accounting firms in both the U.S. and the EU to assist us. You will find the latest on how you will be affected by sales tax and VAT on the Fave Marketplace below.
Selling to buyers in the US:
- As a seller, you do not need to worry about sales tax. If there are any changes, we will let you know.
- Sales tax will ONLY be charged on purchases made in the U.S. on the following states: California, Texas and Nevada.
- Sales tax will not be charged on purchases made on the other states, until Fave hits the economic nexus threshold for the states the sales are made in.
- Fave will be remitting/filing sales tax for the states that hits the economic nexus - since we are just starting out, this is not something you or we will need to worry about for the near term
- We are partnering with U.S. accountants that are experts in e-commerce to help us register, prepare and file sales tax where necessary
- Our U.S. accountants will also help us monitor when we are near the economic nexus threshold, and will help us ensure we have the proper sales tax charges for your respective sales in the near future on the Fave marketplace.
- Please note: Sales made outside of the Fave platform is still sellers’ responsibility to collect sales tax where they have nexus (physical presence or economic nexus)
Selling to buyers in the UK/EU:
- Fave does fall under the definition of an OMP under UK/EU laws
- If you are a NOT seller based in the UK or EU, Fave will be responsible for filing VAT/OSS for your sales
- If you are a seller based in the UK or EU, you are responsible for your own VAT/OSS filing
- We are partnering with UK accountants that are experts in e-commerce in the UK/EU to help us register, prepare, and file VAT/OSS where necessary.