If you are a non-profit organization utilizing Revv’s Storefront it’s important to understand if you are sales tax exempt or not. Most non-profit organizations will not need to worry about sales tax for an online store, as long as the donations received for the merchandise support the tax exempt purpose.
Below are a few key points to be aware of when setting up a storefront:
- 501(c)(3) Status - Have you applied to the IRS for your organizations 501(c)(3) status and have you been accepted? This will open you up to more tax exemption opportunities.
- State by State: Check your State’s sales tax policy as it pertains to non-profit exemptions. Sales tax Nexus will vary state by state for non-profits, when purchasing taxable goods to help further the organization's mission.
- Stay Mission Related: When receiving donations in exchange for a product, make sure the money collected clearly goes towards your organization's mission for which you were granted tax exempt status for.
- Reporting: While Revv provides its clients reporting on their Storefront, we do not provide receipts showcasing tax deductible donations for organizations. This should be clarified when checking your State’s sales tax laws and tracked internally.
This article is meant to provide general direction, Revv suggests you speak with a tax consultant to get specific advice on your organization if you have questions.