Hello!
I am currently running a crowdfunding campaign through Backerkit. Im mostly seeking some assistance in figuring out the logistics of sales tax for a project like this and can’t find a tax expert to ask that’s not deeeeeply out of budget.
Here’s a couple things to note:
• the project is USA based, but our backers are USA and international.
• I live in Oregon, a state without sales tax - so this is very foreign to me.
• after the cost of production, this is a charity project. All excess funds will be donated, so there’s no profit involved.
• backerkit does not remit taxes for you, which is why I’m trying to figure this out myself.
• the campaign is already live, but I can add sales tax and VAT when it’s time to charge everyone ( which doesn’t occur until the campaign ends ).
• the campaign has seen WILD success beyond what I expected, which is why I’m worrying about remitting appropriately. We are over 10k in predicted sales presently.
• they are technically purchasing goods. A book and merchandise along with it, even if the funds are going to charity.
Basically- I need to know a few things. Should I be charging sales tax on a project like this? How do I go about remitting sales tax for a national + international project like this? I have heard it depends on whether or not you meet a threshold for a certain state - so should I charge sales tax regardless and then remit as necessary if I reach thresholds in certain places? Would I refund the sales tax I didn’t “need” after?
I don’t know. Sales tax is so foreign to me.
If anyone can direct me to a place for assistance that will charge me less than 400$ I’d be super appreciative. I’ll doing this part out of pocket, so trying not to go completely broke to figure this out.
Any advice helps!