When you sell on the Trellus Marketplace, Trellus acts as the marketplace facilitator for all orders placed on bytrellus.com.
That means:
- Trellus automatically collects applicable sales tax.
- Trellus collects sales tax from the customer at checkout.
- Trellus remits those sales taxes to the appropriate taxing authority on your behalf.
- You do not need to configure sales tax rates or manually collect sales tax for Marketplace orders.
You remain responsible for your normal business obligations such as income taxes, bookkeeping, and any taxes unrelated to Marketplace sales.
How Are Taxes Collected on Marketplace Orders?
Trellus automatically calculates applicable sales tax at checkout for Marketplace orders placed on bytrellus.com. We collect those taxes from the customer and remit them to the appropriate taxing authority on your behalf. You do not need to configure tax rates or manually collect sales tax for Marketplace orders.
What is the process for how money is collected and distributed?
When a customer places an order, Stripe Connect places a hold on the customer’s account for the grand total that the customer pays at checkout, including taxes, tip, and delivery fees.
When you accept the order, the charge is captured and the funds are distributed as follows:
The following amounts are transferred to Trellus’ Stripe Connect account and listed as an "application fee” in your Stripe dashboard:
- Non-refundable credit card processing fees collected by Stripe ($1.05 + 2.9% of the total charge, including tip, taxes, and delivery fees). These fees are deducted at the time the charge is captured.
- Applicable sales tax collected from the customer, which Trellus remits to the appropriate taxing authority on your behalf.
- Trellus Marketplace commission (10% of item subtotal)
- Delivery fees paid by the customer
- Driver tips paid by the customer for delivery orders
The following amounts are transferred to your Stripe Connect account, and paid out to your connected bank account weekly:
- Merchant tips for pickup orders
- The remaining balance of the total paid by the customer after the above fees.
- If a Trellus-funded discount code was applied to your order, you will be reimbursed the amount through a separate transfer to your Stripe Connect account (See Understanding Discounts and Discount Codes)
All of your Order Payments and Stripe Connect Payouts can be viewed in the Financials page on the dashboard. To learn more about that please see How and When Will I Get Paid Out For The Sale?
Do I need to set up sales tax with my state?
No. Trellus automatically calculates applicable sales tax for Marketplace orders based on Stripe’s product tax codes and deducts them from your order.
Do I need to remit sales tax?
No. Trellus remits the sales tax collected on Marketplace orders on your behalf.
Will sales tax appear in my Stripe payout?
No. Sales tax collected from customers is transferred to Trellus so it can be remitted to the appropriate taxing authority. It is not included in your merchant payout.
Does this apply to all of my sales?
This information only applies to Marketplace orders placed on bytrellus.com . Sales made through your own website, POS system, or other sales channels may have different tax obligations.
What am I responsible for?
You're still responsible for your overall business tax obligations (income tax, business licensing, etc.). If you have questions about your specific tax situation, consult a tax professional.
For more info on fees, please see Understanding fees on the Trellus Marketplace
To learn why you need to keep a credit card on file, please see Why do I have to put in my credit card?