Sales Tax

ProDPI Sales Tax 101

We currently have a sales tax nexus in the following states: California, Colorado, Florida, Illinois, Minnesota, Missouri, Texas, and Wisconsin. When we ship anywhere within these states, we are required to collect sales tax.

Note: The shipping address is what matters. If your studio is located outside one of these states, but you want to drop ship it to a client within the taxed region, sales tax will be collected. All of these states define the taxable point of the transaction for orders shipped by FedEx/USPS to be the location FedEx/USPS delivers the order. We will calculate the required sales tax for the specific ship to address on each order submitted.

Canada Sales Tax

All shipments to the Canadian provinces are done with ProDPI as the importer of the product. This means we must collect GST or HST on your invoice based on the value of the products ordered. The exact GST or HST amount will vary depending on the province the products are being shipped to. Shipments will be delivered to the recipient with no taxes or fees due on delivery.

TBD Sales Tax

When your confirmation email says “TBD” for sales tax, this means we have not been able to validate your shipping address. We will be in touch with you if we need further validation.

Drop Shipping Resources

The following collected resources will further explain how each state handles shipping from a vendor with nexus to a client in that state.

California – Publication 121, Drop Shipments
Illinois – Title 86, Part 130, Section 130.225
Minnesota – Sales Tax Fact Sheet 110
Texas – Local Sales and Use Tax Bulletin 2/2009

Resale Certificates

Send us a valid resale certificate for each state that your business is registered in and we will not collect sales tax on orders shipped to those states.

Step 1. Download + Complete

California Resale Certificate (BOE-230)

Colorado Exemption Certificate (DR 0563)

Florida Annual Resale Certificate (DR-13)

Illinois Certificate of Resale (CRT-61)

Minnesota Certificate of Exemption (ST3)

Missouri Exemption Certificate (149)

Texas Resale Certificate (01-339)

Wisconsin Resale Certificate (S-211)

Step 2. Sign + Send

Please email or fax your permit to:
tax@prodpi.com