Sales Tax Information

What Do I Need to Send to IngramSpark to be Exempt from Paying Sales Tax?

Why do You Mention Lightning Source in this Information if I have an IngramSpark account?

Will I be Charged Sales Tax on the Title Setup Fee, Revision Fee, or the Market Access Fee?

Will I be Charged Sales Tax on Print on Demand (POD) Distribution Orders?

What Happens if I do not Submit Updated Sales Tax Documentation as Requested?

What is a Resale Tax Exemption Certificate and am I Eligible?

Can I Get a Refund for Any Taxes Paid Before I Submit My Tax Certificate?

If I Order Books to be Printed and Shipped to an Address in the U.S., Which States Require Sales Tax be Charged, if Tax Exemption Documentation is Not Provided?

I Placed Orders to have Books Printed and Shipped to a State that isn’t One of the 14 in Which IngramSpark is Currently Required to Charge Sales Tax. Will I Still be Affected?

What if I am Claiming an Exemption Based on My Entity Status (Governmental, Educational, Charitable, or Nonprofit Organization)?

I am located in the U.S. but not in Illinois, New York, Pennsylvania, or Virginia, so Why Do I Have to Fill Out Forms for Those States?

Can I Mail or Fax a Copy of my Tax Exemption Certificate to IngramSpark?

Who is Considered a Foreign Publisher?

How Does U.S. Sales Tax Affect a Foreign Publisher?

What is the Resale Affidavit?

I am Tax Exempt and Located in a Country Other Than the U.S. How Do I Submit My Documentation?

My Business is Located in a Country Other Than the U.S. and I Have a Resale Tax Exemption Documentation for One State, Do I Have to Pay Taxes in Other States?

Why Do I Have to Fill Out Forms for Colorado, Illinois, Michigan, New York, Pennsylvania, and Virginia, since I am located in a Country Other Than the U.S.?

Adult Coloring Books UK and EU Restrictions

Where Can I Find Out More about Tax Exemptions?

 

What Do I Need to Send to IngramSpark to be Exempt from Paying Sales Tax?

If you wish to claim an exemption from sales tax on the products and services purchased from IngramSpark and Lightning Source, you will need to submit updated sales tax exemption documentation. You may be exempt from paying sales tax if you are purchasing the products and services for resale or if you are an exempt entity (ex: governmental, educational, charitable, or nonprofit organizations).

Why do You Mention Lightning Source in this Information if I have an IngramSpark account?

Lightning Source is the Ingram business entity that supports the IngramSpark service.

Will I be Charged Sales Tax on the Title Setup Fee, Revision Fee, or the Market Access Fee?

No. Sales tax applies primarily to the printing fees charged for short run orders, drop ship orders or extended service (offset) orders.  

Will I be Charged Sales Tax on Print on Demand (POD) Distribution Orders?

Sales of your book(s) to our retail or library partners, through our global distribution network, are not charged U.S. sales tax.

What Happens if I do not Submit Updated Sales Tax Documentation as Requested?

Without updated sales tax exemption documentation, sales tax will be collected on future printing orders (short run and drop ship) in the states where Lightning Source is obligated. If you updated your sales tax exemption documentation prior to January 29, 2014, you will need to resubmit your information to the Lightning Source/IngramSpark website to qualify for a sales tax exemption.

What is a Resale Tax Exemption Certificate and am I Eligible?

With resale certificates, someone purchasing goods to resell may be exempt from paying sales tax on those items. The tax exemption applies only to the goods to be resold, not other items purchased for use by the business. To claim an exemption based on resale, you must provide a properly completed resale certificate for all states where you are licensed as a reseller.

Can I Get a Refund for Any Taxes Paid Before I Submit My Tax Certificate?

No. Lightning Source/IngramSpark is obligated to collect taxes on all applicable items until tax exemption paperwork is on file. To avoid paying unnecessary taxes, make sure you submit your paperwork within the timeline noted in your email or contact your customer service representative.

If I Order Books to be Printed and Shipped to an Address in the U.S., Which States Require Sales Tax be Charged, if Tax Exemption Documentation is Not Provided?

Currently: California, Florida, Indiana, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, and Washington. This list is subject to change based on tax laws and operational changes within Lightning Source.

I Placed Orders to have Books Printed and Shipped to a State that isn’t One of the 14 in Which IngramSpark is Currently Required to Charge Sales Tax. Will I Still be Affected?

Tax is based on the state where the transaction occurs. With IngramSpark/Lightning Source,

the transaction is deemed to have taken place in the state where the books are being shipped.                                                    

We highly recommend completing the resale and exemption documentation as requested on the IngramSpark website. If IngramSpark is required to register in additional states and/or if sales tax laws change to include services currently not taxable, IngramSpark will have the information already on file for you.

What if I am Claiming an Exemption Based on My Entity Status (Governmental, Educational, Charitable, or Nonprofit Organization)?

If you are claiming an exemption based on being an exempt entity, you will need to provide IngramSpark with the documentation issued to you by the state(s) claiming your exemption. Unlike the Foreign / Home State rules applicable to resale exemption, tax exemption based on being an exempt entity will not typically exempt you from sales tax in other states. Most states require an exempt organization to register in the state before an organization can claim a sales tax exemption.

Documentation required for sales tax exemption based on entity status varies by state. If you are an exempt entity, Lightning Source will review your submitted documentation and notify you if it is not accepted for tax exemption. For questions regarding tax exemption please send an email to tax@ingramcontent.com.

I am located in the U.S. but not in Illinois, New York, Pennsylvania, or Virginia, so Why Do I Have to Fill Out Forms for Those States?

These states require their own state-issued form, as well as the Reseller Affidavit, to be completed to document a “Home State” exemption.

The following items must be completed on each applicable form:

ILLINOIS

  • Line 5 – Check “Authorized to do business out of state”
  • Line 7 – Check part 1
  • Sign and date in Step 5

NEW YORK

  • Complete Part 2 (check Box D)
  • Provide state and registration numbers in the appropriate sections

PENNSYLVANIA

  • If applicable, check the following statement in Box 7: “The purchaser makes no taxable sales/not required to hold a PA Tax License. Property sold in regular course of business.”
  • Sign and date at bottom

VIRGINIA

  • Check Box 1
  • Provide registration number and the state where you are registered
  • Complete address
  • Date and sign

Can I Mail or Fax a Copy of my Tax Exemption Certificate to IngramSpark?

To ensure you have the correct paperwork for all U.S. states in which you are eligible, we highly recommend submitting your exemption documentation through the IngramSpark website. If you are unable to submit your paperwork online, please download the correct paperwork that you receive from IngramSpark and fax it to

If located outside the US: (UK Fax No.) +44 (0) 845 121 4594.

If located in the US: 615-213-4745

Please reference your IngramSpark account number on the form.

Who is Considered a Foreign Publisher?

You are considered a foreign (non-U.S.) publisher or author if your country of domicile/residence is not the United States of America.

How Does U.S. Sales Tax Affect a Foreign Publisher?

  • Sales tax is a transaction-based tax charged upon the sale of most products in 46 U.S. states. Sales tax is a state tax, not a federal government tax, and as a result it is different in each state.
  • Printing fees charged for orders you place through your IngramSpark account ARE taxable in most states unless exempt. See below for documentation requirements for exemption claims.
  • U.S. sales tax only affects you if you place orders with IngramSpark for delivery to a U.S. address.
  • Sales of your book(s) to our retail or library partners, through our global distribution network, are not charged U.S. sales tax.

What is the Resale Affidavit?

The Resale Affidavit is a legal document declaring that you are not registered nor required to be registered for sales tax in any states but that you are a legal business operating in a foreign country and purchasing the products and services from Lightning Source for resale. A Resale Affidavit must be properly completed and submitted to Lightning Source for Resale Exemption rules to apply. The Resale Affidavit is provided through the IngramSpark website and should be used to ensure that all the necessary information is provided.

I am Tax Exempt and Located in a Country Other Than the U.S. How Do I Submit My Documentation?

The IngramSpark website has been enhanced to make it easy to identify states in which you may be eligible for sales tax exemptions.

Instructions

Step 1: Log in to your IngramSpark account at www.ingramspark.com

Step 2: On your dashboard, click “Account”

Step 3: Click the “Tax Information” button on the sidebar menu and then the “Claim US Tax Exemptions” button.

Step 4: Ensure “Yes” is selected and then click “Continue"

Step 5: Select “Claiming exemption based on resale and Business/Organization resides outside of the United States”

Step 6: Select the applicable country from the drop down and input the business identification number issued by the country in which your business is located (ex: in the UK, this would be your VAT number). Based on your selections, we will provide the necessary documents via email. Provide your email address where indicated and select “Send Email.” Once you receive the email print and sign all tax exemption forms. Scan and upload the signed forms to the website via the “Tax Information” page under “My Account” After completing the information requested, you will be provided with the forms for the states in which you are eligible for exemption. Forms must be completed and uploaded to IngramSpark through the “Upload Tax Documents” button by clicking “Accounts” on your dashboard. The button is located at the bottom of the “Accounts” menu.

My Business is Located in a Country Other Than the U.S. and I Have a Resale Tax Exemption Documentation for One State, Do I Have to Pay Taxes in Other States?

There are currently 37 states that accept your foreign reseller exemption as valid resale exemption documentation for drop shipments. This means that if you as a seller have submitted to IngramSpark the necessary paperwork for resale tax exemption, you may also be eligible for resale tax exemption in other states with the completion of a Resale Affidavit. (See “What is a Resale Affidavit?” for more information about Resale Affidavits).

All states that have sales tax other than California, Connecticut, District of Columbia, Hawaii, Massachusetts, Maryland, Mississippi, New Mexico, and Tennessee, allow a “foreign” registration to certify a sale for resale if documented properly.

Six of the thirty-seven states—Colorado, Illinois, Michigan, New York, Pennsylvania, and Virginia—require their own state-issued form, in addition to the Resale Affidavit, to be completed in order to document a “Foreign” exemption. Forms for these states, as well as the Resale Affidavit, can be found in the tax section of the IngramSpark account dashboard. (See “I am tax exempt. How do I submit my documentation?” for more information).

IngramSpark is currently registered to charge sales tax in 14 states, many of which currently recognize “Foreign” or “Home” exemption rules. We highly recommend completing all the resale and exemption documentation as requested on the IngramSpark website, so if IngramSpark is required to register in additional states and/or if sales tax laws change to include services currently not taxable, IngramSpark will have the information already on file for you.

Why Do I Have to Fill Out Forms for Colorado, Illinois, Michigan, New York, Pennsylvania, and Virginia, since I am located in a Country Other Than the U.S.?

These states require their own state-issued form, as well as the Resale Affidavit, to be completed to document a “Foreign” exemption. Please sign and date each form. Please ensure that your name and address is listed as the purchaser on each form and that Lightning Source is listed as the seller. For the general description of products to be purchased from seller, please insert “Products and services provided by LSI”.

 Also, please consider the following items and ensure they are completed on each applicable form:

Colorado

  • In the “Qualifies As” area, please check the appropriate box that describes your business.
  • Please insert your principle country of residence in the “City or State” box.
  • Please insert your ID number from your principle country of residence in the “State Registration or ID Number” box.
  • Sign and date at bottom.

Illinois

  • Line 7 of Step 4 – Check part 1
  • Sign and date in Step 5 Michigan
  • Section 2 – Check box 1
  • Section 3 – Check box 10, enter your country of residence, your id number from that country, and the words ‘Foreign Reseller”.
  • Section 4 – Complete, sign and date.

Michigan

  • Section 2 – Check box 1
  • Section 3 – Check box 10, enter your country of residence, your id number from that country,and the words ‘Foreign Reseller”.
  • Section 4 – Complete, sign and date.

 New York

  • Check “Blanket certificate”
  • Complete the Purchaser information line (ex. Publishing, books)
  • Complete Part 2 (check Box D) and enter your country of principal residence in the “state/jurisdiction” line and your Foreign ID number in the “registration” line. •Sign and date at bottom

 Pennsylvania  

  • Check “State or Local Sales and Use Tax “ at top form
  • Check “Blanket” box above name of Seller
  • Check box 3 and state (See Attached) in the “License Number” line. The affidavit has this information.
  • If applicable, check the following statement in Box 7: “The purchaser makes no taxable sales/not required to hold a PA Tax License. Property sold in regular course of business.”
  • Sign and date at bottom

Virginia

  • Check Box 1
  • Provide your country of residence and your ID number from that country in the field for “Certificate of Registration No.”
  • Please complete the line “Kind of business engaged in by dealer”. (Publishing, book store, ….)
  • Complete address
  • Date and sign

Adult Coloring Books UK and EU Restrictions

Her Majesty's Revenue and Customs in the United Kingdom has determined that UK sales tax (referred to as VAT) must be charged on coloring books that are intended for adult use only. In the UK and Europe, if the word adult is in the coloring book title or the subject category, they are considered stationary. We are not set up to collect VAT tax for stationary and for this reason, we removed all adult coloring book titles from POD distribution in the UK and Europe.

Further information on the current HMRC VAT rules for printed books can be found at https://www.gov.uk/government/publications/vat-notice-70110-zero-rating-of-books-and-other-forms-of-printed-matter/vat-notice-70110-zero-rating-of-books-and-other-forms-of-printed-matter

These changes do not apply to sales tax rules in the US or those outside of the United Kingdom and European Union.

Where Can I Find Out More about Tax Exemptions?

For more information on tax exemptions and eligibility, consult your tax adviser or the Department of Revenue for the states in which you conduct business.

 

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