Simplifying your Business: Wholesale Tax Update

Since updating our Think Goodness platform to Shopify, Brand Partner Personal Discount orders have been displaying two lines for taxes, which has caused a significant amount of confusion and frustration. In addition, many of you use your Personal Discount Code when you purchase items for self-consumption, to gift, or to use as samples on your table display. Currently, even when you purchase items for yourself, they count as income, but often times, they aren't items you're selling.

To simplify and to better align with the Shopify platform, we are updating the way taxes are calculated for your orders based on the product price paid.

What does this mean for you? 

As a Brand Partner, you must choose to place your order in one of the following ways:

Option 1: Personal Orders

Brand Partners who make purchases at ThinkGoodness.com and use their assigned personal discount code at checkout will pay taxes based on the subtotal of the order, rather than the retail value of the products purchased. Consider this like any other time you purchase an item online that has a discount or is on sale. Your tax is charged based on the total sale price of the item.

 
Please note, there is no commission earned on orders placed by Brand Partners when they use their personal discount code.

Option 2: Commissionable Orders

Brand Partners who make purchases at Thinkgoodness.com and do not use their assigned personal discount code at checkout will receive a commission on that order and will be taxed on the subtotal of the order.

Please note, commission is ONLY paid to Brand Partners when attached customers place an order or when a Brand Partner places an order without their assigned personal discount code.

Option 3: Become Tax Exempt 

If you prefer to become tax exempt, you must obtain a seller’s permit or Sales Tax License. Contact your State Department of Revenue, county, and city to learn how to obtain your permit. Every jurisdiction is different, and you may only need to get a permit from the state, not from the city or county.

Once you have the seller’s permit, submit a copy to us filling out the seller permit form here. After the process is completed, your orders will be considered tax exempt, and you will be responsible for reporting and paying any applicable taxes. Please refer to the FAQs for additional information.

Brand Partners who conduct large events and place substantial orders should either obtain a seller’s permit and become tax exempt OR purchase your orders retail, at which time retail sales tax is collected and paid by Think Goodness. If you are a business owner and have a seller’s permit, and want to be tax exempt, please fill out the form here.

Please note that any commissionable orders placed by the Brand Partner or customers will be reported as income, regardless of tax-exempt status. A tax form may be generated if the commissions exceed $600 in a calendar year.

This update is in effect now and won't affect your customer's orders.

If you have any questions or need assistance, please do not hesitate to reach out to us. We're here to help you achieve your version of success!  💛