Sales and Income Tax

As a seller on TCGplayer.com, you're responsible for paying all fees and taxes associated with your activity on the marketplace in accordance with our Marketplace Seller Agreement, including compliance with sales tax, income tax and import tax regulations.

In June 2018, the Supreme Court ruled in South Dakota vs. Wayfair that the physical presence rule used previously to determine sales tax nexus is incorrect, opening the door for states to establish nexus requirements beyond physical presence. States have been quick to enact laws to capture sales activity for their states. As a result, you may be required to collect tax if your sales fall above certain state-specific thresholds.

TCGplayer collects and pays sales tax on all transactions in certain states based on our specific business requirements. Please note that if you have substantial sales into states we aren’t automatically collecting for, you could still have a responsibility to collect sales tax on these purchases. If you’d like us to collect tax on your behalf for sales within your state, follow the directions below. You’ll be able to see the sales tax we collect in your Sales Summary Report.

Marketplace Sellers - If you manually enter your inventory and prices on TCGplayer

TCGplayer can collect sales tax for brick and mortar stores that participate in our Certified Hobby Shop program or are members of TCGplayer Pro. We then remit those taxes to you, though it is still your responsibility to confirm the tax amount you owe and pay it to the appropriate government(s). We highly recommend that all eligible sellers opt into this feature. If your store is in Pro or is a Certified Hobby Shop, please opt in by sending us an email with the subject line "Marketplace Sales Tax" and include the following information:

1. The email address associated with your TCGplayer store account
2. Your full name
3. The name of your store on TCGplayer
4. The state your store is located in
5. The appropriate sales tax for your store
6. Your zip code

Once the Customer Service team has your information, we'll make sure all the details listed above are accurate and send you a confirmation email.

If we've already entered your sales tax amount for your store and it needs to be updated, please send us an email with the subject line "Marketplace Sales Tax Update" and include the following information:

1. The email associated with your TCGplayer store account
2. Your full name
3. The name of your store on TCGplayer
4. The state your store is located in
5. The sales tax currently associated with your store
6. The new sales tax you would like associated with your store
7. Your zip code

Once the Customer Service team has your information, we'll make sure all the details listed above are accurate and send you a confirmation email.

Sync Seller - If you Sync your existing online inventory and prices with TCGplayer

TCGplayer will collect any Sales tax for Sellers who implement a third party eCommerce service, like Crystal Commerce or BidWicket, on any in-state transactions.  This means that the Buyer’s Shipping Address is located in the State where the Seller is located.    

Information on Income Tax

1099-K is a tax form that payment services are now required to submit to the Internal Revenue Service (IRS). This affects high-volume sellers on TCGplayer.com.

If you receive a Form 1099-K, it means that your sales exceed this level in 2022:

• $20,000 USD in gross payment volume from sales of goods or services in a single year

NOTE: On Dec. 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of $600. For calendar year 2022, third-party settlement organizations who issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions.

TCGplayer will ask you to update your account(s) by providing a tax ID number if you don't already have one on file.

Federal Regulations require TCGplayer to collect W-9 Tax Information prior to issuing any form of payment to sellers.

To obtain a US tax identification number, please visit the IRS website for more information regarding Form W-7.

You will receive a message in your Seller dashboard if you need to fill out the digital W-9 form. Click on the W-9 Tax Form Page link in the prompt to enter your info. 

Reports

You can use the Reports tab in the Seller Portal to get a report on your sales figures over a particular timeframe. This data is useful for preparing taxes or finding trends in your sales.

Change Log

• 1/31/23 - Updated threshold for 1099-K for 2022 based on IRS update.
• 6/20/22 - Updated information about contacting the IRS to fill out a W-7 in order to complete the W-9, instead of using a W8-ben.
• 6/10/22 - Updated 1099-K threshold for 2022.
• 4/13/22 - Clarified requirements for 1099-K.