TABLE OF CONTENTS
- Why are you collecting sales tax?
- Which states is sales tax collection live in?
- How does it work, step by step?
- Who pays the tax?
- Does my payout change?
- What do buyers see at checkout?
- How do you pay the state?
- Do I need to do anything?
- What if the transaction is cancelled?
- I'm already collecting sales tax and remitting — what do I do now?
- Does this change my income taxes?
- What if we only proceed with a deposit?
- What do I tell a buyer who asks about the tax line?
- Who can I ask?
Why are you collecting sales tax?
State law treats a marketplace as a "marketplace facilitator" when it hosts the listing and takes the buyer's payment on the breeder's behalf. Where both apply, the state makes the marketplace responsible for collecting and paying the sales tax — not the individual breeder.
As we've launched our pet payments tool and seen a significant uptick in volume, we must begin charging sales tax to stay compliant with state and national tax laws.
Which states is sales tax collection live in?
Collection is currently live in:
- New Jersey
- Pennsylvania
- Ohio
- New York
- Maryland
- Indiana
How does it work, step by step?
- The buyer sees the sales tax as its own line at checkout.
- We collect the tax with the buyer's payment.
- We pay the tax to the state automatically, on your behalf.
- You receive your usual payout. The tax isn't part of it.
You don't need to do anything at any step.
Who pays the tax?
The buyer. The tax is added on top of your price, so the price you set stays the same.
Does my payout change?
No. You're paid the same amount as before. The tax is never part of your payout — it goes directly to the state.
What do buyers see at checkout?
Buyers in these states see the sales tax as its own line, with a subtotal and a total. The total is higher than your listed price by the amount of the tax.
How do you pay the state?
We file and pay the tax on your behalf, as the marketplace, under our own state registrations. It goes in as one return for the whole marketplace — not one per breeder.
Do I need to do anything?
No. Collection and payment happen automatically. You don't register, collect, or file anything for these sales.
What if the transaction is cancelled?
If you have to cancel a transaction and sales tax has already been collected on the deposit, we'll take care of working with the tax authorities to make sure double payment isn't required.
I'm already collecting sales tax and remitting — what do I do now?
One of the benefits of working with a marketplace like Lancaster Puppies is that we handle the admin tasks associated with running a kennel.
For Lancaster Puppies transactions, you won't need to collect sales tax. If you include sales tax in your pricing, your buyers will be double charged.
Does this change my income taxes?
No. Sales tax and income tax are separate. Your payouts are still your income, reported as you do today. The sales tax isn't part of your payouts, so it isn't part of your income. For your own filing, ask a tax professional.
What if we only proceed with a deposit?
Sales tax is only charged on what's processed through our site. If you sell a puppy for $1,000 but only accept a $300 deposit on Lancaster Puppies, sales tax will be charged on the $300 that passes through PetPayments.
What do I tell a buyer who asks about the tax line?
You can tell them:
- The state requires it.
- It's shown as a separate line at checkout.
- We collect it and pay it to the state — it doesn't go to you.
If a buyer has questions about their own payment, they can contact our support team at support@lancasterpuppies.com.
Who can I ask?
Contact our support team. We can explain how tax appears on a specific sale, but we can't give tax advice.