General Sales Tax Information
Paparazzi does not provide tax or legal advice. Please contact a tax or legal professional with any questions about taxes.
Pursuant to 8.3 Sales Tax, Paparazzi collects and remits sales tax and consumer use tax (referred to herein as “sales/use tax”) from Consultants when they purchase Paparazzi Accessories at wholesale and those Accessories are shipped to a state or locality that assesses sales/use tax on Paparazzi’s products. Paparazzi will not collect sales/use tax from Consultants if they provide Paparazzi with documentation of a valid exemption (such as a resale permit) on or before the time of their purchase.
Paparazzi has Consultants in all fifty states and all US Territories. Sales/use tax laws are complex and vary by state and locality. Paparazzi Consultants are independent contractors and are responsible for their own business practices and tax issues. Further, every Consultant is required to comply with all state and federal laws (see Section 6.6 Laws and Ordinances). Consultants should consult a tax advisor regarding all tax matters. If Consultants are collecting sales tax from their customers, they are responsible to comply with the requirements of their taxing authorities. This would include filing any sales/use tax reporting forms to their tax authority - documenting what sales/use taxes they have collected, as well as sales/use taxes they have already paid and for which they may receive a credit on sales/use taxes owed.
Section 8.3 is not intended to provide legal advice about Consultants’ rights and responsibilities for collecting and remitting sales tax. Paparazzi is not suggesting or recommending that Consultants should collect sales tax without remitting it to their states. Instead, Section 8.3 highlights for Consultants’ consideration (and subject to discussions with a tax advisor) that certain states provide opportunities for Consultants to offset sales tax already remitted to their states by Paparazzi.
As an illustrative example, certain states permit a tax-paid credit to taxpayers as an offset to sales or use taxes that they collect in the course of doing business. If the state where a Consultant conducts business permits such a credit, the sales tax paid by the Consultant to Paparazzi (and that Paparazzi has remitted to the Consultant’s state) may be available as a credit to offset the sales tax that the Consultant collects from customers. If available, Consultants essentially recover the sales tax remitted by Paparazzi to their states by filing for and claiming a credit to offset the sales tax collected from their customers.
This is merely an illustrative example and Paparazzi does not state whether this credit is available to all Consultants in the states where they conduct business. Paparazzi strongly recommends that Consultants consult a tax advisor on the tax laws in the states where they conduct business so that they apply the law (including available exemptions, credits, and rates) to their business activities.
Please note that even though Paparazzi collects and remits sales tax paid by Consultants when ordering from Paparazzi, it is the Consultant’s responsibility to comply with any and all requirements regarding sales tax, including filing any reports, etc. as may be required by your state.
Paparazzi does not provide tax or legal advice to Consultants. If you have any questions about sales tax or what your state requires, you should contact a tax advisor.
Calculation of Sales/Use Taxes
The sales/use tax collected by Paparazzi from the Consultant is based on the following formula:
The retail sales price of Paparazzi Accessories multiplied by the state and local sales tax rate for the location to which the Accessories Paparazzi products are shipped.
Sales Tax on Consultants’ Sales Outside City or State
Consultants who sell Paparazzi Accessories to customers in a different state should contact a local tax advisor with questions regarding sales tax.
Sales/Use Tax Exemption
Paparazzi will not collect sales/use tax from Consultants who provide documentation evidencing a valid exemption (such as a resale certificate) on or before the time the Consultant makes a purchase from Paparazzi. Consultants should contact a local tax advisor and/or state tax authority for information on obtaining and completing the necessary paperwork to obtain a valid exemption. Requirements may vary from state to state.
Tax exemption documentation must be submitted to and approved by Paparazzi before the exemption will be granted. The tax identification number and the name on the exemption paperwork must match the tax identification number and name on the Consultant’s account. A Consultant should email support@paparazziaccessories.com to initiate the process of being a tax-exempt account. Please note that it may take several business days to complete this process, and any orders placed before Paparazzi approves the exemption will be subject to sales tax.
Consultants who are approved for tax exemption on Paparazzi purchases will be responsible to report and pay their own sales tax obligations to their respective states.
Vendor Events
If a Consultant has signed up for a vendor event and the event coordinator requires a state sales/use tax certificate, the Consultant can email support@paparazziaccessories.com for a copy of the sales tax certificate issued to Paparazzi by the state in which the Consultant resides.
Potential Sales Tax Liability
Paparazzi does not collect sales tax on free Accessories that are given to Consultants, including, but not limited to, Hostess Rewards, free Life of the Party Accessories, and Accessories given away at Paparazzi-sponsored events. If Consultants choose to sell these Accessories, they should contact a tax professional concerning potential sales tax liability and sales/use tax laws in their state.