Pinterest and Sales Tax: What Sellers Need to Know

If you’re using Pinterest to promote and sell your products, you’re tapping into a powerhouse for visual marketing. But while your boards and pins might be driving traffic and sales, are you fully prepared for the sales tax implications of your growing business?

Understanding Sales Tax on Pinterest

Pinterest doesn’t manage sales or handle transactions—it directs potential buyers to your website or e-commerce store. It means you have to comply with sales tax laws.

Here are key points to consider:

1. Nexus Matters: If your business has a sales tax nexus (physical or economic presence) in a state, you must collect and remit sales tax on purchases made by customers in that state.
2. Platform Integrations: Many Pinterest users rely on platforms like Shopify or Etsy to manage their sales. These platforms often provide sales tax tools—but don’t assume they’ll do all the work. You still need to ensure accuracy.
3. Digital Goods and Services: If you sell downloadable items like e-books, patterns, or courses through Pinterest promotions, be aware that sales tax rules on digital goods vary widely by state.
4. Destination-Based Taxation: Most U.S. states require sellers to collect sales tax based on the buyer’s location, not the sellers. It can complicate compliance for businesses with broad online reach.

Tips for Staying Compliant

• Use Automated Tools: Consider tax compliance software like Avalara or TaxJar to streamline calculations and filings.
• Stay Updated: Tax laws frequently change, especially regarding online sales. Bookmark resources or follow a trusted sales tax advisor.
• Educate Your Audience: Create content to inform customers about how sales tax applies to their purchases. Transparency builds trust.

Pinterest is an excellent tool for building your brand, but sales tax compliance is essential to success. With the right systems in place, you can focus on curating your boards and delighting your customers while staying stress-free during tax season.

Ready to simplify sales tax for your Pinterest-driven business? Start with a consultation today!

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.