In this video, I explain how to charge sales tax during your Kickstarter campaign. Despite the fact that Kickstarter doesn’t allow you to charge sales tax on online purchases or on the items that you raise funding for within their platform, there are 2 WAYS you can go about it – one of them being my recommended tool, BackerKit.
The first way you can charge sales tax is to anticipate what the rate will be for the item that you’re selling and for the country you’re selling it in, and then bundle that into the overall price of your product. This method involves “guesstimation” and isn’t going to be totally accurate. However, it makes things easier and saves your customer from having to pay sales tax on a different platform or somewhere else before getting the item.
The second method on how to charge sales tax for your Kickstarter campaign is to use a fulfillment software tool called BackerKit. This tool simplifies the process of charging a sales tax on online purchases. Not only does it allow you to charge for shipping and sales tax after a purchase has been made, it also allows you to send out surveys and upload backer data. If you want to learn more about using BackerKit, check out this article.
There you have it! Two methods on how to charge sales tax during your Kickstarter campaign. Although BackerKit is more complicated than the bundling method, it’s also a more accurate way to charge sales tax on online purchases.
Khierstyn – Founder and CEO at launchandscale.co