This article outlines the tax policies for products sold in the United States, Canada, Chile, and Brazil. Please note that tax policies are subject to change.
The Gelato Dashboard's Order page shows the simplified sales tax value (without decimal and centesimal values). The full tax % value is shown on the invoice you can download as a PDF file.
Note: Customers are responsible for monitoring and complying with any applicable tax law changes in the regions where they sell their products. In case of regulatory updates, you may need to take appropriate action to remain compliant. Please note that, due to changes imposed by tax authorities, Gelato may be required to charge taxes even if a resale certificate was previously provided. In such cases, you may need to resubmit your resale certificate and/or provide updated documentation on a recurring (e.g., annual) basis to maintain your tax-exempt status.
Sales Tax in the United States
Note: The U.S. doesn’t use VAT terminology. Sales tax is applied.
Sales tax is charged when products are delivered to the following states, territories, and districts in the United States:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, and Wyoming.
Gelato ASA is registered in 44 U.S. states; however, tax IDs are not shown on invoices. You can find our registration numbers here.
Sales tax will not be charged for printed materials exported outside the United States.
When selling products from Gelato in the USA, please consider obtaining a Resale Certificate. Resale certificates may exempt you from sales tax in certain states, depending on each state’s specific rules and compliance requirements. Please refer to our article What is a resale certificate? for full details.
Sales tax in the USA is calculated based on the order recipient's address. It's usually a combination of the state tax and the county tax. Therefore, there might be different rates for orders within the same state in the calculation based on the state name (to calculate the state tax) and the city name with the zip code to calculate the county code. You can calculate the sales tax on your own using external services like https://www.taxjar.com/sales-tax-calculator
Sales Tax in Canada
GST/HST is charged for orders printed locally in Canada. Canadian Federal GST is charged at 5%. This is combined in most Provinces with the local PST, which is set between 0% and 10%, to create a Harmonized Sales Tax (HST) rate as in the chart below:
VAT in Chile
When a local Chilean customer places an order for products on the Gelato website, it enters into a service contract with Gelato Chile and will receive an invoice from Gelato Chile. For domestic sales from Gelato Chile to local customers, 19% VAT will be added.
If the customer billing entity is outside Chile and would like to pay for products delivered in Chile, Gelato ASA will bill the customer for the products. Because Gelato ASA is not registered in Chile for TAX purposes, no Chilean VAT will be included in the invoice from Gelato ASA to the non-Chilean customer.
Indirect Taxes in Brazil
When a local Brazilian customer places an order for print products on the Gelato website, it enters into a service contract with Gelato Brazil and will receive an invoice from Gelato Brazil.
Gelato Brazil will charge Brazilian customers: 1,65% PIS and 7,6% COFINS (i.e. 9,25% cumulative under APM), and 2% ISS (if Gelato Brazil is incorporated in São Paulo).
If the customer billing entity is outside Brazil and would like to pay for products delivered in Brazil, Gelato ASA will bill the customer for the products. Because Gelato does not have a PE (permanent establishment) in Brazil, no Brazilian VAT will be included on the invoice from Gelato ASA to the non-Brazilian customer.
Need Further Assistance?
Please note that this information is for general guidance only and shouldn't be considered financial or tax advice. For specific guidance related to your business, consult with a qualified tax advisor.