Print on demand taxes

Print on demand removes inventory, but not tax. The production provider, your store and any marketplace each play a part in sales tax, and sellers are often charged tax twice without realizing it. This guide explains how it fits together.

By Hamza Fida, Chartered Accountant. Reviewed by Mirza Fahad Baig, Chartered Accountant. Checked against official sources on . 1 minute read.

Short answer

Print on demand taxes cover two things. On income, your profit, sales less the provider's production and shipping charges, fees and ads, is business income on Schedule C. On sales tax, you collect on your own store's sales where you have nexus, marketplaces collect on theirs, and the print provider may charge you sales tax on its production charge unless you give it a resale certificate.

At a glance

Income
Profit on Schedule C or business return
Provider charges
Cost of goods sold
Your store's sales
You collect sales tax where you have nexus
Marketplace sales
The marketplace collects
Provider's charge to you
May include sales tax unless you give a resale certificate
Inventory
None to count
Print on demand taxesIncome: Profit on Schedule C or business return; Provider charges: Cost of goods sold; Your store's sales: You collect sales tax where you have nexus; Marketplace sales: The marketplace collects; Provider's charge to you: May include sales tax unless you give a resale certificate; Inventory: None to count.KEY FACTS AT A GLANCEPrint on demand taxesIncomeProfit on Schedule C orbusiness returnProvider chargesCost of goods soldYour store's salesYou collect sales taxwhere you have nexusMarketplace salesThe marketplace collectsProvider's charge to youMay include sales taxunless you give a resalecertificateInventoryNone to countChecked against official sourcesTax BakersPrint on demand taxesIncome: Profit on Schedule C or business return; Provider charges: Cost of goods sold; Your store's sales: You collect sales tax where you have nexus; Marketplace sales: The marketplace collects; Provider's charge to you: May include sales tax unless you give a resale certificate; Inventory: None to count.KEY FACTS AT A GLANCEPrint on demand taxesIncomeProfit on Schedule C or business returnProvider chargesCost of goods soldYour store's salesYou collect sales tax where you have nexusMarketplace salesThe marketplace collectsProvider's charge to youMay include sales tax unless you give aresale certificateInventoryNone to countChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

How is income worked out?

Sales less discounts and refunds, minus cost of goods sold, which is the provider's charge for producing and shipping each order, then minus platform fees, ads, design software and other costs. Since there is no stock, cost of goods sold is simply the provider's charges for orders sold. See cost of goods sold.

How does sales tax work?

SaleWho collects sales tax
Your customer buys on Etsy, Amazon or another marketplaceThe marketplace
Your customer buys on your own storeYou, in states where you have nexus
The print provider charges you for productionThe provider may charge you sales tax, unless you give a resale certificate

How do you avoid paying tax twice?

  1. Register where you have nexus

    For your own store's sales. See how to get a sales tax permit.

  2. Give the provider resale certificates

    For states where it charges sales tax on orders shipped there.

  3. Collect tax from your customers

    On taxable sales in those states.

  4. Record any tax the provider charged

    If you could not give a certificate, it is part of your cost.

See resale certificates.

What else can you deduct?

Design software and fonts, mockup tools, sample orders, platform subscriptions, ads and contractors such as designers. Samples you keep for personal use are not deductible.

Running a print on demand store?

We set up your sales tax registrations and resale certificates, track your margins and file your return.

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Questions people ask

How is print on demand income taxed?

As business income: sales less the provider's production and shipping charges, fees and other costs.

Do I charge sales tax on print on demand sales?

On your own store's sales in states where you have nexus. Marketplaces collect on their sales.

Why does my print provider charge me sales tax?

Some providers must collect tax on orders shipped to certain states unless you give them a resale certificate.

Do print on demand sellers have inventory?

No. Cost of goods sold is simply the provider's charges for orders sold.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. California CDTFA: Publication 109, online marketplaces and fulfillment centers
  2. Streamlined Sales Tax Governing Board: certificate of exemption
  3. IRS: About Schedule C (Form 1040)
  4. Streamlined Sales Tax Governing Board: Marketplace facilitator state guidance

Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.

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This guide is general information. It is not tax or legal advice for your situation.