Sales Tax & Income Tax

When it comes to sales on the SalonInteractive platform, here's how it works and who is responsible for what for taxes:

Sales Tax
SalonInteractive calculates the appropriate sales tax on products sold based on where each transaction/sale takes place, withholds that amount from the sale, and reports it to the appropriate tax agency. Since we technically handle all sales on our platform, we are responsible for collecting and paying any sales tax - therefore you or your salon don’t need to.
 
Income Tax
Any amounts paid to salons for sales on the SalonInteractve platform are technically commissions and are therefore considered income. Via our payments processor(s), we do report all commissions payments to the government as required. SalonInteractive or our payments processor do not withhold any amounts for your income taxes. Therefore, you/your business is responsible for withholding and/or paying any and all income tax on commissions paid. 

How to find your commissions payments for the tax year:
Be sure to report all income from commissions paid on your salon’s income tax filings. You can access your Commissions payments on SalonInteractive by going to eCommerce > Commissions and then entering the dates (January 1 – December 31) for the tax year in question.