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Is Route a taxable or non-taxable product?

Please note: We do not provide any guidance or instruction regarding tax concerns. We are not able to recommend Route as a taxable or non-taxable service. The below information is to simply inform your own business decisions. If you still have questions after reading this article, please consult your tax advisor.

Sales Tax

By default, when we “create” Route within a store (either as a product or a fee) it is set to not be taxed. As a result, it is the responsibility of the merchant to include Route in the taxable total, as needed. 

Whether or not an item is taxable varies by company - the products they sell, where they sell, where they are based, and where they ship.

If a merchant determines they need to make Route taxable under specific circumstances, then they need to make the change in their store/platform (Shopify, Magento, etc.) and apply the specific tax rules (tax code, rate, etc.).

Again, we provide no tax guidance, as whether to make Route taxable or non-taxable is up to you, your store, and (if applicable) your tax advisor.

Income Tax

The merchant is responsible for collecting and remitting the protection fees to Route. As such, Route is then responsible for paying income tax on the respective fees.