# Tax question on POD Service



## sane624 (May 2, 2006)

Hello,

I have been following many threads regarding POD Fulfillment services but had a question regarding sales and taxes.

Hypothetical Scenario:

-I sell t-shirts on a POD site for $20. My commission on average is $5/shirt.

-Based on this pricing model I sell $10,000 (gross)in shirts for the year. Of this amount my total commission for the year is $2500.

?- At tax time, do I pay taxes on my commission or for all sales?
?- Does the POD service I use have any tax liability?

Thanks in advance for any advice, answers you may have.


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## splathead (Dec 4, 2005)

Only the $2,500 would be considered income to you. The POD's income for tax purposes would be $7,500. ($10,000 less $2,500 commission paid to you).


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## sane624 (May 2, 2006)

Thanks so much Splathead!

I'm currently writing an action plan for a tee biz and needed clarification on this issue for my POD model.

I appreciate it!


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