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About Sales Tax

The Thread Exchange, Inc.: Category Display

In 2017 the Supreme Court decided that internet sellers are required to collect sales tax when sales or transaction volumes exceed certain levels. Currently, we are required to collect sales tax on shipments to these states: Colorado, Georgia, Illinois, Indiana, Michigan, North Carolina, Pennsylvania, Washington, and Wisconsin.

You may be exempt from sales tax if you are:

  • A business that uses our thread and needles to make products sold to customers.

  • A business that buys our thread and needles  to resell to customers

  • A governmental agency such as the military, state agency, school district, or fire department.

  • A charitable or religious organization that has a 501(c)(3) exemption from the IRS.

We need a signed copy of your state's sales tax exemption form to refund sales tax on your order.

We are making this as easy as possible. If we charge sales tax, you will receive an email from us by the end of the next business  day with your state's sales tax exemption form attached by the end of the next business day. When we receive a completed, signed form we will refund the sales tax on your order.

Our system is evolving. At this time we will continue to charge sales tax on your orders even though you provided us with a sales tax exemption form. When this happens we will automatically refund the sales tax by the end of the next business day.