Who this is for
Every author selling through the CabinsPress shop. Most relevant for US-based authors and authors selling to US buyers.Overview
CabinsPress acts as the merchant of record for every shop transaction. That means CabinsPress — not the individual author — is the legal seller in the eyes of payment networks, tax authorities, and buyers. Sales tax is calculated, collected, and remitted by the platform; chargebacks and disputes are handled by the platform; receipts are issued by the platform; the author receives a payout net of fees and tax.Why this matters (in plain language)
When an author sells a book directly through Amazon, Shopify, or their own Stripe account, they take on a long list of legal and operational responsibilities. They become the merchant of record. They have to:- Register for a sales tax permit in every state where they have economic nexus (a presence large enough to trigger tax obligations — every state has a different threshold, often $100,000 in sales or 200 transactions per year)
- File sales tax returns in each of those states on a monthly, quarterly, or annual schedule
- Charge the right rate at checkout for thousands of different city, county, and state combinations
- Maintain a tax registration in any jurisdiction where they sell physical or digital goods
- Handle chargebacks, disputes, and refund requests directly with the card networks
- Issue compliant receipts
- File 1099-K and other informational returns if they exceed thresholds
- Stay current with tax rule changes (e.g., a state changes whether ebooks are taxable)
How it works in practice
At checkout
- The buyer pays an itemized total: subtotal + discount + shipping + sales tax + total
- Tax is calculated in real time based on the buyer’s shipping address and the type of product being purchased
- Buyers in tax-exempt locations (some states, international buyers) see no tax
- Buyers see a single line “Tax: $X.XX” on their order summary and confirmation email
Tax handling by product type
- Physical books (paperback, hardcover, merch) — taxed as tangible goods using the general tangible goods tax code; rates vary by state and locality. Some states (e.g., Pennsylvania, Massachusetts) exempt books entirely; others tax them at the full rate.
- Ebooks — taxed using a dedicated downloaded-software/e-book tax code (
txcd_10302000if you’re looking at backend records). Roughly 30 US states tax ebooks; the rest don’t. The platform applies the right treatment automatically. - Audiobooks — taxed with their own dedicated tax code (
txcd_10301000). Treatment differs slightly from ebooks in some states. - In-person sales (POS) — tax calculated based on the selling address the author configured during POS Setup (not the buyer’s home address), which is the correct treatment for over-the-counter sales
What the author sees
- On every order detail page: subtotal, discount, shipping, tax (collected by CabinsPress), total
- The tax amount is shown but excluded from the author’s earnings calculation
- Payouts are based on (subtotal − discount) minus platform fees, processing fees, and shipping-cost adjustments — never on tax
- The author never sees a “you owe sales tax” line item, because they don’t
What the author still needs to do (their tax obligations)
CabinsPress handles sales tax but not income tax. Authors still need to:- Report their net payout income on their personal or business tax return (it’s regular self-employment income)
- Receive an end-of-year 1099 from CabinsPress reporting their total payout earnings (US authors hitting the IRS threshold)
- Provide a valid TIN (Taxpayer Identification Number) — either a Social Security Number for individuals or an EIN for businesses — before the first payout can be processed
- Consult their own CPA or tax preparer for personal income tax filing; CabinsPress doesn’t provide tax advice
Chargebacks and disputes
- When a buyer files a chargeback with their credit card company, the dispute goes to CabinsPress (as the merchant of record), not to the author
- The platform tracks the dispute; the affected order’s earnings are held from payout until resolved
- If CabinsPress loses the dispute (or the case is settled in the buyer’s favor) after the author has already been paid, a clawback line item appears on the author’s next payout batch
- Authors don’t need to learn the chargeback process or maintain merchant accounts with card networks
Compliance rules that go with merchant of record status
Because CabinsPress is the merchant of record, authors agree to a Seller Payout Policy (effective April 2025) that includes:- Platform fee: 0% on the first $1,500 of monthly merchandise sales per workspace, then 3% only on merchandise above that threshold (excluding sales tax and shipping)
- Permitted products: Physical books, ebooks, audiobooks, and merch directly tied to the author’s work. Some product categories are prohibited (e.g., AI-generated content as the primary work, certain regulated goods)
- Fulfillment obligations: Ship physical orders within 10 business days; preorders limited to 3 months prior to the release date
- Buyer protections: 30-day return window; refund requests honored according to platform policy
- Three-strike rule: Three fulfillment failures in a rolling 12-month period can lead to suspension
- Payout timing: Funds become available after delivery is confirmed (physical) or content is available in Camp Fire (digital); presale funds are held until fulfillment
- Required identity: Valid TIN, legal name, and either Plaid-verified ACH or a Stripe Connect account before payouts
What this does NOT cover today
Cabins Press handles US sales tax robustly. It does not currently:- Register or remit VAT for international sales — international sales today are limited
- Handle GST or other non-US consumption taxes
- Issue invoices in formats required by some international buyers
- Provide tax-exempt purchase flows for institutional buyers (libraries, schools) — those buyers pay tax at checkout and can claim refunds through their own processes