Why do my members have to pay taxes if we are a 501c3 organization?
Even if your church is a 501(c)(3) organization, members and customers may still be charged sales tax when they purchase items from your storefront.
A church's tax-exempt status generally applies to purchases made by the organization for official church use, not to purchases made by individual members for personal use.
Sales tax is collected where required based on applicable state and local regulations.
When Tax Exemption May Apply
Tax exemption may apply when the church or nonprofit account is purchasing items for official church use, such as staff apparel, volunteer shirts, ministry team items, or event merchandise.
To request tax-exempt status, go to:
Dashboard > Account > Account Workspace > Tax Exempt
You can also visit:
https://thechurch.shop/my-account/tax-exempt/
Fill out the required information and upload the necessary documents.
Important Note
Sales tax only applies in certain states based on tax nexus and applicable regulations.
For questions about reporting sales income, payouts, or tax-exempt purchases, please consult a CPA or tax advisor. The Church Shop can explain how the platform works, but we cannot provide tax advice.