A Taxability Information Code (TIC) is used to tell our software provider’s tax system whether your product or service should be taxed based on the destination address of the sale. This helps ensure that the correct tax rate is applied, taking into account differences in state tax laws. The TIC considers factors such as:
If you’re not sure which TIC to use for your product or service, here’s a general guideline:
If your product is taxable in all 50 states, you can use the “Uncategorized” TIC code 0. This is a safe default that tells the system to apply standard sales tax wherever applicable. This is also the default code that BlackSpace uses for all products.
However, if your product has specific tax exclusions in one or more states, you’ll need to choose a TIC code from the provided list that most closely matches your item. This allows our software provider’s tax system to apply tax rates accurately based on the shipping address.
Note: While we can’t give legal or tax advice about which specific TIC code to choose, if your item isn’t taxed at a special rate and you’re unsure, you can leave the TIC blank. In that case, the system will treat the item as fully taxable by default.
You can set or change the TIC on an existing product of new product. From your Seller Dashboard, go to Products. If you want to change the TIC for an existing product, click “Edit”, or, click “Add New Product” to start a new product. Scroll down to Taxability Information Code (TIC), select “Choose” and search for the most applicable TIC for your product or service.
For more information on the available TICs, see this article from our software provider.