Article Guide

• Understanding Good Dog Buyers Vs. Referred Buyers
• What This Means for You
• How Sales Tax Collection Works
• Deposits and Payment Timing
• Payment Requests and Line Items
• Compliance and Record Keeping
• Good Dog Buyer Experience and Refunds
• Additional Support

Q: Why is Good Dog collecting sales tax?

A: Good Dog is required to collect and file sales tax on transactions made by Good Dog buyers as part of our compliance obligations—this is not optional for us. We've built this system in consultation with sales tax experts to ensure full compliance. Good Dog automatically calculates and collects sales tax from Good Dog buyers at no cost to you, ensuring every payment from a Good Dog buyer is fully sales tax-compliant.

Q: In which states is Good Dog registered to collect sales tax?

A: We are registered in every state that collects sales tax (including the District of Columbia and Alaska where required). We are not registered in U.S. territories or international jurisdictions.

Q: My state doesn't charge sales tax. Does this affect me?

A: Sales tax is only collected where it is legally required. If the puppy's pickup location is in a state that does not impose sales tax, sales tax will not be collected. We've worked with sales tax experts to make sure our system uses the latest, most up-to-date information to apply sales tax correctly for puppy sales and related goods and services.

Understanding Good Dog Buyers vs. Referred Buyers

Q: How do I know if my buyer is a Good Dog buyer vs. referral buyer?

A: A Good Dog buyer is someone who first contacts you on Good Dog and does not use your unique referral link to access your Good Dog profile. Our system can distinguish these buyers, whom we brought to you through our various efforts and marketing channels, from those you refer to Good Dog yourself. You can also easily identify referral buyers by looking at your messaging threads - conversations with referral buyers are tagged to show they came through your referral link.

Q: Will sales tax be collected from non-Good Dog buyers who use my referral link to pay on Good Dog?

A: No. Sales tax collection only applies to Good Dog buyers. We're not able to assist with sales tax collection and filing for non-Good Dog buyers. If you send a referral link to a buyer, sales tax won't be collected through our system, and you remain responsible for handling it according to your state's requirements.

Q: What should I do if I believe one of my Good Dog buyers qualifies for an exemption?

A: Now that collecting and filing sales tax from Good Dog buyers is a compliance obligation of Good Dog, we are happy to support your Good Dog buyers directly if they believe they qualify for a sales tax exemption. If so, you can always let them know that they should reach out to us directly at help@gooddog.com and our team would be happy to take a closer look and review their specific situation.

As a reminder, sales tax is paid by Good Dog buyers, so even if you as the breeder have a sales tax exemption, you don't need to share that exemption paperwork with us since you're not responsible for paying the sales tax. Your buyer would need to be the one to send us their exemption information if they qualify for an exemption.

What This Means for You

Q: Should I collect sales tax myself from Good Dog buyers?

A: No. Good Dog is legally required to handle the collection and filing of all sales tax from Good Dog buyers. This process is automatic and not optional. 

You should not:

• Collect, file or report sales tax from Good Dog buyers
• Include any sales tax language in your Good Dog profile or contracts for Good Dog buyers

Q: What if I accidentally collect sales tax from Good Dog buyers?

A: As of September 15, 2025, you should not collect sales tax from Good Dog buyers. Good Dog is required to collect sales tax on these transactions. 

If you accidentally collect sales tax from a Good Dog buyer after September 15, 2025, we encourage you to refund that amount directly to your Good Dog buyer to avoid double-charging them for sales tax.

Q: Can I continue to collect sales tax from Good Dog buyers myself after September 15, 2025?

A: No. Good Dog is required to collect sales tax from Good Dog buyers as part of our compliance obligations. This process is automatic and not optional. You should not collect sales tax separately from Good Dog buyers since we're handling it through our platform.

Q: What if I have contracts that already mention sales tax?

A: You should update your contracts to remove sales tax language for Good Dog buyers, since Good Dog now handles this automatically. For buyers who use your referral link or other non-Good Dog buyers, you should continue to manage sales tax as you always have.

Q: Do I need to do anything related to sales tax for Good Dog buyers after September 15, 2025?

A: No. You are not responsible for any sales tax on transactions with Good Dog buyers. Good Dog automatically calculates, collects, and files sales tax for Good Dog buyers. Good Dog buyers will pay any applicable sales tax when they make their final payment.

Q: I file sales tax quarterly. My current quarter includes payments from before and after September 15, 2025. What do I need to report?

A: For your quarterly filing, you only need to report sales tax for Good Dog buyer payments that were collected before September 15, 2025. You do not need to report or file any sales tax for Good Dog buyer payments collected on or after September 15, 2025 - Good Dog handles those. For any non-Good Dog buyers (such as those who used your referral link), you should continue to handle sales tax reporting as you always have. If you have questions about your specific filing requirements, we recommend consulting with a tax professional.

Q: What if a Good Dog buyer asks me about the sales tax charge? 

A: You can always direct a Good Dog buyer to our Care team at help@gooddog.com so we can support them. We will let them know that Good Dog automatically calculates and collects sales tax where required by law, and that it appears as a separate line item so they can see exactly what they're paying for the puppy versus for sales tax. The tax amount is calculated based on current tax laws for the puppy's pickup location.

How Sales Tax Collection Works

Q: How is the sales tax rate determined?

A: Our system automatically calculates the applicable sales tax based on the type of payment being made using the most up-to-date rates and the location involved, down to the zip code.

For puppy deposits and final payments:

• Sales tax is based on the puppy's pickup location
• You can specify this location yourself when requesting a payment or allow your Good Dog buyer to enter it when completing payment
• The rate is automatically calculated based on current tax laws for that location

For additional services (Transportation, Training, Boarding, or Products):

• Training and Boarding: Sales tax is calculated based on the zip code in your Good Dog account settings (be sure to confirm your account zip code is up to date)
• Transportation and Products: Sales tax is calculated based on the puppy's pickup location
• Other: No sales tax is collected

Q: Does this also cover taxes with other names, like GRT or GET?

A: Yes. Not every state calls it "sales tax." Some states use different names for a tax that works the same way, such as Gross Receipts Tax (GRT) in New Mexico, General Excise Tax (GET) in Hawaii, Transaction Privilege Tax (TPT) in Arizona, Business & Occupation (B&O) Tax in Washington, or certain Excise Taxes in states like West Virginia.

Even though the names vary, these are all state transaction taxes, and Good Dog's system automatically calculates, collects, and files them the same way we do for sales tax. This means your Good Dog buyer transactions are fully sales-tax compliant no matter what the tax is called in your state.

Q: How do I specify the puppy's pickup location?

A: When creating a final payment request on Good Dog, you'll see an option to enter the pickup location yourself, or allow your buyer to enter it when paying.

Q: I split time between different homes/locations so my puppy pickup locations may vary. How should I handle setting the correct puppy pickup location when creating payment requests?

A: When creating a final payment request, you can enter a different location than the default location associated with your Good Dog account. Sales tax is calculated based on where the puppy is actually picked up, so be sure to enter that location when creating your final payment request.

Q: How is sales tax displayed to buyers?

A: Sales tax appears as a separate item on the final payment request, displayed completely separately from your puppy price, so buyers can see exactly what they're paying for. Throughout the buyer journey, we now display a "Before taxes and fees" note next to prices to help set clear expectations that the final checkout amount may be different. Buyers are accustomed to seeing sales tax shown this way, and many have told us they expect it as part of the payment process.

Deposits and Payment Timing

Q: How is sales tax collected for deposits?

A: Sales tax on deposits is not collected when the deposit is placed. Instead, it's collected at the time of the final payment, covering the entire Good Dog buyer transaction (including the deposit, if one was previously paid).

Q: Does Good Dog collect sales tax from buyers who paid a deposit before September 15th, 2025?

A: Good Dog collects and files sales tax on payments from Good Dog buyers who complete a final payment on or after September 15, 2025. This means if a Good Dog buyer made a deposit before September 15, 2025, but completes their final payment on or after that date, sales tax will be collected on their final payment (covering the entire transaction, including their earlier deposit).

Payment Requests and Line Items

Q: What payments will sales tax be applicable to?

A: Sales tax is collected when your buyer makes their final payment and applies to:

• The full puppy payment (including prior deposits)
• Good Dog Protection & Support fees
• Processing fees
• Any additional line items you choose to add on the final payment invoice (transportation, training, etc.) except for those marked “Other”

All deposits (if applicable) and final payments from Good Dog buyers must be processed through Good Dog with the correct payment category selected. Payment category definitions:

• Deposit: Refers to any payment(s) made to reserve or hold a puppy
• Dog payment: Refers to the full puppy price minus any deposits already made. This includes all installment payments, if applicable.

Any incorrect payment categorization may violate our On-Platform Payment Policy. Sales tax is only applied to transactions where it is required by law.

Q: Will I be able to see an estimate of the sales tax my buyer will be paying?

A: Yes. When you send your final payment request through Good Dog using your desktop, you'll be able to see the estimated sales tax your buyer will pay by hovering over the "i" icon next to the subtotal. The amount automatically is calculated based on the pup's pickup location and local tax rates.

Keep in mind that this is an estimate, and the final sales tax amount may vary slightly. Your buyer will see the final, accurate sales tax amount on their checkout screen before they complete payment—that's the amount they'll actually be charged.

Q: Will the 6.5% deduction apply to the extra items I add to my payment requests?

A: No. Good Dog's 6.5% deduction only applies to deposit and final dog payments from Good Dog buyers. The deduction does not apply to extra line items you add, such as transportation or boarding fees.

Q: Does Good Dog keep any portion of the sales tax collected from my buyers?
A: No. Good Dog does not take any percentage or portion of the sales tax collected. All sales tax amounts are filed directly with the applicable states.

Q: How do I add separate line items to a payment request?

A: When requesting a final dog payment:

1. Click "Add another item or service"
2. Select from the dropdown: Transportation, Training, Boarding, Product, or Other
3. Enter the description and amount
4. Add as many items as needed

This creates one comprehensive invoice for your buyer.

Q: What types of services can I add to a final payment request?

A: Adding line items to a final payment request is completely optional. If you choose to add line items, you can include services such as transportation, training, boarding, or products. This allows you to create one comprehensive invoice for your Good Dog buyer instead of handling multiple separate payments.

Q: Can I edit or remove items after sending a payment request?

A: Once a payment request is sent, you cannot edit or remove items. If you need to make changes, you can cancel the payment request and create a new one with the correct items and amounts.

Compliance and Record Keeping

Q: How do I know that my Good Dog buyer transactions are sales tax compliant?

A: Good Dog handles all sales tax compliance automatically for your Good Dog buyer transactions. We automatically calculate the sales tax rates, collect the appropriate amounts, and file with the proper state authorities. You have access to transaction records showing the exact tax amounts collected and a certificate documenting that Good Dog collects and files sales tax on your behalf from Good Dog buyers. All filings are made under Good Dog's name, and your Good Dog transactions are automatically recorded as sales tax-compliant.

Q: Does this affect my other tax reporting obligations?

A: Good Dog is not able to provide general tax advice. However, this change only affects sales tax collection and filing for Good Dog buyers. Good Dog's sales tax collection is specifically related to the transaction-level tax that applies when someone purchases a product or service. Good Dog's sales tax collection does not involve your other tax obligations. For questions about your specific tax and reporting requirements, we recommend consulting with a tax professional.

Q: How will I see the sales tax collected from my Good Dog sales?

A: You can view the exact sales tax collected on each transaction directly in your payments dashboard. You also have access to a certificate confirming that Good Dog collects and files sales tax on your behalf from Good Dog buyers. Both the dashboard records and the certificate can be downloaded and printed for your own record-keeping purposes or you can choose to access them from your dashboard directly. No action is required on your part—these are simply made available to you for your own record-keeping purposes if you choose.

Q: How is sales tax reported to the states?

A: Good Dog is registered with every state that collects sales tax and files and reports all collected sales tax directly to those states. All filings are made under Good Dog's name, and your transactions with Good Dog buyers are automatically recorded as sales tax-compliant. 

Your personal information is never shared with state sales tax authorities. 

You have access to a certificate documenting that Good Dog collects and files sales tax on your behalf from Good Dog buyers, plus transaction records showing the exact tax amounts collected. Both can be downloaded for your own record-keeping purposes if you prefer to keep those kinds of records, but no action is required from you.

Q: How long does Good Dog keep sales tax records?

A: Good Dog keeps records of sales tax paid by Good Dog buyers for a minimum of 7 years to meet compliance requirements.

Good Dog Buyer Experience and Refunds

Q: How will Good Dog buyers know if sales tax applies to their purchase?

A: Good Dog buyers see any applicable sales tax clearly displayed in the final payment request they receive from you. The sales tax amount is shown separately from your puppy pricing, so buyers can see exactly what they're paying for the puppy and for sales tax. They also see this breakdown in their payment confirmation after completing their final payment.

Q: How do I handle sales tax when refunding a buyer's purchase?

A: You only need to refund the amount you received for the puppy, and we'll automatically handle the sales tax portion of the refund.

Additional Support

We know any change can take time to get used to, and we’re here to make this as easy as possible for you. Your Good Dog Specialist is always here to support you. Please don't hesitate to email us anytime at breederteam@gooddog.com.

Please note that we cannot provide legal, accounting or tax advice. If you have questions about sales tax requirements for buyers who come through your referral link or other non-Good Dog buyers, we recommend consulting with a tax professional for guidance specific to your situation.