Marketplace Sales and Taxes

How a sale works

When a collector purchases your artwork through the Behold Marketplace, the transaction is processed through our Shopify marketplace and Stripe payment system.

After you receive the order notification, you will package and ship the artwork directly to the buyer. The funds are not released immediately. They remain in the transaction process until delivery is confirmed or the designated holding period has passed, helping protect both buyers and artists.

Once the transaction is completed, the proceeds are deposited into your connected Stripe account, less any applicable marketplace fees.

How sales tax works

Sales tax is calculated and collected automatically as part of the checkout process through the marketplace infrastructure. Shopify provides the sales tax calculation and collection tools, and the transaction records are maintained within the system. This greatly reduces the burden on individual artists who would otherwise need to calculate taxes for buyers in different states. (Stripe⁠)

Because tax laws vary by state and individual circumstances, we cannot provide tax advice. We always recommend consulting your accountant regarding your specific filing obligations, particularly since you operate from more than one state.

Year-end tax reporting

As part of your Stripe account setup, Stripe collects the tax information required for payment processing and reporting. Depending on your sales volume and applicable reporting requirements, Stripe may provide tax reporting documents such as Form 1099-K and make them available through your Stripe account dashboard. Stripe also provides those reports to the IRS when required by law. (Stripe Support⁠)

The purpose of the Stripe onboarding process is largely to verify identity, ensure secure payments, comply with financial regulations, and support year-end tax reporting requirements.

Note: We’re preparing a more detailed Marketplace Guide that will explain payments, shipping, taxes, commissions, and reporting step-by-step for all participating artists.

-Jim

…and for those who remember:
https://www.youtube.com/watch?v=gMdcE8jdz70&list=RDgMdcE8jdz70&start_radio=1