Anonymous asked in Business & FinanceTaxesOther - Taxes · 8 years ago

Online Orders & Sales Tax?

If I order something from a company out of California (and i'm in TX) typically there's no sales tax. So how about this scenario...I ordered a gift for a relative who lives in california, stated on amazon that my billing address is still TX, the company has a phycial presence in CA which i'm shipping to, and I was charged sales tax despite my billing information, how does that make any sense? shipping address doesn't have anything to do with my billing information, and it's not like it's some kind of scam protection because in order to run my card they have to input the right zip code, and if they put the shipping zip code then the payment would decline so it's not like that's an excuse, any ideas what justifies this?

3 Answers

  • Anonymous
    8 years ago
    Favorite Answer

    You pay taxes on the shipping address. From Amazon:

    "The tax rate applied to your order will generally be the combined state and local rate for the address where your order was shipped. Therefore, the sales tax rate applied to your order may be different for an order shipped to your home address versus an order for the very same items shipped to your work address."

    That happens to be the law since that's where legal title transfers.

  • 8 years ago

    It makes sense b/c you were shipping to somewhere in CA. They HAVE to charge you per CA law. Otherwise, you could just order stuff to your cousin or whatever, and they could forward it to you and you could avoid the sales tax.

    Check the TX law. You owe them the sales tax on every online purchase you make anyway.

  • tro
    Lv 7
    8 years ago

    you pay Ca sales tax, the item will be used in Calif. not Texas

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