Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 8 years ago

Sales tax on online selling?

I am about to start my own online website/ecommerce business. Is it necessary for me to charge sales tax on my customers orders?

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    Any taxable goods or services delivered in your state are subject to your state's sales tax. Therefore you must collect and remit the relevant sales taxes to your state for those goods or services.

    Goods and services delivered outside of your state are not subject to your state's sales tax and as long as you have no nexus in any other state you are not subject to those.

  • 8 years ago

    In general assume that your home state has sales tax, then, you have to charge, collect and remit sales tax to all sales within your home state to your the Board of Equalization (in the case of CA state).As you have a business that sells products online, you may or may not have to collect sales tax from customers who order from your website. UNLESS an "affiliate" or "solicitor" of your online biz has a physical presence in another state, you are not required to collect sales tax. If the physical location of your business and your customer are in the same state, you must collect sales tax on any purchases made by that person. The sales tax rate is based on the address of the order. If you have more than one location, and you have a location in the same state as the customer, you must charge sales tax. For example, if you have locations in OR and NY, and your customer is in OR, you must charge sales tax, even if the order is shipped from your NY location. If you are in a different state from your customer, you do not need to collect sales tax from that person unless you have a physical presence in that state, but check to be sure your state has not enacted legislation to require sales taxes if you have an affiliate or solicitor in that state.

  • 4 years ago

    Uh, sure you do have - you're there. A actual presence would not merely recommend having a shop open for walk-in shoppers. sure you may get a state tax license, cost tax to CA shoppers, and remit it to the state.

  • tro
    Lv 7
    8 years ago

    you can't legally charge and collect sales tax(which is not your money) unless you are registered with the state sales tax agency

    you would need to be registered with the state you operate your business and charge those customers who are taking possession in your state

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  • 8 years ago

    For orders going to yoru home state, yes. For others, no.

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