State Taxes for Online Shoppers

tjbeaulieutjbeaulieu Posts: 9subscriber
Hello,
 
Just getting started with selling online.  How does one go about charging taxes for the different states and Canada or other countries?  Thanks for all of your help and advice!
 
Theresa JB

Comments

  • VideographyVideography Posts: 6subscriber
    I am not a lawyer. tax accountant, etc....Generally, you do not have to collect sales taxes in any state unless you have a "presence", I.E., an office.  So, if you work from home, then you are probably only required to collect sales tax for the state you live in.
  • nevadasculnevadascul Posts: 3subscriber Member
    Hi Theresa,
     
    State laws vary greatly.  In general, If you are sending the product out of your home state you do not have to assess sales tax.  However, this has changed in some states.  They have enacted e-commerce laws that require the tax be paid either by the seller or the buyer.  The best thing to do is check with your states sales tax office.
  • VideographyVideography Posts: 6subscriber
    They have enacted e-commerce laws that require the tax be paid either by the seller or the buyer.  The best thing to do is check with your states sales tax office.
    The sales tax (legally called the use tax) is *always* paid by the buyer.  The seller only facilitates the tax collection when required.But you are correct, some states have a reciprocal agreement.  I live in northern Massachusetts which has a 5% sales tax and frequently go to New Hampshire to shop, about 20 miles from home.  If I buy a big-ticket item that needs to be delivered, then the seller `knows` from the purchase that I am using the product in Massachusetts and is required (because the store also has locations in Massachusetts) to collect the sales tax from the customer.EVERY state is a little different.  Your best bet is to look on your state`s official website and look up "sales tax" or "use tax".
  • MCSnowMCSnow Posts: 1subscriber
    Here`s a link to the Maine Revenue Services Department. According to their tax bulletin: "There is no Maine sales or service provider tax on a sale or service where delivery is made by the seller to a point outside of Maine, or where the seller arranges for delivery by common carrier, contract carrier, or the US mail to a point outside of Maine." Hope that helps!!
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