State Sales Tax

[ABC3]

When you sell an item via the internet outside your state, do you charge Sales Tax & report it to your home state?

I know that you need to pay Sales Tax (file a monthly report) if sold within your own State.

[Studio-N]

When you sell an item via the internet outside your state, do you charge Sales Tax & report it to your home state?

I know that you need to pay Sales Tax (file a monthly report) if sold within your own State.

I believe the rules of mail order apply: You only have to collect sales tax if you have a store (presence) in that outside state.

The presence part applies when you cross your border to do a show.

[dirtclod]

On the things that go out of state i don't charge sales tax. Things that are sold in state i do collect sales tax. Every thing i sell gets reported in my state Kentucky there is a place to show the amount of things are sold out of state. But they want to know the total of ever thing sold in state and out of state. I'm not sure how other states handle it. If i were you i would check with the state just to make sure they don't come after you in the furture.

[teamroperdad]

Good question, you saved me from havin to ask it.

Hope you get an answer.

Guess I need to type faster!!

[whinewine]

I believe the rules of mail order apply: You only have to collect sales tax if you have a store (presence) in that outside state.

The presence part applies when you cross your border to do a show.

Although the legislators in many states, mine included, are attempting to have sales tax collected wherever & whatever state you've made an internet sale to.

And that sucks.

[GMorris]

When you sell an item via the internet outside your state, do you charge Sales Tax & report it to your home state?

I know that you need to pay Sales Tax (file a monthly report) if sold within your own State.

In the State I live in (Illinois) if you have a sales tax number all sales must be reported, and tax paid only on the items sold within the State. If you every go through a tax audit, (no fun) you will pay the tax you neglected to pay, with interest and a very stiff penalty. I would not take the chance.

[CampbellRandall]

Some states are worse than others. Normally the rule applies if you have ever operated in that state, whether it is an office, warehouse, etc. We have had rental equipment in most states, which qualifies in some cases. CA, for instance, collects tax based on the county and the rates vary. If you even had a sales man live in the state for 6 months, you are locked in to collect tax. Even if we left the state, we required to collect tax unless we close our company and reopen under a different name. Do your homework, but I think for most out of state sales you are safe.

[TimKleffner]

ABC

I contacted my local office of the State Comptrollers office. In TX they are the agency concerned with collection of sales tax.

They were very helpful and willing to help.

Happy tooling

Tim