Here is the background to my questions.I am a Canadian citizen residing in Canada.I am about to publish my first website for Internet Marketing selling purses, handbags, costume jewellery to consumers within the USA direct from my vendor in Florida.
I have read the piece about collecting Sales Tax and that unless this is a physical store, I am not required to collect these taxes.
In general if you do not have physical presence in a state, you do not need to collect sales tax. This is related to NEXUS. But there are always exceptions and each state has different rules regarding nexus. Nexus depends on what you're selling, how items are distributed, location of supplier, whether you use sales reps, and other factors. We help small business file multi state sales tax and help with nexus analysis.
If someone purchases a physical product online from a website and they live in the state that company operates out of then they must pay sales tax. However, many states have different laws regarding internet sales tax and they can be hard to follow and understand. I would talk with a US tax accountant and get their opinion on the best way to follow to make sure your equal and square with uncle sam.
I'm hoping it stays that way. It would be a nightmare to keep with all those online purchases for tax purposes. Especially since a large number of online businesses are mostly sole proprieter.
Direct means something that are conventional type of marketing, like mouth marketing, referrals, newspapers, tv ads,etc.
I don't think all will follow this.
I'm hoping it stays that way. It would be a nightmare to keep with all those online purchases for tax purposes. Especially since a large number of online businesses are mostly sole proprieter.
Could not remove link to 'couch blog' because it was in the footer.
Your shopping cart company should provide you with a field for tax calculation. If taxes are required, they will add them automatically. (This is typically an issue only with hard goods.)
That holds true for affiliate companies as well, since they have the shopping cart built in.
The only time you will need to be concerned with sales tax is if you personally build the item and ship it from your own warehouse.
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zhangxiaohe | Window Shopper | 5/6/2012 - 9:25 am
zhangxiaohe | Window Shopper | 5/6/2012 - 9:18 am
StatesSalesTax | Window Shopper | 7/11/2011 - 11:48 pm
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