OK So I have heard and read many different answers to this question. I would like to get your answers if possible...
Do you have to collect sales tax for online sales?
I have heard that you don't have to collect them at all. I have heard that you have to collect them from people who live in the same state that your business is located. I have heard that you have to pay taxes on ALL sales, online or not.
Anybody have a true answer?
Re: Online Sales Tax Collection
My understanding is that you only collect taxes for products you sell in your state.
Re: Online Sales Tax Collection
That is what I originally heard or read, but I have since talked to some people who said you must collect tax on all purchases, etc.
Re: Online Sales Tax Collection
My understanding is that if you have a local presence you must collect a tax i.e. if you have an office in Texas and you make an online sale in Texas then for Texas residents you have to collect a tax. See below for the technical jargon:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_public_laws&docid=f:publ435.108
Re: Online Sales Tax Collection
I wonder if 'Shire Tax' would ever take-off in the UK?... 😀
Re: Online Sales Tax Collection
salisbury;30338 wrote: My understanding is that if you have a local presence you must collect a tax i.e. if you have an office in Texas and you make an online sale in Texas then for Texas residents you have to collect a tax. See below for the technical jargon:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_public_laws&docid=f:publ435.108
That is kind of how I understood it too, but when I talked to my accountant, she said I needed to collect tax on everything. Maybe she is just out of the online loop.
Re: Online Sales Tax Collection
I would show her the article that Salisbury attached