Forums: Discussions for entrepreneurs and small business.

Hi everyone,

This question is for people who have an e-commerce company that have sales in other states.  How do you keep track of the taxes??  What resources have you found that have helped you with dealing with the sales and use tax of each state?  I've bought numerous stuff online and haven't been charged tax before and I'm not sure if it's because the company is not being compliant or if it's because I live in Texas.  I've read some stuff on Nexus, but still confused.  So if you have a website with some great information that you've used that would be very helpful!!  Also, did you file for a sale and use tax ID for each state??

Thanks!

Tina

In most states, there is no tax on an out of state sale as long as the product is shipped to an out of state location.  However, you need to check with each state because some states have changed their laws due to e-commerce sales.  These states require a tax be collect at eithr point of sale or delivery no matter where the product is delivered to.

When you buy a book at a bookstore, you usually pay a sales tax. If you buy the same book online, you seldom pay sales tax. However, if you do not pay the sales tax, you may be liable to pay a use tax instead.