Forums: Discussions for entrepreneurs and small business.

You need to ask the taxing authority in your state.  Sales tax is more formally called a "use tax".  The origin does not matter, only the end user location.  If the customer is in your state, you collect the appropriate sales tax. 



-------------------------

Steve Mann
Internet Videographer
MannMade Digital Video
My Email

Actually sales tax is much more complicated.  You usually have to pay sales tax in each state that you`re considered "doing business" in and each state has a different definition of "doing business".  Usually you are considered "doing business" in a state if you have a presence in the state.

The above poster may be considered to have a presence in every state that they advertise online, in that state.  The above poster may be considered to have a presence in the state where the product is being drop shipped from.  The above poster may be considered to have a presence in the state their organized in, the state they live in, etc.

The poster needs to either hiring an accountant to help with this or read the rules in the different states.




-------------------------

Gina L. Gwozdz, CPA
http://GLGcpa.com
http://TaxTreasures.com

-------------------------

Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

Thanks for the feedback!