Origin-based and easy simple ways to make money destination-based sales tax collection 101

Let’s say, for example, you live and/or sell out of carlisle pennsylvania. Since pennsylvania is an origin-based state, you charge all customers located in PA the same sales easy simple ways to make money tax rate (6 percent) no matter where they live. If you live and/or sell out of philadelphia, you’re required to charge that same 6 percent PLUS a easy simple ways to make money local tax of 2 percent to all of your customers easy simple ways to make money in PA. List of origin-based sales tax states

Unfortunately, there are not many origin-based states. Most states follow the ever-increasingly-confusing destination-based system. In destination-based states, the correct sales tax rate is based on where the easy simple ways to make money buyer is located (the destination of the sale). The reason this can be more confusing than origin-based states is that states can have hundreds of tax easy simple ways to make money jurisdictions, meaning you could potentially have to charge hundreds of different easy simple ways to make money tax rates,

Here’s an example. Let’s say you live and/or sell in columbia, south carolina. You sell a taxable product to a customer in chesterfield, SC. According to the state of south carolina department of revenue, you are required to charge that customer 8% sales tax. That 8% is the sum of the state rate of 6% PLUS a 2% local tax. List of destination-based sales tax states

For example, you sell via amazon FBA and live in georgia, but your products are shipped to a warehouse in tennessee. Tennessee would consider you a remote seller. If you were based in tennessee, you would charge sales tax based on the rate at easy simple ways to make money your business’s location, because tennessee is an origin-based sales tax state. But tennessee is actually a destination-based sales tax state when it comes to remote sellers. So if your business is based in georgia but have easy simple ways to make money sales tax nexus in tennessee you would do one of easy simple ways to make money two things:

Rule of thumb: states treat in-state sellers and remote sellers differently. Most of the time, if you are considered a “remote seller” in a state, that state wants you to charge the sales tax rate easy simple ways to make money at your buyer’s destination. Some states allow out-of-state retailers to charge a flat use tax rate. Contact the state’s department of revenue if you have questions about what easy simple ways to make money rate to charge.

You are required to collect sales tax from customers in easy simple ways to make money states where you have sales tax nexus. Nexus means “a connection or tie” and can be established by having a presence in a easy simple ways to make money state due to an office, store, warehouse or other presence (including working from your home), an employee, contractor or sales person, an affiliate, economic nexus, or storing goods in a warehouse. If you have nexus in a state, you must collect sales tax from all buyers in that easy simple ways to make money state. Some online sellers will have sales tax nexus in multiple easy simple ways to make money states.

2.) I think I was erroneously charged sales tax. Why could that be? – businesses are required to charge sales tax in states where easy simple ways to make money they have sales tax nexus (i.E. Presence.) so this is one reason why you may be charged easy simple ways to make money sales tax. Also, sales tax is based on a the ship-to address. So if you live in a state with no sales easy simple ways to make money tax, but order something for your nephew in a state that easy simple ways to make money does have sales tax, you may be charged sales tax based on the sales easy simple ways to make money tax rate at the address where you ship the item. Those are just a couple of reasons why you may easy simple ways to make money be charged sales tax when you weren’t expecting it. If you are a consumer with questions about sales tax, check out our consumer’s guide to sales tax here.

3.) I was charged sales tax on the shipping charges on easy simple ways to make money my online order. Why is this? – this depends on state laws. Some states require merchants to charge sales tax on shipping easy simple ways to make money and handling charges, others don’t. Others require merchants to charge sales tax on shipping and easy simple ways to make money handling should some conditions be met. You can read more about sales tax on shipping charges easy simple ways to make money here.

Amazon FBA sellers have to deal with sales tax nexus easy simple ways to make money in their home states and in remote states. Because they have an especially tricky time of it, we’ve put together a guide to sales tax for amazon easy simple ways to make money FBA sellers. This guide even includes the exact sales tax settings you easy simple ways to make money should use in amazon seller central. Download sales tax 101 for amazon FBA sellers now.

Hi, I think I have figuring out nexus down but I easy simple ways to make money want to make sure I have this correct. I have 3 dropshippers, all located within 3 separate states (california, florida, and michigan). The states they are in, I have to charge taxes for the residents that live easy simple ways to make money there that purchase a product coming from the dropshipper in easy simple ways to make money their state. So some products need to be charged tax for a easy simple ways to make money certain state while others need to be charged tax from easy simple ways to make money another state. For example, product A is located in florida; therefore, only florida residents would be charged tax for the product easy simple ways to make money located in florida. A resident that lives in illinois wouldn’t pay tax since the product is located in florida. That part seems to be okay with understanding. Now my question is, since I have drop shippers in 3 different states, does that mean if any person is living in either easy simple ways to make money 3 of those states, no matter which state the product comes from, do they have to charged tax based on their home easy simple ways to make money state or is it only the state the live in easy simple ways to make money that the product is also coming from? I’m working with shopify in specifying taxes and they told easy simple ways to make money me this but I don’t feel it’s correct: “for any fulfillment centre you have in any state, customers from that state will be charged taxes on the easy simple ways to make money order regardless if the products they’re buying are actually fulfilled from that state. So if you had a fulfillment centre in florida, california and new york and a customer was ordering from easy simple ways to make money florida, but was only ordering products that the centres in california easy simple ways to make money and new york fulfill, their order still sees the state’s taxable rate on the cart.” thanks in advance!

I live in nevada, las vegas to be exact. I order on occassion from a company based in new easy simple ways to make money york. Never paid tax when I ordered. Last year, july, they opened a branch or warehouse in sparks, nevada. When that happened I started getting charged sales tax. One, how do I know that when I order I’m actually ordering products from the sparks warehouse? Two, their sites say some things are in new york, some are in sparks, when stock is out in one place, it comes from the other. Yeah? Well how do I know that? I looked at shipping, ground, $18 … 3 day $22, so that means if I order and I pick 3 easy simple ways to make money day then my order should be here within 3 days. THREE days from sparks nv to me? I don’t think so. So I write them about the tax thing and the easy simple ways to make money shipping and this is what they said: “since we do have a facility in NV, and you live in NV, you will be charged sales tax whether the order ships easy simple ways to make money from our NY warehouse or NV warehouse. Both of these items are currently only located in our easy simple ways to make money NY warehouse, so your order will ship in 1-2 business days, and will be in transit for 5 business days.” this is really ridiculous. If my purchase is made TO new york and shipment easy simple ways to make money is coming FROM new york why all of the sudden easy simple ways to make money am I paying taxes? Forget about the 3 day shipping. If I pay for 3 day shipping, no way am I letting them get away with 5 easy simple ways to make money day transit!!!!!!!

The term “nexus” is a tricky one, I’m finding. Every site I run across where people ask “do I have to collect sales use tax” they are answered with “if you have nexus in that state”. That’s where the issue starts.. The definition of nexus is so loose and different in easy simple ways to make money every state, it’s seems impossible to know which states you have nexus easy simple ways to make money as each company has a different situation (tangible, vs non-tangible, warehouse, presence in the state, employees that travel there, etc).

I asked again if they could tell me what causes easy simple ways to make money this nexus. They obliged by saying “because you sell products to customers in WI”. Well, that’s pretty plain cut. Because a customer came to my site, downloaded my software and purchased a license key from me, I should have been collecting sales/use tax from them. How I should have know this is beyond me, as even my tax accountant didn’t know.

What I am trying to find is a list of easy simple ways to make money other states like this. I hear NJ is one. But, I can’t find this list anywhere. It almost feels like right now WI is trying to easy simple ways to make money bully me into paying out of ignorance. I’m all for states rights, but if I have to collect sales tax from customers easy simple ways to make money in other states, I would think there would be one place I could easy simple ways to make money go to find out which states this applies to. I thought I ran across a law somewhere that said easy simple ways to make money states can define nexus their own way, BUT, they must make it “easy” to file and pay these taxes. I would hope “knowing if you have nexus” would be a stipulation too.

Now, WI is making me go back to 2009 and up easy simple ways to make money to 2014 and all WI sales are subject to not easy simple ways to make money only sales/use tax, but WI state INCOME tax as well. Customers that paid the sales/use tax (as they should as the burden falls on them FIRST) I can report as paid. But, anyone that didn’t I pay the tax and a penalty. Even if there is one of these years where all easy simple ways to make money the customers paid the sales/use tax and my burden is zero, I personally still have to pay a fine for not easy simple ways to make money filing.

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