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Old 06-15-2016, 04:03 PM
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For online business taxes

Hello, I want to start a online clothing retail website. Which States do I have to charge sales tax and is it mandatory? I'm in California and I understand I have to charge sales taxes that buys my products online who lives in California, but what about all other States? Do I charge them all sales taxes? or can I not? Thanks for your help.



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Old 06-15-2016, 09:30 PM
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? Hello, I want to start a online clothing retail website. Which States do I have to charge sales tax and is it mandatory? I'm in California and I understand I have to charge sales taxes that buys my products online who lives in California, but what about all other States? =====>>It depends; aslongas you have a business that sells products online, you may or may not have to collect sales tax from customers who order from your website. ;as you said it is accurate to say that you need to charge sales taxes that buys your products online who lives in your home state of CA; however, the current default rule throughout the US is that you must collect sales tax on online sales to customers in those states where your biz has a physical presence, I mean aslongas you have a warehouse in the state
; a store in the state
; an office in the state, or a sales representative in the state or etc. So I may state that the corollary to the physical presence rule is that UNLESS you have a physical presence in the state, you generally are not required to collect sales tax for an Internet-based sale to someone in that state. Say, you are on online retailer located in in LA CA and make a sale through your website to a customer in Tacoma WA,a state where your biz has no physical presence: then, in this case you are not required to collect sales tax from the Tacoma customer.One more tip; in cases where the online retailer does not have to collect sales tax, it is the customer?s responsibility to pay the tax in which case it is known not as a sales tax but, rather, a use tax. So in the example above, the Tacoma client needs topay USE TAX to WA himself. However, because online sales tax is a subject of ongoing debate,as said, you should consider checking in periodically with each state Department of Revenue to see the rules of each state.


Do I charge them all sales taxes? or can I not? =========>it depends; Basically as you can see, collection of sales tax on online sales has been a matter of ongoing debate both within individual states and at the federal level. In general, as sauid, a merchant is not required to collect sales tax unless the merchant has a "physical presence" in that state.More recently, states have been attempting to counter this decision by requiring sales tax to be collected if an "affiliate" or "solicitor" of an online company has a physical presence in that state. Several states, including New York, Rhode Island, and North Carolina, have written legislation requiring sales tax in such circumstances. Other states may be joining the list, but these laws are also being challenged. This situation is constantly changing, so check with your state department of revenue for more information.so you need to check it with each state



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Old 06-16-2016, 12:14 PM
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Thank you

Thank you for your helpful tips. Yes, it is very confusing whether to charge sales tax for online business to other States or not... I've been researching a lot but it seems there's not a simple yes or no answers... I guess I will have to discuss with the CPA and go further. Thanks again for your help. Really helped a lot.



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