Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-15-2016, 04:03 PM
Junior Member
 
Join Date: Jun 2016
Posts: 2
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 06-15-2016, 09:30 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
? 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



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 06-16-2016, 12:14 PM
Junior Member
 
Join Date: Jun 2016
Posts: 2
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Sole prop online business question Kacey Miscellaneous 3 04-08-2015 01:30 AM
Help filing taxes for my business!! 1099/w9/w8 help Pyramidman Limited Liability Company 0 01-31-2012 01:28 PM
Online Business Seller Need Tax Return Help for 2009 stuckinapickle347 Filing Requirements 0 01-21-2011 12:02 PM
How do i start an online selling business? Viviangpinto Sole-Proprietorship 1 12-13-2009 01:57 PM
How do I go about registering for taxes if I am going to do Business in New Jersey? mcrowe C-Corporation 2 03-28-2008 08:34 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.