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|Forum name||Working at Home|
|Topic subject||charging sales tax|
122, charging sales tax|
Posted by maemarie, Thu Apr-26-07 11:23 PM
i am preparing to launch my site where i sell vegan and
vegeatarian snack foods .
i have been given so much advise that it truly scares me .
one bit of advice was i do not need to charge sales tax on the
can any one please let me know if this is true and where and
how do i get the different sales tax info and how to use it on
123, RE: charging sales tax|
Posted by DBeavers, Fri Apr-27-07 06:32 AM
You definitely need to start with your local county/state sales tax office.
Many people wrongly believe online sales are tax exempt. This isn't necessarily the case. If your products, vegan foods are taxes by your city, county, and state, than at a minimum, you will be required to collect those "normal" taxes. Even though your sales come through your website, your location makes you liable to collect and remit the local and in-state sales taxes.
Additionally, your state may have reciprocal agreements with other states to collect and remit sales taxes for online orders delivered into their market.
Your local sales tax office are the place to start.
124, RE: charging sales tax|
Posted by Strategist, Sun Apr-29-07 08:16 PM
The answer is that you DO need to charge tax, but what tax depends on your state.
I live in WA State. When I sell ebooks or anything within my state, through the Internet, I have to charge sales tax (city/state) based on my locality.
I do not have to do that for out of state sales because I do not have offices in other states.
When I speak and sell items in the back of the room, I have to pay sales tax according to where I am standing! So far I've "stood" in 16 places ;) Fortunately I send all tax money to the state and then they divey it up and send it to the cities.
WA State is trying to pass a law forcing us to tax everyone! So beware!
I would start with your state tax office and see if they have a sales tax class.
Do your homework. Nothing is worse then finding out at tax time that you owe $30K in taxes. I've had clients and friends who have been in that situation. It pays to take some classes and then talk to your accountant or CPA... have none... get one. They'll save you lots!
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