islandgirl Posted January 24, 2006 Share Posted January 24, 2006 I am setting up my website with a shopping cart and wondering if I need to charge sales tax?? Some sites charge tax and some don't?? This stuff makes me crazy:p Also do I charge sales tax on shipping? Is each state different?? Quote Link to comment Share on other sites More sharing options...
Monica Posted January 24, 2006 Share Posted January 24, 2006 Set it up to just charge sales tax to in state customers. There is no sales tax on shipping. Quote Link to comment Share on other sites More sharing options...
islandgirl Posted January 24, 2006 Author Share Posted January 24, 2006 Thank you!!!! Quote Link to comment Share on other sites More sharing options...
prestopotwaxmelter.com Posted January 24, 2006 Share Posted January 24, 2006 I haven't heard one way or the other on this issue. However, my CPA is pretty darn good about keeping my up to snuff and he hasn't said that I need to collect tax from every person I sell to outside my home state. The bulk of my sales is outside my state and also sell quite a bit internationally.Each state is different so I think you will have to look into what your state requires. However, for my state I charge sales tax for any sale that would be shipped within my state. Also, I must charge tax on shipping and handling as well. Most people hate having to pay the tax on S&H but it's the law. Anything outside my state and country, I've never collected sales tax. For some that's the beauty of purchasing on the internet. The buyer doesn't have to pay sales tax. Quote Link to comment Share on other sites More sharing options...
BACKWOODS Posted January 24, 2006 Share Posted January 24, 2006 You only need to collect sales tax in your home state, and unfortunately I believe Prestopotwaxmelter is correct on collecting sales tax on shipping. Shipping is considered income because you are collecting the money and you then deduct it as an expense. Quote Link to comment Share on other sites More sharing options...
angiebaby Posted January 24, 2006 Share Posted January 24, 2006 I haven't heard one way or the other on this issue. However, my CPA is pretty darn good about keeping my up to snuff and he hasn't said that I need to collect tax from every person I sell to outside my home state. The bulk of my sales is outside my state and also sell quite a bit internationally.Each state is different so I think you will have to look into what your state requires. However, for my state I charge sales tax for any sale that would be shipped within my state. Also, I must charge tax on shipping and handling as well. Most people hate having to pay the tax on S&H but it's the law. Anything outside my state and country, I've never collected sales tax. For some that's the beauty of purchasing on the internet. The buyer doesn't have to pay sales tax.That is weird, do you pay tax on stamps at the post office? My understanding is that postage is a service, not an item that you are selling. If you go to the car dealership, they charge tax on the parts that you buy but not on the labor since it is a service.My understanding is that sales tax is for items within the state that you are located. Out of state transactions are not eligible for state sales tax. Some states will incorporate out of state transactions in their income tax forms (I know that Idaho does this...where if I live in Idaho and purchase something online from out of state, they ask you to report and pay the sales tax to them).But I guess your state is trying to get income from whatever they can! Doesn't seem right. Quote Link to comment Share on other sites More sharing options...
islandgirl Posted January 24, 2006 Author Share Posted January 24, 2006 Just got an email from my CPA.. Told me to charge sales tax to people in my state. All other states have different interenet rules.. Also told me to charge sales tax for shipping in state.... Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted January 24, 2006 Share Posted January 24, 2006 Whether you charge sales tax on shipping varies from state to state. When I used to live in WA it was a requirement to charge sales tax on shipping and handling. Quote Link to comment Share on other sites More sharing options...
SnowCow Posted January 25, 2006 Share Posted January 25, 2006 in texas you have to charge tax on shipping too. i don't often ship stuff through UPS or FedEx, so i don't remember if you have to pay tax when going through a shipping company too. if not, maybe we have to collect tax b/c it's more of a shipping AND handling charge (the service of us shipping and packaging). dunno... Quote Link to comment Share on other sites More sharing options...
candlekisses Posted January 25, 2006 Share Posted January 25, 2006 My accountant said to charge sales tax for orders in state. That is the way I have it set up, till the law says otherwise.Have you started exchanging links for the ratings in the search engines? Quote Link to comment Share on other sites More sharing options...
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