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Tax question


Pennie

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I live and have my business in North Carolina. I often go to Chicago, IL and have sales there, too.

I have a Tax ID for North Carolina and also was informed by the Illinois Department of Revenue that I needed one for Illinois, too. When in Illinois (even though I don't live there) I collect, report and pay the sales tax based on only the sales I make in Illinois.

You may want to check and see what requirements New York has.

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I also live on a state line. When you contact the dept of revenue for the state you do not live in you let them know that you are only there for "x number of shows" and they will set you up as a out of state vendor.

The reps frequent the shows around here. I would not do a show without the tax stuff taken care of. Not going to run the risk of shut down.

HTH

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Since we are kinda on the subject, out of state website sales we do not tax right? It just seems like lately I have been getting taxed, like from JCPenney etc. Just wondering what is going on with that. :confused:

It's because JCPenney has stores in several states. Each state where they have a store, they will charge sales tax. It's different for us where we are only in one place, so we only charge sales tax for that place.

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Stores tax wherever they have a presence. JCPenney would be charging tax for your state if they have a store in your state.

Unless you have a sales tax license in other states than your own you would not charge sales tax to other states when you sell on the internet.

I'm in Kansas. If I venture into Missouri to do a craft show and obtain a one-time license for that, that would be different than me being setup to always collect taxes on sales to Missouri.

HTH

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I live in Virginia and collect taxes from local sales. I have a standard Sales and Use Tax Certificate and must collect taxes in VA and report and file a return. I also collect them on my website for customers ordering in VA.

I also have a license for PA as I sometimes do a show out there. I must collect taxes when selling in PA and report it and file etc. But I am licensed as a "Transient Vendor" as I don't live there and only travel there for this show.

Its best to contact the state you intend to sell in and find out what is needed. It didn't cost me anything to get licensed in either state and you can do it all online.

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I also have a license for PA as I sometimes do a show out there. I must collect taxes when selling in PA and report it and file etc. But I am licensed as a "Transient Vendor" as I don't live there and only travel there for this show.

Candybee, as a Transient Vendor in PA are you also required to collect PA taxes from internet sales? I have not looked into this with my MO one yet as my site is not up yet.

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