I have a business license in Michigan. When I do a transaction, I always charge sales tax of 6% (MI sales tax)
If I do a sale over the internet, to a person out of state, whose sales tax do I charge? Could you please include a link? Thanks!
2006-09-10 01:52:46 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Sales tax is determined by the state to which the item is shipped. If you don't have a presence in that state, you are not required to collect sales tax. The customer is then responsible for paying 'use tax' on the item.
2006-09-10 08:39:31 · answer #1 · answered by STEVEN F 7 · 1⤊ 0⤋
call up your states office that you got your sales tax license from.
To the best of my understanding, any purchases that are made where the purchase is to be used/consumed in another state, sales tax can not be collected (or the buyer can request that you not collect it).
Example...I live in Illinois and I buy my cars in Wisconsin. As the car is meant for use and will be registered in Illinois, Wisconsin can not and will not collect sales tax on the vehicle. It is my responsibility to pay the sales tax at my local rate when I register my vehicle (Wisconsin won't even take the money when I try to pay it there...they have much cheaper sales tax rates, but they won't take the sales tax).
For items that most people purchase off the internet (items that don't require state registration), it is the responsibility of the buyer to pay the sales tax in their home state, usually on their state income tax form.
but like I said, contact your local sales tax office (sorry, I don't remember what the department is called)
2006-09-10 02:02:59 · answer #2 · answered by Slider728 6 · 1⤊ 0⤋
You only charge tax for sales within your state. State tax for internet transactions are then up to the individual states to collect on from the buyers. Check your Michigan State Tax Form to see if as a consumer you are asked to claim purchases from other states. In Ohio we have that on our form. It's strictly honor system until they figure out how to enforce it.
2006-09-10 01:56:54 · answer #3 · answered by Anonymous · 2⤊ 0⤋
About 98% of the time I am never charged tax over the Internet. But, there has been a few times that I have. Like I order Sally Foster stuff from the website to support my great niece in Ga. It's a school fund raiser. I was charged tax. But, I buy on eBay, and just about every website you can think of (haha) and I am not charged tax. In the last 8 yrs., I may have been charged tax 5 times. Check with your state licensing board.
2006-09-10 01:59:39 · answer #4 · answered by Nana 6 · 0⤊ 2⤋
Sales tax is based on the ship-to address. If you are in MI and the ship-to is in MI, you charge MI sales tax and remit it to your state. For sales shipped to another state, you would charge the sales tax rate for that state, but you are not required to.
2006-09-10 08:30:14 · answer #5 · answered by misslabeled 7 · 2⤊ 0⤋
you're placing out to sound like a conservative. Say 20% of your income is going to revenues taxes yet you haven't any longer any income tax, thats nonetheless extra effective than 30% income taxes like it is now. If it became into as much as the democrats you would be paying 50% income tax plus 15% VAT tax.
2016-12-12 05:52:56 · answer #6 · answered by lacross 4 · 0⤊ 0⤋
interstate trade is the jurisdiction of the federal government, not the individual states. you shouldnt charge any state tax unless you have facilities in that state.
2006-09-10 01:58:34 · answer #7 · answered by dan 4 · 1⤊ 0⤋
None
2006-09-10 01:54:43 · answer #8 · answered by Anonymous · 1⤊ 2⤋