Do I have to charge sales tax if I sell items online?

Question

I am starting a business and I live in New York and my bank account is in New York. I will sell a product in the USA and all of my clients will purchase the product online. Do I need to charge sales tax? Thanks in advance.

Answer 1

The short answer is No.

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Since 1992, a still valid Supreme Court decision ruled that companies do not have to pay sales taxes in states where they do not have a physical presence.

That means that the only customers who would have to pay sales tax would be people in New York buying from your website.

Congress has yet to rule that the states can collect such taxes. Internet services cannot, at this time, be taxed by the states under Federal law.

Answer 2

You will need to charge NY sales tax on the total purchase price (including shipping) for all items shipped within NYS. Look up publication 718 on the NY website for the correct tax rates. www.tax.state.ny.us Also, you will need to register as a sales tax vendor in NYS. Look up publication 750.

For all other states, as long as you do not have a physical presence there you do not have to charge sales tax. However, if you hire a third party to do service calls on any of the products that you sell in other states, then you have a physical presence there.

Answer 3

Yes. You still need a sales permet from your county clerk. You will need to charge sales tax. They will send you a form in the mail to fil out automatically and send in a check to your county for what you have collected at that time.
If you are selling on ebay..beware..the IRS are starting to audit ebayers this year.

Good Luck!

Answer 4

Not on products shipped out of New York.

Answer 5

No tax for wholesale transaction. No tax for retail if it is shipped to outside NY state.

Answer 6

See what I wrote you on your other posting