Do I need to charge any kind of sales tax when selling products in other states?

Question

I have a website in which I sell products all accross the country.
My understanding is that out-of-state sales are exempt from sales tax. Is this correct?

Answer 1

Handy Dan is on the right page here.

The deciding factor whether or not you have to collect sales tax in a particular state usually hinges on nexus. Nexus can be defined as a physical presence in a state from things like, ownership of real estate, rental of real estate, employees, salesmen who perform functions like collecting outstanding receivables and approving orders or a variety of other things.

However, if you don't go any farther than the post office, UPS or some other third carrier it is pretty safe to say that you do not have nexus in any other state than your own.

If you do your own deliveries or have anything else that is complex, then it might be worth looking into.

Best of luck.

Answer 2

"...out-of-state sales are exempt from sales tax" is putting it the wrong way. You are only required to collect and remit sales tax for sales into states in which you have a physical presence, or nexus, as it is called.

Every state (I believe) that has a sales tax also has a use tax. If you do not charge sales tax for sales into states in which you do not have nexus, the responsibility shifts to the buyer to pay the use tax.

Answer 3

I would ask your tax commission, I do not believe any body here is a tax expert on all 50 states. no offense to anybody here,