Sales tax information?

Question

Hi all,

My company is in PA, We only charge tax to customers who are in PA. Now if a customer is in MN and he wants to ship goods in PA. Do i have to charger the sales tax to him?

Please help.

Thanks
Utpal

Answer 1

I would say yes. Anyone could say they live out of state and have it sent to an address in state to beat the state out of the sales tax. Since it's staying in state, charge the tax. Or go to your state's website and check out the rules. I think you may find if it's shipped within the state, you'll have to charge the tax.

Answer 2

Depending on the state you are collecting tax for, sales tax is either based on your location or the ship to location unless shipping out of state. In PA, you would charge tax based on the ship-to address if it is within PA. The billing address has nothing to do with it. If the customer takes delivery of the product within PA, then PA sales tax is due.

Answer 3

If your customer is going to use the goods in PA (where they are having the product shipped) then most likely you'll have to collect the PA sales tax. The only way to be absolutely sure is to check with the state of PA. In the meantime, collect the tax and remit it.

Answer 4

If you're in PA and are shipping to a PA address, then yes, you charge PA sales tax. It doesn't matter where the purchaser lives.

Answer 5

I'm pretty sure it is based on the bill-to address, not the ship-to address. If the bill-to is in PA you need to charge taxes, because that's where the "customer" is. Like someone who walks into a flower store and has a bouquet shipped somewhere. Check your states tax website, they usually have answers to stuff like this, or an e-mail address where you can post questions.