do i need to collect sales tax on an order made from out of state?

Answer 1

The correct answer is it depends on your business activities in the state where the transaction took place, usually the point of delivery.

If you have any type of physical presence in the state where the transaction takes place, then you need to collect sales tax for that state. Here are a few examples:

1. The business actively solicits sales in that state using sales reps.

2. The business owns/rents/leases real estate or a PO Box.

3. The business uses a 3rd party to actively solicit sales or make repairs for warranty purposes.

4. Deliveries of merchandise is made using company vehicles.

If you send catalogs or merchandise by common carrier and have no other physical presence in the state, then the business is not required to collect sales tax.

Answer 2

Not in most states but you should check with the state agency that collects sales tax.

Answer 3

If you are used to charging sales tax, call the entity to whom you pay your sales tax to and ask them.

Answer 4

It depends on if your business has a "business presence" in that other state and if not, what your state requirements are.

You may want to try to look up the laws online. I know you can in some states.

Answer 5

Sales tax only apply to intrastate commerce. Interstate commerce is sales tax-free.

Answer 6

Generally no, as long as it's not being delivered within your state.