Taxing online?

Question

i want to sell stuff online, but how does tax work online? i tax where it ships from or where it ships to?

Answer 1

You don't. Two exceptions.

1. You are selling to someone in your own state
2. You have a brick & mortar store in the state where your buyer lives (doesn't sound like this one applies).

Of course, the states have been complaining for years about not getting the revenue and they'd like to change the rules. There is no indication that this will happen.

Answer 2

You would collect sales tax if the item is shipped to an address in the same state as you live in.

Answer 3

Go or call your local state comptroller's office. They are really helpful and then you will know just exactly what you need to do.