In California, if you sell and item to someone outside of California, do you have to collect sales tax?

Question

I know you have to collect it for sales to people inside of California, but I don't know if you have to for other states.

Answer 1

It all depends.

Is your business only based in California? Are you shipping via third party carrier (i.e. UPS, post office)?

If the above is true, then the chances are probably very good that you do not have to collect and remit sales tax (to California or the destination state).

However, if you have a store front or other activity in the state where you customer resides there is a very good chance you have sales tax nexus. (Nexus means 'physical presence'). Having nexus means you should be collecting and remitting the sales tax.

...it gets more complex from there.

If your business has even slightly complex transactions it is well worth your time to consult a qualified CPA regarding your activities. States are most aggressive in auditing and collecting sales taxes (as opposed to income), even in other states.

Best of luck!!!

Answer 2

If you are a dealer, technically you are responsible for collection and remittance of sales tax for an item sold and shipped to anywhere in the U.S. Sales by an individual to an individual are not subject to this, although the purchaser may be subject to payment of the taxes, depending on just what the item is.

There are several cases in Federal courts challenging the rights of the various states to enforce this.

Answer 3

not an authority. yet I do loads of on line finding out to purchase and have a small on line e-commerce save. - while you're advertising your products for under you got them, then you easily do not ought to cost sales tax on your products because of the fact this is already been paid. - while you're advertising products which you got wholesale the place the sales tax has not been paid by ability of everyone confident, you would be required to cost sales tax (this does not sound like what you're doing). - while you're advertising products for extra suitable than what you got them for (your sales tax turn into much less), i think of you additionally are required to cost sales tax for those too yet i don't comprehend how everyone might desire to tutor it on a used merchandise. - while you're transport interior of CA, then you easily are required to cost sales tax. - while you're transport from yet another state to human beings in that state, you would be required to cost sales tax in that state. - There are some states that have rules that any purchases despatched there are think to be charged sales tax (WA is one), yet i think of the guidelines are unenforcable for some reason (i don't comprehend everyone who rates the tax).

Answer 4

No only from those people you sell to in California

Answer 5

No they would pay use tax to their state.