Hi, Is there any sales tax for internet sales? I read somewhere its not taxed but some place said its taxed. I live in california, planning to sell digital items. Thanks, CK
I believe you have chare a sales tax on sales to residents of California. I would check with an attorney or a tax advisor on your responsibility in California.
Hi! It's all about nexus..if or if not you have a physical location within the given state. Let's take a recent test case..Harbor Freight Tools. I am Tennessee..and Harbor Freight now has a retail store here..so..even if I ordered over the internet..I would have to pay sales tax. Even so..I've always had to pay sales tax even before the retail store. Why? They have a office or warehouse located in Tenneessee. I can only speak for Tennessee...your milage may vary. As has been said..if you live in California..you need to check the laws for California. I don't believe services as the ones I provide are taxed anywhere..but that could change as well. Bryon
California and some other states tax no matter where the buyer lives. You'll want to check for the individual state. In addition, check for your county and city, since they may tax you as well. Just wish you lived in Montana or Florida, no state tax.
You are required to collect and report sales tax on all sales with in your own state unless they exclude certain sales like food and clothing. You need to look up the tax laws for your state or call your state sales tax revenue office. Also most states require the person buying something from another state to report it and pay use/sales tax on that item. In my state, New York, I checked when I was selling Online dating memberships and there was no requirement for sales tax for those. However, sales from eBay and such are taxed. Digital sales are hard to track and prove but if you are going to run it as a real business, it is best advised to not rely on advice on here and to check the tax laws for yourself.
It depends on where the business is located. Some states have passed the law to impose taxes on online sales, some haven't done it yet. For example in Boston there is no taxes yet. But they are about to pass the law I hear.
In New York, you have the option of pay a use tax of $25 on your state income tax form if you are a consumer to cover all stuff you bought Online or out of state. Basically it is blackmail because they say they will investigate if you fail to pay it. I pay it to avoid the aggravation because I do not keep track of all my purchases Online.
This is quite confusing I think I will ask authority for this, where the best place to go? Thanks, CK
In every city office, there is a place where you can register your business. They may have those answers.
The best things in life are free, but sooner or later the government will find a way to tax them. ~Author Unknown