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Ecommerce Tax Question

by tylerwhite94
4 replies
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Hello everyone, I'm hoping someone can give me some expertise for tax collection for an online business. I live in Florida and will only have nexus in florida, I'm not using any fulfilment service. I know there are origin based and destination based tax states, with Florida being a destination based state. My first question.. if I plan on selling to any state in the U.S. do I need to register to collect taxes for all 50 states, meaning registering for every single state ? For origin based states I collect taxes at a rate based on where I live, but are the taxes still paid to state of the buyer (but just at my home tax rates ) correct? I plan on integrating tax jar with my woocomerce to ensure I'm collecting the right amounts and the piece of mind from not having the calculate the rates for every order myself (state, district, city, jeez) but I want to file the taxes myself. I believe tax jar charges about $20 per state to file it for you.. Sorry for the length and thank you !
#ecommerce #question #tax
  • Profile picture of the author tom804
    Honestly for the best answer you need to contact your state tax department.
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  • Profile picture of the author DWaters
    I totally agree with the suggestion above. For tax advice on the warrior forum you may get ten different un-qualified answers from ten different people. Ask a tax professional for the best advice. H&R Block business offices should have a business advisor who may be able to help you.
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  • Profile picture of the author sumit@247easysupport
    I agree with both, doing business online comes with additional legal and financial considerations, particularly in the areas of taxation, privacy, and security etc. I also suggest you to have meeting with a tax professional to get accurate advice. Thanks!!
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  • Profile picture of the author ScooterDaMan
    I have written quite a few articles about eCommerce and tax. I also live and operate eCommerce websites in the state of Florida so I am well aware of the tax laws there. You ONLY are required to collect and remit sales tax if the shipping address is in the state of Florida. You DO NOT collect or pay sales taxes if the ship-to address is anywhere else in the world. In Florida, it goes by the ship-to address, not the billing address - it's a "use tax" (i.e. it is being used in the state of Florida if it ships there). You are required to remit not only the state sales tax, but also the discretionary tax charged by the county that the package is being shipped to (e.g. Miami has a discretionary tax of 1% on top of the state tax of 6%, so the total tax due to the state is 7%). Also unique to Florida, any amount you charge for shipping is also taxable.
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