Do you put sales tax on your products?

2 replies
I am new to Internet Marketing (especially taxes) and I am wondering how to put sales tax on your products because for every different US state you are selling your product to, you have to get a different % of sales tax.
Income tax is simple but what are you doing with the sales taxes? In paypal I cant even see to which state I have sold the product to, so how does the IRS want me to calculate the sales taxes?
Is there any tax-guide to internet marketing?
#products #put #sales #tax
  • Profile picture of the author Linda Van Fleet
    Hi,

    Unless the law has recently changed you are obligated to charge taxes only to people who purchase in your own state. For example, if I live in Georgia (I do), and sell a physical product to someone in Tennessee, they are not required to pay Georgia sales tax on that product. However, if I sell that same item to someone who lives in Georgia (my state) I must charge a sales tax.

    Laws are changing every day so you should really check your own state laws to make sure you comply.

    Hope that helps.

    Linda
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  • Profile picture of the author Doug D
    I have my shopping cart setup where it will only add the tax if the ship to is in my state, IL.
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