Where Do I Owe Sales Tax?
At first glance, it seems like this would be an easy question to answer. However, like many bureaucratic policies, it is anything but easy. With the advent of eCommerce and all the tools available for selling products all over the world let alone the country, the question has become even more complicated to answer.
In the simplest terms, sales tax is owed anywhere you sell a product and benefit from the services that the state provides. This could mean roads, trash or any infrastructure that is provided for by tax revenue. All companies are liable for sales tax in the state that they are based. However, sales tax liabilities are not limited to just the headquarters of your company. Using state services also applies to sales reps, brick and mortar storefronts and even warehousing services like Fulfillment by Amazon.
To assist businesses in determining where they owe sales tax, we have created an easy checklist to help you determine if you have liabilities. If you are able to check any of these boxes for any states outside your headquarters, then chances are you owe taxes in that state.
Are you an Amazon seller? Check out our Amazon site!
Want to keep getting great content like this? Subscribe to our newsletter!
If you have sales tax questions, Taxify covers businesses in all 50 states, and you can always contact us for help with this and other complex sales tax issues. For more info on where you might need to collect sales tax, you can also download our “The Truth About Nexus” (Nexus is the legal way of saying “you owe sales tax here”).