When you guys sell products, how do you do tax for items shipped outside the state? I have a business entity going to be started here in NY (Erie CO) and will be offering items online which will be shipped.
I know a few guys on here do this sort of thing so looking forward to your responses.
I have heard different things but I am just looking for someone who has WORKING EXPERIENCE with this.
Situation 1) Item sold by me to someone in Erie Co
Situation 2) Item sold by me to someone outside of Erie Co but in NY State
Situation 3) Item sold by me to someone outside NY State
Situation 4) Item sold by me to someone outside the US
As long as the buyer is out of state, they are tax exempt when shipping the item out. I dont charge sales tax to out of state buyers if I ship to them.
Is the New York State sales tax rate based on the point of sale or point of delivery?
Answer
The point of delivery generally determines the sales tax rate to be applied to a transaction. Therefore, in computing the sales tax due, the rate to be charged is the total of the New York State tax rate in effect in the jurisdiction where delivery takes place, plus the local rate in effect in that jurisdiction, plus the MCTD 3/8% rate, if it applies. For taxable sales subject to the same tax rate, do not compute sales tax on each item separately. Instead, compute the tax on the total amount of the transaction. However, if separate sales are subject to different tax rates, then compute sales tax on each separately.
i used to run a web store… and also common sense… look online everywhere… you are only charged sales tax if you are shipping it to the same state the business has a physical presence in…
Mike from innovative will have good feedback, ask him, or lookup the laws yourself
On a buyers side here, all of our vendors do NOT charge us sales tax regardless of which state it goes to. However, when we create the purchase order and pay it we always have to add in the sales tax for the items as we have to prove what we paid for was delivered (public company).
The phrase “doing business as” (abbreviated DBA or d/b/a) is a legal term, meaning that the name of the business or operation does not include the legal name of its proprietor, the names of all partners, or the official registered name of the limited partnership or corporation that owns it.
so yes, I have a DBA. call me an idiot all you want, it still answers his question.
edit: I’m confused as to how having a DBA makes me an idiot.
To be honest I have 4 DBA’s all inactive. All they take is someone to register the name downtown with $25 bucks
I appriciate th responses. My partner I am filing the corporation papers with is convinced that the NY IRS agent said he needs to apply sales tax on all purchases to other states and is all worried that he needs to find the tax rate for each one. I can’t possibly think of any thing of that which makes sense unless somehow he took anything sent into NY had to be taxed and got confused. Thank god he’s just the artist. Haha