Business Owners v Outside NY shipping

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

Thanks for any help you can provide.

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.

you dont collect sales tax for anything shipped out of state…

Can I just ask for your experience? Legit business that files tax returns?

I have a business which I file a tax return

Is the New York State sales tax rate based on the point of sale or point of delivery?

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

ebay for example. they only charge tax if the item is shipping to the same state that the business is located in.

We used to sell auto parts out of state every day. You do not collect sales tax for items sold out of state.

99 percent of the items I sold went out of state.

bastards still charge tax a lot of times when they shouldn’t too… amazon is great for it.

when its coming into NY yes because its a NYS law.

I have a legit tax filing business and I don’t tax clients out of state…I am a DBA as well.

do you even know what DBA means?

sometimes you really do come off like an idiot, you MAY not be one… but you come off like one…

/walter rant

You should talk :picard:

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 phrasedoing 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

I have a payment program that does it all and there is no tax applied for out of state sales.

Listen to your friends, not your partner.