I sell products on the internet and I MUST now pay Sales Tax; Do You?

Jan 10, 2020 Last reply: 6 years ago 3 Replies

First reply

Stuart O. Bronstein

The basic rule is that you don't have to pay sales tax for things delivered to a state where you have no physical presence - no employees or assets, either temporarily or permanently during the year. What the Supreme Court decision says is that even if you have no physical…

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I sell products on the internet and I MUST now pay Sales Tax. The Supreme Court of the United States (SCOTUS); in June of 2018 said that, ?I must pay sales tax because I sell on the internet?.



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Do you have to pay sales tax?



Your Thoughts????????



Gregg Brown Chief Financial Officer

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The basic rule is that you don't have to pay sales tax for things delivered to a state where you have no physical presence - no employees or assets, either temporarily or permanently during the year.

What the Supreme Court decision says is that even if you have no physical presence, if you make more than 200 individual sales or more than $100,000 of sales into a specific state during a year, then that state can require that you collect and pay sales tax for that state. Not every state has imposed that rule, but more and more are.

If your operation isn't large enough to make those kinds of sales into an individual states, you don't need to worry about it. If you make those kinds of sales into some states, you don't need to worry about the other states.

You don't have to pay sales tax. Your customers do. Your job is to collect it.

The last time I checked the practicalities were still in flux and you had to be a pretty large online vendor to be subject to sales tax everywhere.

But after you collect it, you have to send it to the appropriate jurisdictions.

Payment processors like Stripe and PayPal can automate much of this for you, and you can also use services like TaxJar.

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