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Lee-Lee

(6,324 posts)
9. Online taxes are complicated
Thu Mar 29, 2018, 02:08 PM
Mar 2018

The law says a retailer must collect sales taxes online if they have a “nexus” in that state.

In all states, for example, if you have a retail storefront or warehouse in that state then you are required to collect sales tax on any sales in that state, even if it was packed and shipped outside that state.

So if you have a warehouse in PA and retail shop on VA, if you ship from PA to VA it must be taxed. But if you ship to a state where you don’t have any physical presence you don’t have to charge that area sales tax.

Where it gets messy is what constitutes a “nexus”. Some states go so far as to say if you showed up and worked a trade show for one day in that state it counts and now you must charge sales tax. Others won’t do that.

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