Our company is in a state that has sales tax, while we often make sales to customers in states that don't have it. If someone were to place an order in a state that doesn't have sales tax, but drive to our location to pick it up - should they be charged sales tax?
Sales Tax Question
Answers
You should talk to your CPA firm because I think you may have to consider:
-your state laws on taxable transactions
-whether your out of state customers can provide a Sales Tax Exemption certificate that you can accept.
I would guess that if the shipper of record is not a common carrier, then sales tax needs to be collected.
But Len is correct. Better to side on caution that go through a Sales Tax Audit!!!!
Many of the Sales Tax laws recognize tax due based on where title changes hands. Generally, if someone takes possession at your location in a state that charges sales tax, if they cannot provide a certificate of exemption that your state accepts, it is irrelevant where they are from. They would need to be charged sales tax.
1
Very well described.
Filed Under:
Tax