sales tax?

[GUJUm0deL]

I asked this in the 'web designers' thread but thought about asking here as well:

Suppose you have an online store based in NYC (the physical location where the products are and where they will be shipped from is also NYC), and a customer living in Californis purchases a product, what state's sales tax would be customer be charged? Is (s)he charged NY or CA sales tax?

Thanks!

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[buck2506]

Right now unless you have a physical presence in California (retail outlet, warehouse, offices, etc.) you don't charge tax. Some states and retailers are trying to cahnge this but right now its voluntary.

 

[nicksims]

Buck is correct. Unless you have some physical presence in that state, you don't pay or charge sales tax.

Do you have sales reps or some kind of employee in another state where the purchaser resides? (or product is shipped to) That may be a different situation.

Nick

 

[CoreyBryant]

Usually no sales tax would be charged in the instance you give, but always check with your CPA to confirm.

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Corey

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[johnwm]

I guess the best person to ask about web design is probably your accountant, or maybe your lawyer. By that logic, it's best to ask a web designer about tax

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[GUJUm0deL]

Thanks for everyone's replies, but I managed to get my client to understand that if he does not have a physical store in the state he cannot charge (sales) tax. So now he's only going to charge tax in NY and no where else.

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Just Imagine.

http://www.imajinarts.com