I Have to Charge Sales Tax? But My Business Is Online!

Nina L. Kaufman, Esq.

Nina L. Kaufman, Esq.

Nina L. Kaufman, Esq., owner of Ask The Business Lawyer, is an award-winning business attorney, speaker, and Entrepreneur Magazine online contributor. She saves consulting and professional services companies time, money, and aggravation by serving as their outsourced legal counsel.

Posted on June 14, 2017 in Money & Finance

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Q: Do I have to charges taxes on an online business, even though my business does not have an actual storefront location?

A: You don’t really think that the federal, state and local governments would give up an opportunity to receive tax revenue, do you? 🙂  Generally, any time you sell goods to a customer (whether online or off), you are responsible for paying sales taxes. That’s the rule.

The fun (?) thing about rules, laws and taxes is that there are exceptions. You may not need to collect and remit sales taxes if you are selling goods to a customer outside of your home state. That said, tax laws change at rapid pace–particularly nowadays, when federal, state and local treasuries are desperate to replenish their coffers–so be sure to check with your accountant regarding the situations when you need to charge sales tax to your online purchasers.

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