April 8th, 2013, 05:42 PM
ECommerce sales and taxes
I'm building an eCommerce application for a client so he can sell his items online nationwide (USA). His store front or "nexus" is in Florida, but this web-site will allow people all over the country to purchase his items online and have them shipped.
I've read up on some sales tax information, but am having trouble finding the specific answers I need. Am I to charge every shipment, no matter the location of the buyer destination, the 6% FL sales tax, and additional 1% county surtax, or will I be charging the sales tax and county surtax based on the origin of the shipping address state and county, or do I just not charge sales tax online?
Nolo.com says this -
"The current default rule throughout the United States is that you must collect sales tax on Internet sales to customers in those states where your business has a “physical presence.” The physical-presence rule is based on a 1992 United States Supreme Court decision, Quill Corp. v. North Dakota, that addressed the obligations of mail-order businesses to collect sales tax on out-of-state sales. The decision has been extended to include online retailers. Generally speaking, a physical presence means such things as
having a warehouse in the state
having a store in the state
having an office in the state, or
having a sales representative in the state
So does this mean I only have to charge FL sales tax to all buyers no matter their location while buying online and do I still charge county surtax?
Last edited by BitZoid; April 8th, 2013 at 06:09 PM.
-- Success achieved from tribulation --
April 8th, 2013, 06:42 PM
From what I've noticed with my online purchases, assuming your "physical location" is considered to be in FL, then, anyone making a purchase from you, that is also in FL, I think you would want to charge at least the state sales tax to them [I'm not sure about that county surtax of 1%, tho.].
The only exception I've found is with sales in TN, if you purchase from a store [online or brick-n-mortar] in TN, they charge you sales tax no matter where you are purchasing from.
April 9th, 2013, 02:29 PM
OK so what I can get from you is I need to charge all customers who are buying the item or shipping to a zip code in florida, the FL sales tax, but do NOT charge taxes to anybody buying from outside of FL? Correct?
-- Success achieved from tribulation --
April 9th, 2013, 02:38 PM
Other than having a data feed I don't know how POS systems keep track of county and city state taxes. I pay 0.25% more in tax on a cup of coffee I buy at the coffee shop nearest my house than I do at my office (San Francisco vs Alameda counties). I generally observe that most eCommerce sites charge me the state tax rate but not the local taxes. However this does not seem to be universally consistent. One of these days consumers will think to audit this ....
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August 22nd, 2013, 12:43 AM
I had a weird one the other day. A customer wanted a copy of their receipt. They were in Illinois if I remember correctly. They said they had to pay sales tax for all online purchases. This was a company, not an individual. I've never run into this before. I thought I only had to charge tax in Florida where I live.
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