I am new to e-commerce and am setting up an online store in New Jersey. I would like to know how to handle sales tax. Do I have to set up every state's tax or just my own states at 6%?
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#2
Posted 11 November 2003, 22:01
RST or Retail Sales Tax
Untill laws change - Mostly you just need to collect RST for which jurdiction you reside in (or any physical present in any parts of the state). Typically just your own City/State/province level and any Federal or VAT (Value ADDED Taxes - Like Canada's and other contries GST). Just take your "TV" infomercials - they only collect RST in one (or two or more -of they have more warehouses or and office/warehouse in diffent location) states/province PLUS andy VAT needed.
If you check your local state tax law CLOSELY - it may state something like - any consumer that imports goods into there tax jurisdiction may and should pay approperate taxes for the value of the goods.... Thus it would be up to the consumer to pay any LOCAL taxes if not charged. I have yet to here of any TAX AUTHORITY that forces this on standard consumer goods (excluding in CANADA for tobacoo/Cigarettes or other HEAVLY regulated goods etc...)
Check your local State Tax office for more information.
Untill laws change - Mostly you just need to collect RST for which jurdiction you reside in (or any physical present in any parts of the state). Typically just your own City/State/province level and any Federal or VAT (Value ADDED Taxes - Like Canada's and other contries GST). Just take your "TV" infomercials - they only collect RST in one (or two or more -of they have more warehouses or and office/warehouse in diffent location) states/province PLUS andy VAT needed.
If you check your local state tax law CLOSELY - it may state something like - any consumer that imports goods into there tax jurisdiction may and should pay approperate taxes for the value of the goods.... Thus it would be up to the consumer to pay any LOCAL taxes if not charged. I have yet to here of any TAX AUTHORITY that forces this on standard consumer goods (excluding in CANADA for tobacoo/Cigarettes or other HEAVLY regulated goods etc...)
Check your local State Tax office for more information.
