Sales Tax Blog
Stay up to date with the most recent news and updates
Five Things to Know About Marketplace Collection Laws
Online marketplaces, such as the ones operated by Amazon, Walmart, Etsy, and eBay, are popular sales channels for many ecommerce sellers and the volume transacted through them has grown dramatically over the last few years.
New York Online Marketplace Facilitator Found to be a Vendor Jointly Liable with Its Third Party Sellers for Sales Tax Collection
The New York State Department of Taxation and Finance has issued as advisory opinion finding that an online marketplace with nexus in New York (NY) was a vendor with respect to third-party sales it facilitated on its platform, and the marketplace and its third-party sellers were jointly liable for the collection of sales tax.
SALT Deduction – Should I Deduct My State and Local Income or Sales Tax?
As part of the state and local taxes (SALT) deduction you may be able to deduct certain taxes you paid throughout the year on your personal income tax return (form 1040, schedule A, line 5) .
Sales Tax Implications of Drop Shipping and Print on Demand
Drop shipping is a business model where you don’t keep inventory of the products you sell. Instead, you purchase them from your supplier only after your customer places an order with you. After you receive the order you have your supplier fulfil it and have it shipped directly to your customer.
Pennsylvania and New York Issue Post-Wayfair Guidance
Pennsylvania In response to last summer's SCOTUS decision in SD v. Wayfair the Pennsylvania (PA) Department of Revenue has issued guidance on the sales tax collection responsibilities of remote sellers and marketplace facilitators. Pennsylvania requires any person...
District of Columbia Enacts Economic Nexus, Marketplace Facilitator Collection Requirement, and Digital Goods Sales Tax
District of Columbia Enacts Economic Nexus, Marketplace Facilitator Collection Requirement, and Digital Goods Sales Tax On December 31st, 2018, the District of Columbia (DC) enacted the Internet Sales Tax Emergency Amendment Act of 2018, which imposes remote seller...
Sales Tax Sourcing
How would you know which sales tax rate to apply to a sale? Would it be the rate at your place of business or the rate at the customer’s location? What if the customer asks that the goods be shipped to a third party location in a different state – what rate would apply then? And what if you receive and approve the order at your place of business, but fulfil it at a different location – would that be a factor in determining the proper tax rate to be charged?
Sales Tax Nexus
Nexus simply means a link or connection between a state and you (or your business entity). A state would be allowed to impose a tax or a tax collection obligation on you (the out-of-state seller) only after you establish that “special” connection with the state through your activities there. The tax laws regarding nexus vary among the states, but all state laws must be consistent with certain constitutional requirements.