Results 1 to 4 of 4
  1. #1
    Affiliate Manager Lionstail's Avatar
    Join Date
    January 18th, 2005
    Posts
    99
    With some dropshipping that I've been doing recently I find myself suddenly in the position of having to collect sales tax when I sell an item within the same state. Suddenly I find myself having registered for sales and use tax in over a dozen states and now am obligated to submit tax returns to each on a monthly, quarterly or annual basis depending on the state. Since I'm hardly ever going to owe tax to the majority of these states, I'm finding the requirement of all the reporting to be disproportionately burdensome.

    I was wondering if anyone knows of an easy solution to this problem, such as cheap software to keep track of all this and create returns or an inexpensive accounting service that specializes in helping businesses file these types of returns.

    Any advice would be greatly appreciated.

    Thanks, Dave

  2. #2
    ABW Veteran Student Heyder's Avatar
    Join Date
    January 18th, 2005
    Posts
    5,482
    You should only have to pay sales tax within the states you operate from.

  3. #3
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    1,086
    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Heyder:
    You should only have to pay sales tax within the states you operate from.<HR></BLOCKQUOTE>

    Unfortunately I think the answer is a lot more complex and your best bet is to get an accountant. As I recall, it's any state in which you have a physical presence. Doing things like having a contractor in a different state might create a situation where the state claims you owe sales tax.

    States also don't companies building a client base in their state then move to avoid sales tax. You end up needing an accountant, and it is very possible for an individual to end up owing sales tax in multiple states.

    sound thinking

  4. #4
    Full Member
    Join Date
    January 18th, 2005
    Posts
    292
    Hey Organic--

    We're always getting states trying to hose us down on sales tax. We've had people from every state-- and I mean every state, say that we owe sales tax to them. However, other than the states where we actually have offices (WA and FL), we have proven that we did not in fact owe sales tax there.

    As far as I know, the Internet Tax Freedom Act (ITFA) is still in effect, providing a federal umbrella to the barrage of state sales tax.

    From what I've heard from our accountant, most of the game is just remaining steadfast knowing that you don't owe sales tax there.

    Bryan Simonson
    bryan@smoothcorp.com
    SmoothCorp Affiliates
    iFLOOR.com/3%/sale/avg.sale=$800
    RugArea.com/12-14%/avg.sale=$400
    CornerHardware.com/6%/avg.sale=$80

  5. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Featured: Choosing server location (Amazon tax/Sales tax)
    By DealSucker in forum Affiliate Tax Laws
    Replies: 9
    Last Post: January 26th, 2015, 05:33 PM
  2. Sales-Tax Nexus / Streamlined Sales Tax - U.S. Congress
    By markwelch in forum Affiliate Tax Laws
    Replies: 25
    Last Post: February 20th, 2010, 02:35 AM
  3. Florida Lawmakers target online sales (Sales Tax)
    By gamweb61 in forum Florida Affiliate Tax
    Replies: 5
    Last Post: November 17th, 2009, 01:41 PM
  4. Florida Lawmakers target online sales (Sales Tax)
    By gamweb61 in forum New York Affiliate Tax
    Replies: 3
    Last Post: November 13th, 2009, 04:54 AM
  5. Impact of sales tax collection on Amazon's NY state sales
    By emuflies in forum New York Affiliate Tax
    Replies: 5
    Last Post: April 4th, 2009, 04:21 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •