Calculating Tax on Internet Sales (5 posts)

Topic tags: e-commerce, tax, taxes
  • We have a new client who will be running an e-com store, working with different designers around the US (and one day, around the world if everything goes well.)

    They’ll be selling different designers’ wares, and having the designers themselves do fulfillment. It’s quite possible that one order may contain products from multiple designers from different states.

    How do you calculate taxes on something like that? (The customer won’t know where the products are coming from or even that fulfillment isn’t coming through the site.) 
    Someone from Maine places an order from a designer in Texas and California, and the e-com company is in Maine. Do they get taxed on everything because they and the company are in Maine? Or nothing, because the fulfillment is from Texas and California? Or something else entirely?
    Inquiring minds want to know! 

  • You may want to look at this http://www.avalara.com/

  • @rich-brooks @mitch-rezman   

    All the tax stuff is one reason I decided to get out of retail online altogether – back when this was really mind boggling to keep up with. I spent SO much time updating tax stuff it was unreal.  I had assistants that I trained to do this for me for some time but as those people moved on  - I was back at it.

    Once the ‘services’ business picked up enough – I dumped all the online retail websites of my own.  Now of course, there are lots of affordable options out there.

    Eileen 

  • When you operate a small business, you’re really in two – one is the business your’e running and is the business of accounting

  • @Rich Brooks came across this from https://mytax.illinois.gov/http://www.zip2tax.com


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