In a recent blog post, we shared that the Supreme Court changed a 20-year-old ruling regarding taxes. Now, taxes can be collected on ecommerce sites. However, it can be a bit of a challenge to determine the proper calculations – especially when it comes to implementation on a website.
If you are a US online business with a retail aspect, then there are a few questions you will need to ask before getting your website set up for charging sales tax. These questions are –
- What states are the primary ones with which you do business – in particular, those with more than 100K in sales or 200 transactions in a state, states with brick mortar locations, and those with inventory/warehouse(s)?
- From and to which address(es) do you ship your products?
- Are any of the items you sell tax exempt?
- Are any of your customer entities or resellers who are tax exempt?
- How do you collect payments?