Sales Taxes
A sales tax is charged at the point of purchase for certain goods and services. If you have a brick and mortar store, sales tax is easy to determine. You simply charge your customers the sales tax required by your jurisdiction. If you have your store in Ogden, Utah, for example, you will pay the appropriate taxes for that area. These taxes vary from jurisdiction to jurisdiction.
WWW.BUSINESS.GOV/GUIDES/TAXES/STATE.HTML
But how do sales taxes work online? If your business has a physical presence in a state, such as a store, office, or warehouse, then you are required to collect the appropriate state and local taxes for items sold. This presence is called a nexus. If you do not have a nexus in a state, you do not have to collect sales tax. Each state defines a nexus differently, so you should contact your state’s revenue agency to determine if you will need to collect sales taxes. You can find your state’s agency by going to http://www.business.gov/guides/taxes/state.html.
On the other hand, states cannot require mail-order businesses and online retailers to collect sales tax unless they have a physical presence in the state. This means that if your business is in Ogden, Utah, you will have to charge the correct taxes for your state, but those outside of Utah will not be required to pay sales tax.
Note: If you have business registered offshore with an offshore bank account then you may not be eligible to pay sales tax.
I’d like to hear what you’ve got to say about business accounting. Please leave a comment…






Hey, muchas gracias for this new entry – I love learning more about making money online.