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Old 12-01-2017
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Default Collecting US state tax with stealth account

I have stealth accounts collecting tax in Canada. I have a tax exception certification from a bordering state where I purchase goods

I have dabbled with sales in the USA in the past but I am looking to expand there.

At what rate should I be concerned with sales tax and collection with selling on Amazon.com? Is there a certain dollar figure where I should start collecting and investing time in collection?

In Canada you are legally required and responsible for all sales tax after >$30,000 CAD in sales. I have the impression its a bit more complicated in the USA.

Do you collect US sales tax? When did you start? How do you handle it and remit / collect to each state?
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Old 12-01-2017
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Default Re: Collecting US state tax with stealth account

You are supposed to collect sales tax in the states you operate business in. We have several states with no sales tax and no would be collected if you operate in one of those states.
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Old 12-01-2017
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Default Re: Collecting US state tax with stealth account

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Originally Posted by yankee View Post
You are supposed to collect sales tax in the states you operate business in. We have several states with no sales tax and no would be collected if you operate in one of those states.
Isn't that only if you operate a brick and mortar store in that state?

I've never collected any sales tax from sales in my own state, or from any state, and my tax guy has never said anything about it. I also don't have a retail license or a brick and mortar store.

@OP - I recommend against getting involved with state sales taxes since I don't think it's at all necessary for you.
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Old 12-01-2017
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Default Re: Collecting US state tax with stealth account

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Originally Posted by phaz0rz View Post
Isn't that only if you operate a brick and mortar store in that state?

I've never collected any sales tax from sales in my own state, or from any state, and my tax guy has never said anything about it. I also don't have a retail license or a brick and mortar store.

@OP - I recommend against getting involved with state sales taxes since I don't think it's at all necessary for you.
Each state is different but I would almost guaranty that you are supposed to collect sales tax to sales in your own state unless you are in a sales tax free state.
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Old 12-01-2017
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Default Re: Collecting US state tax with stealth account

Limited research I just did said that one of the two requirements for collecting sales tax in a state is for your business to have a "sales tax nexus" in the state your customer is buying from. Google says this means "sufficient physical presence". So by that logic I shouldn't be required to collect any sales tax since none of my businesses have any "physical" presence in any state.

https://www.bigcommerce.com/blog/ecommerce-sales-tax/

https://www.google.com/search?q=sales+tax+nexus

OP - I recommend either asking an international commerce expert or doing some in-depth research of your own.
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Old 12-01-2017
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Default Re: Collecting US state tax with stealth account

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Originally Posted by phaz0rz View Post
So by that logic I shouldn't be required to collect any sales tax since none of my businesses have any "physical" presence in any state.

https://www.bigcommerce.com/blog/ecommerce-sales-tax/

https://www.google.com/search?q=sales+tax+nexus

OP - I recommend either asking an international commerce expert or doing some in-depth research of your own.
Oh? You drop ship only? No warehouse? No office? No shipping facility? No work space for employees?

Many states go as far as to say if a product is housed even if it never leaves a trailer(such as Alabama), sales taxes must be collected for in state sales. Amazon collects sales tax in Multiple states that they have no physical presence in because of how they handle shipping along with a dollar amount collected from those states.

Sales tax can be complicated if not the most complicated taxes.

As for international sellers, I can not see why you would need to collect sales tax for states if you are not in any of them. If you are shipping from the USA, research that states laws. Also, consider what reach they could even have not being in the USA.
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