In setting up online sales, how does one tax sales appropriately?

I live in NC, but the site is through a larger POD company, so they are in many places.

Get your taxes done using TurboTax

Sorry---you have to check the state's sales tax laws for that.  We answer income tax questions in this forum.   We cannot advise you as to state sales tax laws.

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Get your taxes done using TurboTax

You need to consult (and probably employ) an accountant in your area for this matter. 

 

It is an additional cost, but it is the price of doing business.

 

rjs
Level 15
Level 15

Get your taxes done using TurboTax

This forum is for income tax questions, not sales tax. To get you started, here is some basic information about collecting sales tax for online sales. You will have to look elsewhere for the details.


Sales tax for online sales is very complicated. Sales tax is charged at the location where the product is delivered, not where the seller is located. Each state has different rules about whether you are required to collect sales tax, and different rates. In many states, the sales tax rate is not the same for the whole state. There are local sales taxes that vary depending on the specific location. A particular item might be taxable in some states and not in others. So you have to answer three questions for each sale.

 

  • Are you required to collect sales tax for the state that the product is shipped to?
  • Is the product taxable in the state that it is shipped to?
  • What is the sales tax rate at the location that the product is delivered to?


To collect and remit sales tax in a particular state, you are generally required to register with that state. Most states will have an exception to the requirement to collect sales tax for small businesses located in other states, based on the amount of the business's total sales, sales in the state, or similar criteria. However, you are required to collect sales tax on all sales that are delivered to any state in which your business has a physical presence, regardless of the rules for out-of-state sellers.


There are services or software available to determine the sales tax rate for a specific delivery address. QuickBooks, the small-business accounting software from Intuit, the company that makes TurboTax, includes sales tax calculation and tracking. Go to the following link for more information.


QuickBooks - Calculate sales tax


I'm not sure what you mean by a "POD company," or what services they provide. POD has a lot of different meanings. But, depending on where the POD company fits into the process, they might have some mechanism to help you with sales tax. Ask them.