s0me0nesmind1
Lifer
- Nov 8, 2012
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Wow that sounds like it would be a pain in the ass. It should just be that you need to collect for your own state/province. Does not matter who buys, you just charge the tax. Not sure how status cards would work though.
Correct - which is what it should (and was) for a very long time. Quill v. North Dakota used to be the de-facto ruling that regulated that one must have some kind of phyiscal presence in a state in order for them to be liable to collect it on their behalf. Wayfair just totally nixed that. https://en.wikipedia.org/wiki/Quill_Corp._v._North_Dakota
The complexities of some 15,000+ jurisdictions in the US that impose a sales tax of some sort, is exactly why I'm employed We sell + Implement a software package specifically to calculate sales tax on sales (and purchases) to ensure compliance and easy filing of returns.
I think the complexities is this: Sales tax is based on the jurisdiction in which the item is consumed (or used, etc...) - this means if you're shipping a product from Texas to Louisiana - the product is being consumed in Louisiana, hence Louisiana sales tax is what takes precedence. On top of that, local jurisdictions in Louisiana may also have sales tax on top of the state sales tax (Parish's, Counties, Cities, etc..).
You can't just ship your product all over the US and charge Texas sales tax - because the product isn't being sold to someone in Texas.