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Do I Need to Collect Sales Tax in Other States? - SC Residents

In summary, Diane states that if the purchaser is from out of state and has the order shipped to their residence, they will not have to pay taxes because the order was shipped there. However, if the purchaser is from in state and has the order shipped to their residence, they will have to pay taxes based on their location.
Kathylynn
55
I live in South Carolina. Do I have to collect sale tax for sales made in other states? Or is it like Internet sales where you only need to collect for sales made in your own state?
 
You need to charge sales taxes based on the location of the show. All the guests will pay sales taxes for the host location no matter where they are from.

If it is an individual sales, then that person will pay taxes at the rate of his/her location.
 
  • Thread starter
  • #3
Thanks! :)
 
Sales TaxHowever, if you have a show in one state, someone from another state orders and has it directly shipped to her own house and not the hosts', she would pay the tax rate for her own state (that is, they pay the tax for where the order is shipped). Hope that helps!
Diane
 
I struggled with this oneI called home office and talked to many consultants. I've been told and follow this method. Taxes are based uppon shipping location unless the purchaser is an Oregon resident, in which case they must show a valid Oregon Drivers licence so I can collect their, name, address, drivers licence number, and expiartion date to fill out the Tax Exempt Oregon Resident form to Send to HO, which would allow them to not have to pay taxes. This would also be true for fund raisers, Oregon Residents must show a valid drivers licence for tax exemption purposes just like if they were purchasing from any store in any other state than Oregon. If the purchaser is having their order shipped somewhere else with direct shipping they pay taxes for the location of where they ship it to. If I'm wrong someone please correct me, and send me a transcrip from HO where these rules are. Hope that helps. That's my understanding anyway.
Jenny
 
same infoI got the same information. It's based on the shipping address (which is usually the host's address). I ran into to this with a family member who lives in IN and my show is in TX. Taxes are lower in IN, so I wanted to make sure she got the right price. The correct answer was to use the special shipping option in PP and charge her the tax for her location because it's a direct ship to her in IN.
 

Related to Do I Need to Collect Sales Tax in Other States? - SC Residents

1. Do I need to collect sales tax in other states if I am a resident of South Carolina?

As a general rule, you are only required to collect sales tax in states where you have a physical presence, such as a brick-and-mortar store or warehouse. However, some states have "economic nexus" laws that require businesses to collect sales tax if they meet a certain threshold of sales or transactions in that state. It is important to research the specific laws of each state you do business in to determine if you are required to collect sales tax.

2. What is the threshold for economic nexus in other states?

The threshold for economic nexus varies by state. Some states have a dollar amount threshold, meaning you must collect sales tax if you make a certain amount of sales in that state. Other states have a transaction threshold, meaning you must collect sales tax if you have a certain number of sales transactions in that state. It is important to check the laws of each state to determine the specific threshold.

3. Are there any exceptions to collecting sales tax in other states?

There are some exceptions to collecting sales tax in other states. For example, if you sell goods or services that are exempt from sales tax in your own state, you may also be exempt from collecting sales tax in other states. Additionally, some states have reciprocal agreements where they do not require out-of-state businesses to collect sales tax. It is important to research the specific laws and exemptions of each state you do business in.

4. How do I register to collect sales tax in other states?

If you determine that you are required to collect sales tax in other states, you will need to register for a sales tax permit in each state. This can usually be done online through the state's Department of Revenue website. You will need to provide information about your business and its activities in that state. Some states may also require a fee to register for a sales tax permit.

5. What are the consequences of not collecting sales tax in other states?

If you are required to collect sales tax in other states but fail to do so, you may face penalties and fines from those states' taxing authorities. Additionally, if you are audited and found to have not collected sales tax in other states, you may be responsible for paying back taxes, interest, and penalties. It is important to stay compliant with sales tax laws in all states where you do business to avoid these consequences.

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