Collecting Sales Tax

[new12soap]

I live in NYS and am under the impression that you pay sales tax where the seller is physically located. If I'm at a craft fair I charge tax from the county I am in. If I'm shipping from my home I charge the 8% for Niagara County. I'm very fortunate to have a son in law who's a tax professional.

I believe that is incorrect.

If you are at a craft fair, yes the tax rate is for that location, where both the buyer and seller are physically located at the time of sale. If you are shipping from home to anywhere within NY state, the tax rate is based on the recipient's address.

http://www.tax.ny.gov/bus/st/sales_tax_rates.htm

 

[new12soap]

In Wisconsin, zip code doesn't work as taxes are collected by county and zip codes lines don't match county lines. *sigh*

Wisconsin's Department of Revenue states that the 9 digit zip code (or "zip + 4) will give you the correct tax district, if you have that. If not you should be able to enter the physical address to get the zip + 4. A pain, but could you make the + 4 a required field for your shopping cart?

 

[houseofwool]

Wisconsin's Department of Revenue states that the 9 digit zip code (or "zip + 4) will give you the correct tax district, if you have that. If not you should be able to enter the physical address to get the zip + 4. A pain, but could you make the + 4 a required field for your shopping cart?

I probably can, but it means entering all of the permutations into the table ahead of time.

 

[pamielynn]

This is why they'll never get this online tax thing figured out. New York is "destination" based sales tax and for me, Texas is "origin" based sales tax. Eh, gads. It's just a mess.

 

[Mellifera]

This is why they'll never get this online tax thing figured out. New York is "destination" based sales tax and for me, Texas is "origin" based sales tax. Eh, gads. It's just a mess.

I'm surprised and disappointed that a huge enterprise like PayPal doesn't figure the tax automatically for sellers. Yes, NY is a "destination" tax state, and counties and even cities can have different rates. NYC has a number of "special" rates depending on WHAT you're selling (luckily, that one doesn't effect me).

 

[pamielynn]

I'm surprised and disappointed that a huge enterprise like PayPal doesn't figure the tax automatically for sellers. Yes, NY is a "destination" tax state, and counties and even cities can have different rates. NYC has a number of "special" rates depending on WHAT you're selling (luckily, that one doesn't effect me).

If the IRS wants it's money, they should make it a bit easier to figure out.
And yes, Paypal should be able to code that info into it's system.