Should You Charge Sales Tax for Ecommerce Sales?

ecommerce sales tax rules 2020
ecommerce sales tax

Ecommerce Sales Tax Guide: Should You Charge Sales Tax?

In the United States, sales tax is governed at the state level. There is no “national” sales tax law in the U.S.

Thus, many online sellers find themselves dealing with different sales tax laws and rules across multiple states.

As an eCommerce business, if you are responsible for sales tax in a state, it is your responsibility to charge your buyers the correct amount of sale tax. It’s also your duty to remit the taxes collected back to the state.

The basic rule for online sellers when collecting sales tax is:

  • Your business has sales tax nexus in the same state as your customer.
  • You’ll always have sales tax nexus in your home state. (*Certain business activities create sales tax nexus in other states, too.)

To explore these concepts a bit more in-depth, book a call with an eCommerce accountant now.

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