10-04-2019 04:02 PM
From what I can see offering free shipping is not cost effective for the buyer anymore!
it is better to lower the price of item and charge shipping so they do not have to pay as much tax, as shipping is not taxed!
10-05-2019 07:56 AM
@thehonorabletrader wrote:There is no more sales tax evasion allowed.
Most states required buyers to use the honor system and pay sales tax for online sales.
This is only true if you use a marketplace facilitator like eBay.
If you have your own website, most states give a generous allowance before the requirement to collect sales tax kicks in.
10-05-2019 07:58 AM
@luckythewinner wrote:
@thehonorabletrader wrote:There is no more sales tax evasion allowed.
Most states required buyers to use the honor system and pay sales tax for online sales.
This is only true if you use a marketplace facilitator like eBay.
If you have your own website, most states give a generous allowance before the requirement to collect sales tax kicks in.
My comment was about the buyer, not the seller.
You are correct in that many states don't require sellers to collect sales tax unless they hit a certain threshold. But my home state has always required buyers to (on their own) report their online out of state purchases so sales tax can be charged. Just because they don't require the seller to collect it doesn't mean they don't require the buyer to account for and pay it. This is why Turbo Tax, at least in my state, asks me each year if I have purchased anything online that was shipped to my state that I was not charged sales tax for.