Tax on shipping.

[flight74722]

Under the new tax laws.Is there a tax on shipping if you include the shipping price in with the item price. In other words free shipping. Thanks.

[slippinjimmy]

If you know a way that is more sensible, please share it.

A national value added tax with the proceeds distributed to the States based on a formulae. It works in most of the developed world, raises lots of revenue, business friendly much easier to implement and administer than the mish-mash that exists today.

Unfortunately it would require the co-operation of the States which isn't likely to happen any time soon (if ever).

[flight74722]

So what you are saying if I live in colorado only mark the colorado sales tax  area, where it charges 2.9 and leave the other states blank. So when someone out of state buys from me they pay the sales tax then when the tax is due I give colorado 2.9.

[sam9876]

"So when someone out of state buys from me they pay the sales tax then when the tax is due I give colorado 2.9."

No.

[lacemaker3]

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@flight74722 wrote:

So what you are saying if I live in colorado only mark the colorado sales tax  area, where it charges 2.9 and leave the other states blank. So when someone out of state buys from me they pay the sales tax then when the tax is due I give colorado 2.9.

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No, I definitely never said that.

When someone from out of state buys from you, they are responsible for paying the Use Tax on their purchase. You have nothing to do with paying sales tax or use tax for out of state purchases. You do not remit sales tax to Colorado for purchases that are not delivered to Colorado.

It is correct that you are only responsible for collecting sales tax for sales that are delivered to your own state.

In all honesty, because you are still having difficulty understanding all this, then you need to hire a CPA (Certified Public Accountant) who is licensed in Colorado and get some help to make sure you are doing this correctly. Don't accept a bookkeeper, you need someone who is licensed as a CPA in Colorado.

No offense, but you seem to be having difficulty understanding the explanations, so you probably need to hire a CPA to make sure that your business is complying with the law.

[lacemaker3]

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@sam9876 wrote:

"So when someone out of state buys from me they pay the sales tax then when the tax is due I give colorado 2.9."

No.

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@flight74722-- please, please, just ignore the one word answers.

Definitely not helpful, and not answering your questions.

[sam9876]

I am pretty sure that "No" is the correct response.  Or am I wrong?

[genv]

" Shipping " is a " Service "

A "service" is subject to sales tax.

"Free" shipping, w/ cost in price, is still taxed, as is whole purchase.

[lacemaker3]

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@sam9876 wrote:

I am pretty sure that "No" is the correct response.  Or am I wrong?

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I think it is painfully obvious that your one word answer was incomplete, and inadequate. So it cannot be considered "correct", whatever else it is.

[sam9876]

"So when someone out of state buys from me they pay the sales tax then when the tax is due I give colorado 2.9."

True or false?

[flight74722]

true

[flight74722]

Look guys i am not trying to get anyone mad I am trying to understand. A customer buys from me. The customer pays for the item, plus my state sales tax. Do I pay any sales tax to there state, if I don't live in that state. This will be the end of my questions, thanks.

[lacemaker3]

Now you are being deliberately obtuse. If you really wanted to help, then you would simply be helpful. One word answers are not helpful, they are inadequate,  incomplete, discourteous and disrespectful.

You appear to be capable of using multiple words in sentences. Your motivation for not doing so is suspect.

[flight74722]

One word answers? I came here for help. Though, you have been some what helpful. I will try to contact a CPA

[lacemaker3]

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@flight74722 wrote:

Look guys i am not trying to get anyone mad I am trying to understand. A customer buys from me. The customer pays for the item, plus my state sales tax. Do I pay any sales tax to there state, if I don't live in that state. This will be the end of my questions, thanks.

---

Your listings are only set up to collect sales tax for sales that are shipped to Colorado, so if a customer from another state buys an item, they will not be charged any sales tax and you will not receive any sales tax. You don't have to pay any sales tax to their state, because you won't receive anyu sales tax that is owed to any state except your own state of Colorado.

No: you don't "pay any sales tax to there state, if I don't live in that state. "

Please, ignore the posts from the poster who makes one word responses. They are not being helpful, or answering your questions. They appear to be deliberately trying to confuse you, so please, just ignore them.

[sam9876]

@lacemaker3

Please provide the OP with the correct information.