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Etsy U.S. Tax, Bookkeeping, and Business License Topics How do I find out if my products are taxable

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Original Post

Cupquake31 says

Hi....I'm trying to start my own Etsy shop but I don't even know if I'm suppose to collect sales tax on my products. I plan to sell homemade salt and sugar scrubs for the body and facial scrubs but like I said do I collect sales tax on these items. I live in NJ...thanks in advance everyone.

Posted at 10:58 pm Jul 11, 2012 EDT

Responses

GoTo from GoTo says

Most states tax general goods--exemptions are usually for food, medical items, sometimes clothing... for details of what your state considers exempt, it's best to get the info straight from the state.

The links to your state's official website here should help find answers to some specific common questions:

US: Sales Tax & Business Registration--Links to Official Government Websites
www.etsy.com/teams/7722/business-topics/discuss/9799713

Posted at 3:11 am Jul 12, 2012 EDT

I know in Massachusetts (since that is where my business address is), i only have to collect Sales Tax for people that i am shipping to in Massachusetts.

Posted at 7:44 am Jul 12, 2012 EDT

artisanwoodcrafting says
Edited on Jul 12, 2012

if i remember correctly, those are taxable items in jersey. you do have to register with the state dept. of taxation to collect it, and would only collect it for shipments within NJ, and of course any in person pickups or deliveries

Posted at 1:54 pm Jul 12, 2012 EDT

You would only need to collect sales tax from customers who purchase products from you that reside in your state. If you haven't already, you need to check into getting yourself an EIN Number from the state to collect sales tax (this is different from your federal EIN Number).

Posted at 4:15 pm Jul 16, 2012 EDT

retrosugarandspice from BlueRoseVintage says

You would only need to collect sales tax from customers who purchase products from you that reside in your state.


actually, where they live doesnt matter, its where the items are being shipped to. if I bought from OP and had them send to my relatives in NJ, sales tax NJ sales tax should be charged



Posted at 4:50 pm Jul 16, 2012 EDT

and in most states, its just a state tax ID that one gets for collecting sales taxes, not necessarily an EIN. some states may use the same # for both, but a SP with no employees, shouldnt need an EIN. they definitely dont have to get an EIN from the IRS

Posted at 4:53 pm Jul 16, 2012 EDT

Yes, in Mass i had to use my Federal EIN to get my Sales Tax ID......they are not one in the same---which i did not realize at first =)

Posted at 9:34 am Jul 19, 2012 EDT

GoTo from GoTo says

Yeah--that gets a lot of people.

Posted at 3:33 am Jul 20, 2012 EDT

You do need to collect both state and federal tax for each item sold. If you sell items to customers who reside in your state, then you would need to pay state sales tax. Depending on where you live you may also have to pay local sales tax. My suggestion is to stop in to your local SBA office and prepare a list of questions for them regarding paying taxes for your business.

Posted at 6:37 pm Jul 20, 2012 EDT

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