Etsy U.S. Tax, Bookkeeping, QuickBooks, and Business License Topics Do you charge Sales Tax

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Original Post

Do you charge sales tax? I just had a thought that maybe I'm not getting alot of sales because I do charge tax. I have checked people who have favored my items and see they favor items like mine from other shops. I just checked the shops who sale hair accessories like mine and they do not charge tax. I'm thinking this might be one reason why I don't have alot of sales. Please let me know if you charge and you thoughts.
Thanks
Claudia

Posted at 12:24pm Jun 21, 2012 EDT

Responses

I charge sales tax because it's the law in my state of Missouri. I used to do craft fairs and people seemed okay with it. I guess they know it's just part of doing business. I only have to charge sales tax from people in Missouri, but it hasn't seemed to be a problem. Even if it was, there's really nothing I can do about. Sure don't want to get in trouble with the state over it.

Posted at 12:35pm Jun 21, 2012 EDT

Thanks-I'm with you

Posted at 12:56pm Jun 21, 2012 EDT

well, you only charge it for items shipped within your state, so that wouldnt stop people from the other 49 states from buying

Posted at 12:56pm Jun 21, 2012 EDT

Thank you - I was charging tax for everyone. I'll change it to only Ill,

Posted at 1:03pm Jun 21, 2012 EDT

GoTo from GoTo says

Some basic help here with how sales tax should work:

US: Sales Tax & Business Registration--links to official state websites
www.etsy.com/teams/7722/business-topics/discuss/9799713

Posted at 2:23pm Jun 21, 2012 EDT

yes for sales on the internet, you can only charge tax to shipments into a state where you are registered to collect sales taxes. the state of IL has no jurisdiction to tax me in VA, only VA can tax me. if I was to buy from you, I would then have to pay the state of VA a "use" tax fopr those items, if they are taxable items in VA. Use tax is the equivalent of sales tax, but paid directly to the state by the consumer. same as if you bought from me, I cant charge you tax, you would be responsible to pay your state the use tax for it

Posted at 2:52pm Jun 21, 2012 EDT

I only charge sales tax for purchases made in MA...not sure how it works in all other states.

Posted at 3:01pm Jun 21, 2012 EDT

** i sincerely doubt sale tax has anything to do with your lack of sales!!

Posted at 3:02pm Jun 21, 2012 EDT

For those who charge sales tax, how does that integrate into the shopping cart function? Do you just ask customers from your state to calculate their own tax and add it in to the total, or is their some function in the shopping cart software that does it automatically.

Also, question for any California sellers--do you need a special sales tax license or number to collect the tax? I'm from California also, and my state has recently begun to get very tough on online sales tax collection. Since CA is the most populated state, it would follow that a lot of my sales could come from here, so I need to know.

My site isn't up yet--it's still in draft--so I'm not sure how it all works. Any advice is greatly appreciated.

Posted at 7:29pm Aug 16, 2012 EDT