Read these 4 Internet Sales Tax Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Shopping Cart tips and hundreds of other topics.
Internet sales tax advice: The internet is a very competitive landscape, so it would be wise to pass as little of your online business costs down to the customer. This will keep your prices competitive. However, it is generally agreed that shipping costs, internet sales tax for your state and (in some cases) a handling fee for items that require time to package. Of all these charges, the most innocuous would be the online purchase sales tax. Consumers are generally used to going into their favorite store and paying sales tax, so an internet sales tax is nothing new. However, very few people walk into a grocery store and pay extra for the bag clerk to package their groceries.
No. There is no "special tax" that is an internet sales tax. However, in most states, online purchases from within the same state as the business should be charged internet purchase sales tax that is equal to the state sales tax. As a merchant, you are liable for collecting your state's online sales tax.
When filing for your business, you should claim all the profit from all sales from your online business. Also, you should keep a record of the ecommerce sales tax you charge where applicable. The internet sales tax you collect must be paid to your state tax office just as a normal store would report its taxes collected. The only difference is that this money is collected via online sales tax.
As a merchant of an online business, you will have to pay both state sales tax and federal income tax on your sales. You can pass the sales tax down by charging internet sales tax where laws are applicable. You should research what your state online sales tax regulations are to be sure, but most states charge the same sales tax in stores as they do for when you sell online. You can *NOT* keep the sales tax or overcharge knowingly on sales tax, so be sure to follow your state's regulations.
|Jennifer Mathes, Ph.D.|