Sales Tax Question

Discussion in 'Accounting and Legal Advice' started by stacy, Nov 8, 2007.

  1. stacy

    stacy New Member

    I searched for this and couldn't find it anywhere, so I'll start a new post. Can someone explain when I need to collect sales tax from customers? My mom is making some doggie clothes and beds that I will sell for her on ebay and eventually my own website. Do I have to collect sales tax for these items? Do I collect it from everyone or only people in my state? I don't have a tax ID number yet, do I have to get one?

    I'm so confused!
  2. pcincome

    pcincome New Member

    I can't say exactly for sure because you're making the items yourself but my understanding is that you would only charge sales tax for items sold and shipped within your state. You should be able to talk to a local tax accountant (not cpa) and get the right advice on this one.

    If you DO collect sales tax then yes, you need a tax ID number.

    Hakuna Matata
    Karen Umstattd
  3. bigred24

    bigred24 New Member

    if you collect tax then yes you need to get an sales tax ID. get in touch with your state tax comptroller office to check on if you sell on ebay or online to people out of state. every state have different laws.
  4. dmitch31

    dmitch31 New Member

    Apply for a sales tax ID number. When they issue you your number, they will also send you a boatload of information detailing all of the reporting and collection requirements. When you get that information from them, your confusion will be over. Most likely, you'll only need to collect sales tax from buyers in your state.

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