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What You Need to Know about Sales Tax and Drop Shipping

What You Need to Know about Sales Tax and Drop Shipping

May 22, 2015
Drop shipping is a great way for e-commerce businesses that have limited or untested inventory to expand their customer offerings. By retailing products that are carried and housed by a third party distributor, such as a manufacturer, wholesaler, or fulfillment house, retailers can use drop shipping as away to grow their customer base, bring in more income and test out new inventory. However, drop shipping can have an adverse affect on sales and use taxes and thus, negatively impact the return on investment. How Drop Shipping Complicates Sales and Use Tax Because a third party is now involved, sales and… Read More
5 Business Activities that Create a Sales Tax Nexus

5 Surprising Business Activities that Create a Sales Tax Nexus

February 12, 2015
In most cases, a business needs to collect sales tax in the states in which they are located. This concept, called nexus, means that if the business has a physical presence in a state, that state can compel the business to collect sales tax from its customers. Nexus is pretty cut-and-dry when you’re thinking about the place where you work, or your business headquarters. If you’re a brick-and-mortar store with a single location, this is pretty straightforward. Everyone who comes into your store should pay your local sales tax rate on purchases (not accounting for topics like exempt sales and… Read More

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