Online Sales Tax | The Complete Guide for Online Sellers

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Are you an online seller trying to figure out the complexities of sales tax? In this video, we'll talk about:
👉 Everything you need to know about nexus and what that means for your sales tax obligations
👉 How physical presence and economic thresholds determine nexus
👉 How marketplace facilitator take the burden off online sellers and the importance of knowing if your products are taxable or now
If you want to understand nexus and your sales tax responsibilities, then be sure to watch this video!
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🔥 For more information about sales tax and the steps you'll need to take to remain compliant, DOWNLOAD OUR FREE SALES TAX GUIDE, "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business":
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Our FREE Economic Nexus Thresholds by State is at the end of the 10 Steps guide listed above.
🔥 If you're interested in knowing EXACTLY what to do with your sales tax, enroll in our SALES TAX ROADMAP MADE SIMPLE COURSE:
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Опубликовано:

30 авг 2022

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Комментарии : 478

@veganmayo Год назад

I cannot believe this video does not have more views. Incredibly clear in comparison with any online written explanation. And you answered the follow up questions I would have had. Thank you!

@LedgerGurus Год назад

I'm so glad you liked it and that it was so helpful for you.

@heidipolo5124 11 месяцев назад

@@LedgerGurus You are very smart! Thank you so much for the information

@LedgerGurus 11 месяцев назад

@@heidipolo5124 You're very welcome

@pageholt446 8 месяцев назад

I totally agree.

@ryancharlton7067 5 месяцев назад

I have NEVER seen anything like this! You have explained this so clearly! I’m shocked! You made this so achievable to understand! 🎉🎉🎉🎉

@LedgerGurus 5 месяцев назад

Glad it was helpful! Thank you.

@yazmincolin7878 8 дней назад

Guuuurrrrrlllllll!!!!! I was panicking when I did not see sales tax for California!!! This makes so much more sense!!!! 😭😭😭

@LedgerGurus 6 дней назад

Glad to help!

@austinmcdonagh139 4 месяца назад

Thank you so much! You are the only person I’ve found that can explain this clearly. Extremely helpful.

@LedgerGurus 4 месяца назад

Glad it was helpful!

@TUCOtheratt 6 месяцев назад

This is the best video I have found on the subject. Thanks!

@LedgerGurus 6 месяцев назад

Glad it was helpful!

@mmtaurus1990 9 месяцев назад

You have nailed every question I had, and for that I am incredibly grateful. Liked and subbed.

@LedgerGurus 9 месяцев назад

Awesome, thank you!

@rrmatt4660 3 месяца назад

love this! You did a exceptional job of making a confusing topic clear. Thank you - subscribed!

@LedgerGurus 3 месяца назад

Glad to help! And thanks for subscribing.

@Mrslivdomoto Год назад

This was so helpful! You explained it well

@LedgerGurus Год назад

Glad it was helpful!

@keoki1748 Год назад

Thank you very kindly for covering this material in such a simple, easy to understand manner. This is VERY helpful information and solved a great deal of confusion for me personally.

@LedgerGurus Год назад

We're so glad! That's exactly why we spend so much making and publishing this content. :)

@budhadley3730 Год назад

This is the best video on RU-vid about this. Thank you.

@LedgerGurus Год назад

So glad we could help you so much!

@ethanshockley 2 месяца назад

Incredibly helpful. Thank you!

@LedgerGurus 2 месяца назад

You're very welcome!

@jennytherrien3570 6 месяцев назад

Very helpful! Best explanation on here. Many thanks!

@LedgerGurus 6 месяцев назад

You're very welcome!

@muzacmann 3 месяца назад

I am an ecommerce startup trying to cover all of the bases. You just covered this one with ease! I had NO idea!!! Thanks a TON!!!

@LedgerGurus 3 месяца назад

So glad to help. Good luck with your new business!

@David-vw5hf Год назад

Extremely informative and clear. Thanks

@LedgerGurus Год назад

So glad to help. You're welcome!

@terim7687 Год назад

Thank you, this info was very helpful!

@LedgerGurus Год назад

I'm so glad it helped you!

@ashtonannedunn 10 месяцев назад

Wow, this was extremely helpful! Thank you!

@LedgerGurus 10 месяцев назад

Glad it was helpful!

@timroberts3258 2 месяца назад

Very clear and helpful. Thank you!!

@LedgerGurus 2 месяца назад

Glad it was helpful!

@7Julez23 11 месяцев назад

This was incredibly informative! 😊answered many questions I had.

@LedgerGurus 11 месяцев назад

Glad it was helpful!

@TheGLpanda Год назад

Thank you for making this video!

@LedgerGurus Год назад

Glad it was helpful!

@luanneturnage8467 4 месяца назад

you are so comforting! thank you so much! For someone who is trying to do the right thing with taxes before I start it can seem so overwhelming that it almost freezes a person up! You made it so understandable that I feel relief and feel like I can move forward and just get going! It would be awesome if your company handled accounting and tax help for artists and others that sell online and in person at art fairs and flea markets

@LedgerGurus 4 месяца назад

Sorry! We don't do income tax, but we do offer ecommerce accounting. If you're interested in our services, click here: ledgergurus.com/ecommerce-accounting-services/?RU-vid&

@BeaBop-gq5we 4 месяца назад

You answered the question that has been on my mind! Thank you soo much!

@LedgerGurus 4 месяца назад

You are so welcome!

@Miguel-se6yn Месяц назад

Excellent explanation, couldn't be more clear, great job!

@LedgerGurus Месяц назад

Glad it was helpful!

@biancalankford Месяц назад

This video was incredibly helpful! I just started an e-commerce business recently and wasn’t sure about how to charge sales tax (or if I even needed to!) Thank you for answering all of my questions!

@LedgerGurus Месяц назад

Glad it was helpful!

@nickscreativelab 9 месяцев назад

Great informtion. Very helpful!

@LedgerGurus 9 месяцев назад

Glad it was helpful!

@Angie_playhouse 6 месяцев назад

Very clear! Thank you!

@LedgerGurus 6 месяцев назад

Glad it was helpful!

@StreaminFreedom Год назад

Wow, Incredibly valuable, and clear.

@LedgerGurus Год назад

So glad to help!

@Schiappino 20 дней назад

Top top video! You explained difficult topic very clearly and easily. Great great job

@LedgerGurus 19 дней назад

Much appreciated!

@Evie.Vincent 9 месяцев назад

Thank you so much. This is very helpful.

@LedgerGurus 9 месяцев назад

Glad it was helpful!

@nancyreynolds-CaminoExperience 4 месяца назад

EXCELLENT! Thank you so much for explaining this. Panic, averted.

@LedgerGurus 4 месяца назад

Glad it was helpful!

@RosanneKSart 6 месяцев назад

Thank you for this very helpful information.

@LedgerGurus 6 месяцев назад

Glad it was helpful!

@manueloancia7387 Месяц назад

Good job and great video. thank you for your support, you answered to my question, Be blessed

@LedgerGurus 29 дней назад

You are so welcome

@brookebescup Год назад

Omg the best explanation ever! You are the best

@LedgerGurus Год назад

Glad it helped!

@giovannipuccio2654 Год назад

love the effort in the replies! subscribed!

@giovannipuccio2654 Год назад

p.s. and the video

@LedgerGurus Год назад

@@giovannipuccio2654 Thank you for all your support!

@emadlouka3820 5 месяцев назад

AMAZING information and AMAZING way to present them …. Thank you so much 👍👍

@LedgerGurus 5 месяцев назад

Glad you liked it. Thank you.

@andriusbagdonavicius4686 4 месяца назад

Very well explained!

@LedgerGurus 3 месяца назад

Glad it was helpful!

@shielamaydelatorre158 3 месяца назад

thank you for very clear explanation.

@LedgerGurus 3 месяца назад

You are welcome!

@studiodejavoo 2 месяца назад

This video helped me so much and really put my mind at ease. Such a clear explanation, thank you.

@LedgerGurus 2 месяца назад

Yay! Glad to hear it.

@cbcrcr 3 месяца назад

Thank you very much for your excellent and complete information.

@LedgerGurus 3 месяца назад

You are welcome. Glad it was helpful!

@zainabali7495 5 месяцев назад

Wow this was so good!!! Thank you 🥰

@LedgerGurus 5 месяцев назад

Glad you liked it!!

@JulieRNeidlinger 7 месяцев назад

This is one of the best videos on this subject out there. And I've watched a lot 😩

@LedgerGurus 7 месяцев назад

Thank you so much. That means a lot!

@Mr.Replicant-ow7rb 11 месяцев назад

Thank you very much for this nice and simple explanation on a subject that had my head spinning as a website startup business

@LedgerGurus 11 месяцев назад

We're happy to help!

@ckye736 19 дней назад

Thank you so much for confirming in a concise and clear manner. My county senior investigator called me and said things which are wrong you just explained the points. I urge everyone to watch this even county does not know their own rules.

@LedgerGurus 19 дней назад

Thank you for this and we're so glad to help make things clearer for you.

@user-qg2co3rw2w 2 месяца назад

very detaied information. thanks

@LedgerGurus 2 месяца назад

Glad it was helpful!

@realmattblev 3 месяца назад

Thank you very much for this video.

@LedgerGurus 3 месяца назад

You are very welcome. I'm glad it was helpful.

@lorearco4013 Год назад

Watching your video from Mexico, tks!!! 😊

@LedgerGurus Год назад

Thanks for watching!

@Lapluieperceverence 8 месяцев назад

Thank you so much very helpful

@LedgerGurus 8 месяцев назад

Glad it helped

@pewee2496 6 месяцев назад

Wow I just started an Ecom store and this tax thought hit me, thanks for your information!

@LedgerGurus 6 месяцев назад

Glad to help!

@cid8943 8 месяцев назад

You are so good thank you for this

@LedgerGurus 8 месяцев назад

You're so welcome!

@level7performance 3 месяца назад

Excellent information.

@LedgerGurus 3 месяца назад

Glad it was helpful!

@user-zc6di6rg3x Год назад

Very helpful!

@LedgerGurus Год назад

Glad it was helpful!

@cesarmerc7770 Год назад

This is very good!

@LedgerGurus Год назад

Thank you! We're glad you liked it. :)

@brandyspain7125 2 месяца назад

Thank you.

@LedgerGurus 2 месяца назад

You're welcome!

@NKn0ws 4 месяца назад

Thank you!

@LedgerGurus 4 месяца назад

You're welcome!

@donnadubble-lucier1670 11 месяцев назад

This is good news. Thank you

@LedgerGurus 11 месяцев назад

Glad to help!

@user-sj5je3mw5g 3 месяца назад

Thank you!!!

@LedgerGurus 3 месяца назад

You're welcome!

@laurend3413 Год назад

Thank you so much!

@LedgerGurus Год назад

You're welcome!

@jillkthomas Месяц назад

thank you for this, I live in Oregon which does not charge sales tax but i want to ship products to other states. Well under the 200 threshold for sure. good to know i dont need to worry about this for a bit.

@LedgerGurus Месяц назад

Glad it was helpful!

@jasonross8233 Год назад

Thanks so much for posting this video. I've been asking these questions and this is the best explanation I've come across. I'm new to online business. I have one question. If I sell on my personal shopify store and Amazon, don't some states say I have to add up the transactions from both platforms to see if I have Nexus? Also, does print on demand companies make me have physical presence in that state? Thanks again for this video!

@LedgerGurus Год назад

Yes you do need to add up both channel’s sales for nexus purposes, but your exposure is only from your Shopify store. And no their physical presence doesn’t affect you :)

@Michigan_Wolverine 11 месяцев назад

Well done!

@LedgerGurus 11 месяцев назад

Thank you!

@kyoto5915 3 месяца назад

Great video and detailed explanation LedgerGurus! Your expertise is very helpful, especially with the details around marketplaces collecting and remitting sales taxes to the various states. Quick follow-up question on this. If we are already registered to collect sales taxes for a state and sell there directly as well as with a marketplace (eg, Meta/Facebook). Per your video, I'm assuming we can exclude any transactions done through the marketplace when we file and remit our sales taxes for sales done directly on our website? Just wanted to make sure we didn't leave out the marketplace transactions if they still need to be reported. Thanks much!!!

@LedgerGurus 3 месяца назад

That is correct.

@justincampbell9664 Год назад

An interesting video, thanks for making it! Does Texas have any unique laws?

@LedgerGurus Год назад

Yes! Economic nexus for Texas is $500,000 in the processing four quarters. It requires a franchise tax filed if you have a sales tax permit.

@patrice11968 Год назад

Hello glad I found you. So I started an ecom business in January and got my first sale in May. I live in Washington DC. I haven't sold much yet and none of my sales have been in DC but I got a letter from the Office of Tax and Revenue saying I'm delinquent in reporting my taxes for quarter 2 ?? what do I need to do?

@LedgerGurus Год назад

I would register for a sales and use tax license in D.C, use your first sale date as your effective date, and file $0 on your Q2 return, Q3 possibly as well since that was due last week. Let me know if you have more questions!

@luposbaseball Год назад

Great video. To be clear on "is my product taxable." I sell educational services. 1-1 with me or educational packages I produce. In my state, services sold do not require me to collect sales tax. The questions I have is, if I sell my course to someone out of my state, am I still considered exempt from collection or does the state of purchase determine tax collection or exemption?

@LedgerGurus Год назад

The first question is whether you have nexus in the other states. If the answer is yes, then you move on to consider taxability :)

@WGMojo 9 месяцев назад

Thanks!

@LedgerGurus 9 месяцев назад

You're very welcome. :)

@mofouad9665 Год назад

Hi, thank you for the informative video. I wanted to ask if Amazon sellers are still required to apply for a tax permit in whatever state they have physical nexus in even if Amazon collects & remits the sales tax. And do international sellers (located in Canada) need to register for sales tax with those states?

@LedgerGurus Год назад

ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-I1bLb5SCk4I.html this video should be able to answer your questions. But let me know if you still have questions after watching the video :) happy to explain further!

@wexoom Год назад

This was most in depth video on taxes I’ve watched! In regards to physical nexus, as a print on demand vendor, do printers location that the order get sent to for fulfillment, does this make it a physical nexus to me? Thank you!

@LedgerGurus Год назад

Does your company own the printers or are they paying to use them? If you own them then yes, that gives you physical nexus. If you are paying to use them then that does does not create physical nexus.

@alisonschermerhorn4971 Год назад

Thank you for the helpful info! I have inventory in NV, which is a destination-based state (sales tax on orders placed within NV are taxed based on where they are shipped to (the customer’s delivery address)). If I only have physical nexus and not economic nexus yet, would I only collect sales tax on E-commerce orders with a delivery address in NV? For example, no sales tax would be charged on orders shipping to CA.

@LedgerGurus Год назад

Yes, if you have a physical presence in a state, that means you have nexus there even if you haven't hit the economic nexus threshold yet. So yes, you would need to collect sales tax from NV customers.

@dorothypang1708 18 дней назад

Thank you so much! Love this. One clarification, if I am selling on a marketplace facilitator, I will still have to register in the states for #1 and #2, correct?

@LedgerGurus 18 дней назад

Yes, you still have to register wherever you have nexus.

@olhamartinez8420 10 месяцев назад

Thank you 😊

@LedgerGurus 10 месяцев назад

You're welcome 😊

@Fredy_Carpower360 10 месяцев назад

QUESTION: I sell a digital low-priced e-book online, is that a taxable transaction? I'm also planning to sell a digital course, is that also taxable?

@LedgerGurus 10 месяцев назад

It depends on the state. You'll have to research each state as you approach nexus to see if you're responsible to charge tax there.

@safetycitychic Год назад

Do you have a video to fill out the Reg 1 in Illinois

@LedgerGurus Год назад

We did a whole video dealing with Illinois sales tax here - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-eROXxrTZPps.html

@NewIndianera Год назад

Nice video

@LedgerGurus Год назад

Thank you

@samirafernandez5715 2 месяца назад

Thanks for the informative video! Is there a specific website you use to verify if your product is taxable?

@LedgerGurus 2 месяца назад

We have a whole section on it in our sales tax course (ledgergurus.thinkific.com/courses/sales-tax-roadmap-made-simple) and you can also look it up on Google.

@michaellong335 Год назад

Such a great video! I am starting a dropshipping store on shopify and I'm so confused. So do I only need to worry about sales tax once I reach the 200 sales/ $100k mark or do I need to collect tax in the state I have a physical address in immediately? Also, do I need to collect taxes in the state the dropshipping warehouse is in? This is all so confusing! Thanks for your advice!

@LedgerGurus Год назад

Good questions! And we have a video to answer them - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-suUqOj3bhvs.html.

@debrahk3634 11 месяцев назад

Thank you for this video. I have an MBA and can't understand the information I have read on my state's sales tax site.

@LedgerGurus 11 месяцев назад

Not a surprise. It's legal mumbo-jumbo.

@emdeevlogs7880 Год назад

You have the most straightforward content about this topic. Ty! I have a question about physical nexus. I don't have any employees. I'm the owner of an LLC. I don't have an office or storage. I receive very small volume of items (1 box) that is easily stored on a shelf in my home. Because I am the owner does that establish a physical nexus in that state? Do I have any type of physical nexus at all?

@LedgerGurus Год назад

Yes, you do have physical presence/nexus in your own state. For more information on this, check out our sales tax masterclass - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax

@julissalebron4934 5 месяцев назад

Hi, thank you so much for this video. Just to make sure I understand, my physical Nexus is where my inventory is or from where I am shipping from. Also, if I didn't reach an economic nexus in a year, the transitions or amount doesn't add to the next year? It start counting your transations and amount the next year ? Thank you in advance!

@LedgerGurus 5 месяцев назад

You have physical nexus wherever you have people and/or property. So yes, you have nexus where your inventory is. Nexus thresholds are calculated on a trailing 12-month basis, not necessarily a calendar year. Keep an eye on your sales to see when you start getting close, and then make sure you register after you've hit it in each state.

@user-dd7bt5qd3m Год назад

Hi! Thank you for the great explanation 🥰 Could you please advise how to know if my products are taxable? Thank you)

@LedgerGurus Год назад

You can look it up online for each state. There are 4 main categories for taxability exemptions: services, clothing, SaaS, and food & supplements. Rules are different by state.

@johntenuto-motivationalcon8810 Год назад

thank you so much

@LedgerGurus Год назад

You're very welcome. Glad to help!

@xuanyingli1428 5 месяцев назад

Thank you for the video, it's so helpful! I got a question, what would happen if I register the sales tax collection before hitting the threshold?

@LedgerGurus 5 месяцев назад

You'll have to start collecting and remitting.

@bwrt Год назад

Very good info thank you! I would appreciate clarification on my particular situation please. I am a sole proprietor in WA state with a home based online Hypnosis business I pay income tax on sales from my services. I am creating MP3's to sell online. Do I already have Nexus because of my Hypnosis business or can I sell my MP3's until I hit the 200/$100,000 threshold?

@LedgerGurus Год назад

You already have nexus in Washington because you are physically in Washington Andi believe digital products are taxable in Washington.

@kevdog20 Год назад

I have an important question. You said the sales taxes come into play after we reach $100,000 or 200 sales in that state so my question is is it per state? What I am asking is if I get 199 sales in the state of Florida and then 100 sales in Kentucky and 130 sales in New York and thats all I got for my online course that means overall I passed 200 sales but I didn't pass 200 sales in each state so does the sales taxes come into effect per state or overall the states combined sales?

@LedgerGurus Год назад

The thresholds are different for every state. You can see a complete and updated list at the end of our 10 Steps of Sales Tax guide - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/. The thresholds are PER STATE. So, even if you have 100 sales in Kentucky and 130 sales in New York, that doesn't affect whether you've passed the threshold in Florida. Now, just so you are aware, there is not a # of transactions threshold in Florida, like there is in a lot of states. You've passed the threshold once you've reached $100K in sales in the state of Florida. This is why I suggest you download that guide and check out the chart at the end. One more thing, while sales tax is only affected BY STATE, you do need to calculate the sales in EACH STATE from EACH of your CHANNELS to determine if you've passed the threshold. So, if you've sold $75K into Florida on Amazon, and $50K on Shopify, your combined sales are $125K into Florida, meaning you've passed the threshold. Amazon is responsible for collecting and remitting on Amazon, so you don't have to worry about the taxes on that $75K, but you DO need to collect and remit on the $25K you sold on Shopify AFTER you passed the threshold of $100K. Hopefully this helps.

@jacquelineporada2254 Год назад

Thank you for always making a very informative videos, i just started my Amazon biz and send my 1st shipment how do i determine my physical presence in other state? Since Amazon is moving my inventory?And when i generate inventory report from SC my inventory pass through different state and warehouses, and made my first sale Ship from Ohio, and after i determine where i have physical presence when is the time to register to a state? Thanks

@LedgerGurus Год назад

Here is a video that should be helpful! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-I1bLb5SCk4I.html let me know if you have more questions after watching it!

@lauraspencer8486 Год назад

Great information. Where do i find information to see if my recordings and ehandbook are taxable? Also, I didn't see the link for the guide you mentioned.

@LedgerGurus Год назад

The guide Kexin was talking about is our 10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business. You can find that here - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

@kanwaljeetsingh4783 18 дней назад

Thanks for this video. Gives good clarity. I have one question though. I use virtual address in Wyoming and i sell private label as amazon FBA seller. I know amazon is collecting sales tax on my sales but do i need to report NIL sales tax to Wyoming state ?

@LedgerGurus 18 дней назад

yes

@elizabethmccolloch9634 23 дня назад

Thank you for such a helpful video! I am just starting my business and will likely not hit those thresholds for economic nexus for a while. However, I have read a bit about notice and report laws and am quite confused! As a non-collecting seller, in some states, are we required to inform our customers that they have to pay use tax? How do we find which states these are?

@LedgerGurus 23 дня назад

Yes, you should. We recommend adding a note to your invoices that customers outside your own state may be required to remit use tax since you're not collecting sales tax yet. You will need to register and collect for your own state since you have nexus there.

@GraceinLondon 14 дней назад

Thank you for our kind explanation! Here's a quick question. If our company already registered in a state as of the beginning of last year but the sales volume in the last year didn't get the economic nexus threshold at the end of the year. Then can we deregister our business in that sate? If so, how to do it?

@LedgerGurus 13 дней назад

I definitely suggest you schedule a consultation with one of our sales tax experts for this one: calendly.com/ledgergurus-sales-tax/?

@domingovillasmil Год назад

Awesome explanation! Question, once i surpass economic nexus, do i have to pay taxes on that state forever or it resets annually?

@LedgerGurus Год назад

Economic nexus is determined on a rolling 12 months. Once you cross the threshold and register, you can reevaluate based on whether or not sales go down in that particular state.

@Yu_Thinking Месяц назад

This is super clear! just a follow up question - if one only sells via marketplace facilitator, one only needs to report and remit to home state (i.e. physical presence), right?

@LedgerGurus Месяц назад

No, you still need to know where you have economic nexus, and Amazon FBA may make it so you have physical nexus in other states, as well. You'd only file $0 returns in those states since the marketplace is remitting the tax, but you do have to register where you have physical and economic nexus.

@classysalonspa6172 Год назад

You are amazing!!! I am also a seller on amazon, and I am living in CA. I already had the seller permit, but when I want to buy wholesale from (sam club, Ikea,...) they asked me to show the tax exemption card to not pay the tax to them, could you please let me know how to apply for that card. Because if I don't have that card I have to pay almost 10% for the product I purchase from a wholesale store. thank you.

@LedgerGurus Год назад

Since you are already registered with CA, you should also received the exemption certificate from CA. I would contact CDTFA if you haven’t received it.

@crush_number_9 4 месяца назад

Great video! I do have one question. I just started my business selling through (only) marketplace facilitators a few months ago, but I jumped the gun and registered for a NC sales tax and use # right away. Does this mean I need to file quarterly, even if it's just to say $0 owed? Or will the state realize Etsy, TikTok Shop, etc have collected/remitted for me?

@LedgerGurus 3 месяца назад

You will need to file, but you'll state $0 as the amount you need to remit.

@MackPackreselling Год назад

Thank you for the video is was really helpful. I just have one important question that I hear people talking about. If ALL of my sales are on a marketplace and I have nexus in my home state and others i hear people say you still have to file with that state but put a zero on it. Please tell me if this is true.

@LedgerGurus Год назад

If you don’t have any nexus in other states you don’t need to register and file $0 returns. If you do have nexus in those states, and you are selling exclusively on Amazon, it’s a business decision that you have to make to decide if you want to register and file $0 returns. The only way you would have nexus is physical presence through FBA, and a good amount of states say FBA don’t create physical presence either.

@gotabeadsbazaar 6 месяцев назад

Really nice videos. Haven't had anyone explain it so nicely. I have a question...is TikTok also Marketplace? Will they collect in my behalf and send to state ?

@LedgerGurus 6 месяцев назад

Yes, according to this - seller-us.tiktok.com/university/article/agreement?knowledge_id=10013296&identity=1. _" If you sell to buyers based in the U.S., most jurisdictions require that TikTok collects applicable sales taxes on your sales due to marketplace facilitator legislation. For sales to buyers based in marketplace jurisdictions, TikTok will calculate, collect, and remit the sales tax on your behalf. Prices advertised on TikTok Shop are exclusive of applicable sales taxes, which will be calculated and charged at checkout."_

@BuckteethMechanic 5 месяцев назад

Thanks. So I’m in automotive repairs and been buying parts from local suppliers providing sales tax ID, to not pay sales tax as a business at the point of purchase, and turn around resell them to customers without collecting taxes. I’m selling the parts at purchase value: do I need to pay the state sales tax of these parts regardless of reaching the threshold or does the threshold apply to my circumstance?

@LedgerGurus 5 месяцев назад

If you're selling in your own state, then you do have to collect and remit sales tax from your customers or you need to pay it yourself.

@nandinibajaj9236 4 месяца назад

Hi, thanks for the amazing insights on US sales tax. I have few follow up questions: Does it mean that the seller (who is selling through its own website) is not required to collect and pay sales tax on any product it sells in any other state (if it has not passed the economic nexus threshold)? Will it be fair considering that if the buyer in that state procures the same good from a brick and mortar store will have to pay sales tax?

@LedgerGurus 3 месяца назад

It is true that until a seller passes the economic nexus threshold, they are not responsible for collecting and remitting sales tax in that state. If regards to the buyer, I don't know if fair comes into it. It's just how the laws are written at this time.

@ugotlexx216 5 месяцев назад

How do I set up a consultation with you. Love the video and the way you explain things

@LedgerGurus 5 месяцев назад

You can schedule that here: calendly.com/ledgergurus-sales-tax/?RU-vid&

@RevilynViola Год назад

Hello, thanks for this informative video, I have a client were there are three ecommerce platform namely, ebay, amazon and walmart. And his business was registered in Virginia. My question is when i file it by month do I add the three plaform? from GROSS SALES, EXEMPT SALES (AM I CORRECT THIS ARE THE TAXES COLLECTED OUTSIDE VIRGINIA?) AND DEDUCTIONS (THESE ARE THE TAX COLLECTED IN VIRGINIA?) TO COME U 0 TAX SALES. Thank for the response. I try to find a video of filing but there is only for California

@LedgerGurus Год назад

Hi! I would add up all the gross sale from the three platforms only for sales made to customers in VA, then take the same amount as deduction (because Amazon eBay and Walmart already collected and remitted them) to arrive at $0 taxable sales.

@user-xx7ii4vq9z 6 месяцев назад

Hey guys! Short question, If I am a online dropshipper In Indiana with a supplier In China and I have no physical store, warehouse, or employees In Indiana/America, that wouldn't count as physical nexus right? Or would It count just because I live here and run the online shop here? Thank you so much🙏

@LedgerGurus 6 месяцев назад

You have physical presence in Indiana because you live there and are running your store from there.

@MashmanMusic 9 месяцев назад

Great video. Thank you! Our physical nexus is in South Carolina. I think we’re going to go over $100K for 2023 in revenue across all 50 states based on 4th Qtr. projections. However, most of these sales are occurring outside South Carolina. Are we still required to pay Sales tax to the state of SC on all our online transactions even though the point of sale is almost always in another state? Or are we just required to charge sales tax to the small proportion of customers based in South Carolina? Continuing on this vein. Let's say the first state we hit an economic nexus of over 200 transactions is California. Would the state of South Carolina no longer receive the sales tax from the customers in the state and we would then register and remit the sales tax to California instead?

@LedgerGurus 9 месяцев назад

Glad to help. 1) You are only required to collect and remit sales tax for customers in South Carolina until you start passing the nexus thresholds in other states. You can find a complete list of those thresholds at the end of this download "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

@celsovizentimdemoraes3064 2 месяца назад

Hello!! tks for the video, i have a question, about economic nexus, i should count state by state? or together ? for exemplo, CA 150 invoices, plus 20 NY = 170?? tks

@LedgerGurus 2 месяца назад

Economic nexus is determined on a state by state basis.