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How do I find out what sales tax rate to charge my customers?
I have a warehouse in Northern California. If I ship to Los Angeles, what sales tax do I charge the customer? My city, or LA?
This is an online store so customers don't come into my place at all
7 Answers
- Anonymous1 decade agoFavorite Answer
You charge the amount they pay in their state, provided you run an ecommerce. If you own a store in La and he buys the items directly out of the store you have to charge him the state tax where your business is located.
- 5 years ago
I am just an Internet buyer, in NJ. But I 've been charged NY sales tax on online purchases made from NYC companies. Sellers in some other states don't charge me sales tax. To start with, learn the sales tax laws of the state that is the 'tax home' of your business. No small business I know of is set up to collect and transmit sales tax to all 50 states. Generally they charge sales tax only to residents of the state where the business is located. BUT you need to find out what YOUR state's law requires.
- travelguruetteLv 61 decade ago
It is always the sales tax of the destination. Remember that CA also taxes shipping. You can get the sales tax rates at the Board of Equalization website.
Source(s): http://www.boe.ca.gov/cgi-bin/rates.cgi - efflandtLv 71 decade ago
You usually have to charge and pay sales tax based on where someone takes delivery within your state (shipping address). Outside of your state, it depends whether you have a business presence in that state (in which case you would collect/pay that state's sales tax), or if not, if your state requires you do collect/pay tax for out of state sales.
Start with http://www.taxes.ca.gov/Sales_and_Use_Tax/
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- ?Lv 51 decade ago
Since when is there more than one sales tax rate in one state? It should be the same for both of you.
- ReenaLv 71 decade ago
http://www.streamlinedsalestax.org/
I think.... that if you collect the sales tax at the time of sale then you use your sales tax bracket because you are paying to your jurisdiction.
The above link is pretty interesting and should help you a lot.