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Sales Tax Withholdings

Anthony C
Level 1

Hi everyone,

Just trying to understand internet sales tax requirements.

Delaware business so I  don't normally worry about sales tax since Delaware does not have any.

The business will be based in Delaware but will hold no inventory and ship directly from suppliers across the country. From my understanding, since the inventory is being shipped from other states it will create a nexus for that state AND would require sales tax withheld based on the rules for that state. Whether it is sales tax for that state or for the state where the product is being shipped to, it would be state to state. 

Thanks for any help

 

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1 Comment 1
qbteachmt
Level 15

Delaware or not, isn't the concern, because you have many places that include inbound taxation. Holding inventory or not isn't a good general guideline either, because many places also charge tax on services.

I would start here:

https://www.avalara.com/us/en/learn/guides/frequently-asked-questions-for-getting-started-with-sales...

 

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