Sales Tax FAQs: Helping you understand and meet compliance with the law.
1. You didn’t charge me sales tax before; why are you doing it now?
New regulations affirm individual states can mandate that businesses without a physical presence having more than a certain level of sales in-state must collect and remit sales taxes on tangible property shipped to that state.
2. Why are you charging me tax if I don’t live or do business in your state?
The tax is charged based on the state laws of where you/the purchaser lives or where the product is shipped. The product retailer is charged with collecting the tax now, even if they aren’t in your state.
3. Why are other companies I order from not yet charging these taxes?
All companies who sell over the set limits in each state will have to comply with the law and roll out new policies to be in compliance.
4. My entity is tax-exempt or I am a reseller/distributor; do I still have to pay?
We will not charge sales tax as long as we are provided with a valid reseller’s certificate or tax-exempt certificate or letter from your state.
5. I order centrally for all locations within my company; why are the sales tax amounts on my invoices different?
Sales tax is almost always calculated based on the “ship to” address of the product, depending on the laws for each state.