Question:

Do I charge the sales tax of my city where the business is located or where my customer is located?

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For example: My business is in Mesa, AZ and most of my customers are in different cities in Arizona - Phoenix, Chandler, Tempe, etc. Whose city tax do I charge?

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14 ANSWERS


  1. where the business is located...when you travel somewhere else you pay their tax.  Why would it matter if it was virtual travel to purchase?


  2. You charge the sales tax for where your business is located

  3. you charge sales tax where your business is based.

  4. Business location (at least that's how it works in PA).  Not sure about other states...

  5. A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of goods or services that are purchased. Sales taxes in the United States are assessed by every state except Alaska, Delaware, Montana, New Hampshire and Oregon. Hawaii has a similar tax although it is charged to businesses instead of consumers. In some cases, sales taxes are also assessed at the county or municipal level. While there is no national sales tax in the United States, the Fair Tax Act, which would replace most federal taxes with a sales tax and monthly rebate, has attracted the highest number of cosponsors among tax reform proposals in the United States Congress, gathering much stronger support than popular flat tax legislation.

    Sales tax is usually the responsibility of the merchant to collect and remand to the state, and stated separately (or implicitly added at the time of sale) to consumers. Usually only consumers are charged the tax; resellers are exempt if they do not make use of the goods. In some jurisdictions, a reseller's certificate is required to make use of this privilege. This is in contrast to a Value Added Tax (VAT), where resellers are also taxed (resellers may then claim the VAT paid on their purchases from the applicable authority). States which have exemptions for specific types of organizations (such as schools), may also require a certificate. A sales tax audit is the examination of a company’s financial documents by the state’s tax agency to verify if they have collected the correct amount of sales tax from their customers.

  6. As I understand internet taxes, amazon may have an facility in your state then sales tax applies to the sale. If they don't, then sales tax does not.

    Do yourself a favor and check with the local chamber of commerce.

  7. Where the business is located.

  8. you should tax where ever they are. Like here in Oregon, we dont' have a sales tax. And I wouldn't purchase anything that made me pay it.

  9. It depends a lot especially with professional services. Some times in professional services the taxes are paid where the service is offered. But in goods you pay the taxes of the city where you are located, because if another city has a higher tax than yours and you charge that city's tax and pay your city's tax which is lower don't you see a problem of tax evasion there, pls be careful when it come to taxes. If your not sure as the IRA.

  10. Generally, you collect the sales tax for the city/county where the business is located.  This will always be the case where the customer takes possession of the merchandise at the time of sale.  

    AZ law might be different, but in California, when the merchandise is delivered, then title is presumed to transfer where the delivery is made, and the tax is collected based on the delivery location.  Special rules apply to cars and other vehicles.

  11. where the business is

  12. Sales tax is generally charged by the retailer to its customers and paid to the city in which the retailer is doing business. If still in doubt, check with the Mesa AZ tax office:

    http://www.cityofmesa.org/salestax/defau...

  13. YOUR city tax

  14. your city

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