Question:

Do I have to collect tax when selling a tangible product online ?

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I'm currently building a website which is going to resell tangible products. Do I have to collect tax on those products from the people that buy them ? If yes, at what percent, from the state they live in or the one that I'm at ?

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  1. Only to those people whom live in your state. The others are supposed to be paying those taxes.


  2. You only need to collect sales tax on the items shipped within your state.  You would need to collect sales tax also if you have any other nexus connection in another state.  For example, if you have a PO Box in another state, you will need to collect taxes for that state too.

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