If a walk-in customer pays, but wants the product delivered internationally do i still charge sales tax?

Question

For example, if a person is buying a tractor and they come into my store to pay for the tractor. They want the tractor to be delivered to thier farm in Barbados, in the caribbean.

Do i charge them local sales tax? In the case of me paying for similar goods (in person) in barbadoes for delivery to the USA, would i pay sales tax?

Answer 1

Absolutely.  Unless you specifically purchase from a duty-or-tax-free store....all local taxes should be paid at time of purchase.  It doesn't matter where the item is GOING, the fact is that they bought it from you.  If they question this, have them purchase it in the country they are sending it to.

Answer 2

Generally state sales tax is based on where the buyer takes delivery and whether your company has a presence there.

For export you have to be extra cautious about payment method (what will you do if payment is no good?).  If they pay you extra and want you to wire some of the money to anyone, suspect a scam.

You also have to be aware of policies of the manufacturer as far as distribution and warranty and whatever else is required for export to that country (export packaging, customs, etc.).  For example the manufacturer I work for has agents that cover certain countries.  And if someone goes around that, they may have a tough time getting service.

Answer 3

Yes, because they bought it in the USA.. If they bought it in Barbedos then they would pay Barbedos taxes.