Online Sales Tax | The Complete Guide for Online Sellers

Are you an online seller trying to figure out the complexities of sales tax? In this video, we'll talk about:
👉 Everything you need to know about nexus and what that means for your sales tax obligations
👉 How physical presence and economic thresholds determine nexus
👉 How marketplace facilitator take the burden off online sellers and the importance of knowing if your products are taxable or now
If you want to understand nexus and your sales tax responsibilities, then be sure to watch this video!
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🔥 For more information about sales tax and the steps you'll need to take to remain compliant, DOWNLOAD OUR FREE SALES TAX GUIDE, "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business":
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Our FREE Economic Nexus Thresholds by State is at the end of the 10 Steps guide listed above.
🔥 If you're interested in knowing EXACTLY what to do with your sales tax, enroll in our SALES TAX ROADMAP MADE SIMPLE COURSE:
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• Online Sales Tax | The...
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[@veganmayo]

I cannot believe this video does not have more views. Incredibly clear in comparison with any online written explanation. And you answered the follow up questions I would have had. Thank you!

[@LedgerGurus]

I'm so glad you liked it and that it was so helpful for you.

[@heidipolo5124]

@@LedgerGurus You are very smart! Thank you so much for the information

[@LedgerGurus]

@@heidipolo5124 You're very welcome

[@pageholt446]

I totally agree.

[@ryancharlton7067]

I have NEVER seen anything like this! You have explained this so clearly! I’m shocked! You made this so achievable to understand! 🎉🎉🎉🎉

[@LedgerGurus]

Glad it was helpful! Thank you.

[@iamoutofideas13]

I'm subscribing based on the value you provided in this video alone. Fantastic job explaining this topic!

[@dogtiredtravels5286]

Thank you for this video. Watching this one video gets a subscribe from me. I published my first ebook on Google play and nobody there (on their chat) was able to tell me about state sales tax and what I'd have to do. Thankfully, you have made it very clear that I won't have to worry about it since I will be selling my digital products on Google Play only which is a market facilitator.

[@LedgerGurus]

We're glad we could help!

[@luanneturnage8467]

you are so comforting! thank you so much! For someone who is trying to do the right thing with taxes before I start it can seem so overwhelming that it almost freezes a person up! You made it so understandable that I feel relief and feel like I can move forward and just get going! It would be awesome if your company handled accounting and tax help for artists and others that sell online and in person at art fairs and flea markets

[@LedgerGurus]

Sorry! We don't do income tax, but we do offer ecommerce accounting. If you're interested in our services, click here: ledgergurus.com/ecommerce-accounting-services/?KZbin&

[@austinmcdonagh139]

Thank you so much! You are the only person I’ve found that can explain this clearly. Extremely helpful.

[@LedgerGurus]

Glad it was helpful!

[@nimzzvlogs4987]

​@@LedgerGurus Hello I want help I want run online print on demand bussniness I live in India but I want run bussniness in usa though printfy and Shopify so I need collect sales tax and any legal issues please reply me I want really help

[@yazmincolin7878]

Guuuurrrrrlllllll!!!!! I was panicking when I did not see sales tax for California!!! This makes so much more sense!!!! 😭😭😭

[@LedgerGurus]

Glad to help!

[@raquelnethercote5582]

Thank you so much for this information! You covered everything I was looking for!

[@LedgerGurus]

You are so welcome!

[@muzacmann]

I am an ecommerce startup trying to cover all of the bases. You just covered this one with ease! I had NO idea!!! Thanks a TON!!!

[@LedgerGurus]

So glad to help. Good luck with your new business!

[@valenciabaker7100]

This was VERY HELPFUL!!! Thank you!😄

[@LedgerGurus]

You're so welcome!

[@awellspringofworksheets8708]

Thank you! Answered all my questions so clearly. 😊

[@LedgerGurus]

You are so welcome!

[@ckye736]

Thank you so much for confirming in a concise and clear manner. My county senior investigator called me and said things which are wrong you just explained the points. I urge everyone to watch this even county does not know their own rules.

[@LedgerGurus]

Thank you for this and we're so glad to help make things clearer for you.

[@mommykate3266]

Thank you for this info just started an online business with a marketplace facilitator and I don’t have any ideas on taxes so I’m having 2nd thoughts but this video inspires me to push through on my business, hoping I can get sales soon.

[@LedgerGurus]

Good luck!

[@TUCOtheratt]

This is the best video I have found on the subject. Thanks!

[@LedgerGurus]

Glad it was helpful!

[@biancalankford]

This video was incredibly helpful! I just started an e-commerce business recently and wasn’t sure about how to charge sales tax (or if I even needed to!) Thank you for answering all of my questions!

[@LedgerGurus]

Glad it was helpful!

[@arg281]

Thank you so much for explaining this topic so clearly. It is difficult to find that kind of information gave it in that way for free.

[@LedgerGurus]

You're welcome!

[@withinthe3y3s]

I am so happy I found this! It made it so much easier to understand!

[@LedgerGurus]

I'm so glad to help. Good luck!

[@Miguel-se6yn]

Excellent explanation, couldn't be more clear, great job!

[@LedgerGurus]

Glad it was helpful!

[@manueloancia7387]

Good job and great video. thank you for your support, you answered to my question, Be blessed

[@LedgerGurus]

You are so welcome

[@keoki1748]

Thank you very kindly for covering this material in such a simple, easy to understand manner. This is VERY helpful information and solved a great deal of confusion for me personally.

[@LedgerGurus]

We're so glad! That's exactly why we spend so much making and publishing this content. :)

[@rrmatt4660]

love this! You did a exceptional job of making a confusing topic clear. Thank you - subscribed!

[@LedgerGurus]

Glad to help! And thanks for subscribing.

[@studiodejavoo]

This video helped me so much and really put my mind at ease. Such a clear explanation, thank you.

[@LedgerGurus]

Yay! Glad to hear it.

[@jillkthomas]

thank you for this, I live in Oregon which does not charge sales tax but i want to ship products to other states. Well under the 200 threshold for sure. good to know i dont need to worry about this for a bit.

[@LedgerGurus]

Glad it was helpful!

[@Yu_Thinking]

This is super clear! just a follow up question - if one only sells via marketplace facilitator, one only needs to report and remit to home state (i.e. physical presence), right?

[@LedgerGurus]

No, you still need to know where you have economic nexus, and Amazon FBA may make it so you have physical nexus in other states, as well. You'd only file $0 returns in those states since the marketplace is remitting the tax, but you do have to register where you have physical and economic nexus.

[@JulieRNeidlinger]

This is one of the best videos on this subject out there. And I've watched a lot 😩

[@LedgerGurus]

Thank you so much. That means a lot!

[@TobiasMuldoon]

this is great stuff thank you!

[@LedgerGurus]

You're very welcome!

[@mmtaurus1990]

You have nailed every question I had, and for that I am incredibly grateful. Liked and subbed.

[@LedgerGurus]

Awesome, thank you!

[@Schiappino]

Top top video! You explained difficult topic very clearly and easily. Great great job

[@LedgerGurus]

Much appreciated!

[@budhadley3730]

This is the best video on KZbin about this. Thank you.

[@LedgerGurus]

So glad we could help you so much!

[@ethanshockley]

Incredibly helpful. Thank you!

[@LedgerGurus]

You're very welcome!

[@pewee2496]

Wow I just started an Ecom store and this tax thought hit me, thanks for your information!

[@LedgerGurus]

Glad to help!

[@just_aristides]

so crisp. 5 stars!

[@LedgerGurus]

Thank you.

[@BeaBop-gq5we]

You answered the question that has been on my mind! Thank you soo much!

[@LedgerGurus]

You are so welcome!

[@Mrslivdomoto]

This was so helpful! You explained it well

[@LedgerGurus]

Glad it was helpful!

[@timroberts3258]

Very clear and helpful. Thank you!!

[@LedgerGurus]

Glad it was helpful!

[@nancyreynolds-CaminoExperience]

EXCELLENT! Thank you so much for explaining this. Panic, averted.

[@LedgerGurus]

Glad it was helpful!

[@Mr.Replicant-ow7rb]

Thank you very much for this nice and simple explanation on a subject that had my head spinning as a website startup business

[@LedgerGurus]

We're happy to help!

[@choolwee]

thank you , God bless you!

[@LedgerGurus]

Thank you.

[@emadlouka3820]

AMAZING information and AMAZING way to present them …. Thank you so much 👍👍

[@LedgerGurus]

Glad you liked it. Thank you.

[@jennyt.fsbstudio]

Very helpful! Best explanation on here. Many thanks!

[@LedgerGurus]

You're very welcome!

[@TheGLpanda]

Thank you for making this video!

[@LedgerGurus]

Glad it was helpful!

[@kyoto5915]

Great video and detailed explanation LedgerGurus! Your expertise is very helpful, especially with the details around marketplaces collecting and remitting sales taxes to the various states. Quick follow-up question on this. If we are already registered to collect sales taxes for a state and sell there directly as well as with a marketplace (eg, Meta/Facebook). Per your video, I'm assuming we can exclude any transactions done through the marketplace when we file and remit our sales taxes for sales done directly on our website? Just wanted to make sure we didn't leave out the marketplace transactions if they still need to be reported. Thanks much!!!

[@LedgerGurus]

That is correct.

[@terim7687]

Thank you, this info was very helpful!

[@LedgerGurus]

I'm so glad it helped you!

[@danielalvarez-arevalo688]

Well that helped some, still have questions though: -If I live at home and sell art prints (physical product) from home on my online website to buyers that live in my state and other states, do I have a nexus? For example purposes, let’s say I live in Florida and someone living in New York buys an art print from my personal online website, which I then have to ship to them: -How would sales tax work here? -Is the sales tax percentage I collect from them the amount required by Florida (where I live, I ship from) or the sales tax percentage required from New York (where they live, I ship to)? -Am I remitting the sales tax amount collected to my own state (Florida, where I live and shipped from) or their state (New York, where they live and I shipped to)? -Does use tax play a role here or not? How?

[@LedgerGurus]

1) You have nexus in Florida because you have a physical presence there. Physical nexus is created by people and property. Unless you have one of those or you've passed the economic threshold in other states, you don't have nexus there. 2) Until you pass the economic threshold in NY ($500K in gross sales in a calendar year), you do not have nexus there, so you don't charge that customer sales tax. 3) Sales tax is charged and remitted according to where the customers lives, not where you live. So, if the customer is in NY, you'll charge NY sales tax once you have passed the economic threshold there. That sales tax would be remitted to NY, not FL. 4) Use tax is a bit different, and goes by different rules.

[@pdworld3421]

Great video. How about how to avoid paying tax on purchases for resail or for POD? Like if purchasing ordering from Printify do I need to fill out an exemption for every state? Or the state I have a Nexus in? Or the states Printify has a Nexus in? Lol

[@LedgerGurus]

Here's a video that explains what you need to know about sales tax for dropshipping: kzbin.info/www/bejne/qaa4ooKgaMebrNU&lc=UgwNKf6VFwu8BTZD9VJ4AaABAg

[@a7xfanben]

Excellent info, thanks a ton for this!

[@LedgerGurus]

Glad it was helpful!

[@BrianAndrewStephens]

Great information. Thanks for this.

[@LedgerGurus]

Glad it was helpful!

[@David-vw5hf]

Extremely informative and clear. Thanks

[@LedgerGurus]

So glad to help. You're welcome!

[@cbcrcr]

Thank you very much for your excellent and complete information.

[@LedgerGurus]

You are welcome. Glad it was helpful!

[@elizabethmccolloch9634]

Thank you for such a helpful video! I am just starting my business and will likely not hit those thresholds for economic nexus for a while. However, I have read a bit about notice and report laws and am quite confused! As a non-collecting seller, in some states, are we required to inform our customers that they have to pay use tax? How do we find which states these are?

[@LedgerGurus]

Yes, you should. We recommend adding a note to your invoices that customers outside your own state may be required to remit use tax since you're not collecting sales tax yet. You will need to register and collect for your own state since you have nexus there.

[@Fredy_Carpower360]

QUESTION: I sell a digital low-priced e-book online, is that a taxable transaction? I'm also planning to sell a digital course, is that also taxable?

[@LedgerGurus]

It depends on the state. You'll have to research each state as you approach nexus to see if you're responsible to charge tax there.

[@brookebescup]

Omg the best explanation ever! You are the best

[@LedgerGurus]

Glad it helped!

[@7Julez23]

This was incredibly informative! 😊answered many questions I had.

[@LedgerGurus]

Glad it was helpful!

[@GraceinLondon]

Thank you for our kind explanation! Here's a quick question. If our company already registered in a state as of the beginning of last year but the sales volume in the last year didn't get the economic nexus threshold at the end of the year. Then can we deregister our business in that sate? If so, how to do it?

[@LedgerGurus]

I definitely suggest you schedule a consultation with one of our sales tax experts for this one: calendly.com/ledgergurus-sales-tax/?

[@shielamaydelatorre158]

thank you for very clear explanation.

[@LedgerGurus]

You are welcome!

[@ashtonannedunn]

Wow, this was extremely helpful! Thank you!

[@LedgerGurus]

Glad it was helpful!

[@anthonyknight1746]

something to note. If your products are exempt/ not taxable but you pass the economic threshold you will still need to file a $0 dollar return in that state or jurisdiction.

[@LedgerGurus]

That is correct.

[@FrankCubillan-cx8uw]

Thanks so much !

[@LedgerGurus]

You're welcome!

[@andriusbagdonavicius4686]

Very well explained!

[@LedgerGurus]

Glad it was helpful!

[@StreaminFreedom]

Wow, Incredibly valuable, and clear.

[@LedgerGurus]

So glad to help!

[@michellechen5060]

Thank you for the informative video! I’m planning to partner with somebody in China to do a cross border e-commerce business in Oregon and I’m stuck on whether to do a LLC or incorporation to be the most beneficial for the owner. I was told that there’s a business model where the company will make a loss on its projects for the first two years. This would eliminate the 21% federal tax on the corporate level. LLC, when the loss, it will not involve your personal tax, if the profit, it will involve your personal tax need to pay the declaration. When INC makes a profit, the company pays a 21% federal tax. As long as the company doesn't pay dividends it won't affect your personal taxes. Which should I do?

[@LedgerGurus]

We are not income tax accountants, so we're not the best ones to answer your question.

[@lorearco4013]

Watching your video from Mexico, tks!!! 😊

[@LedgerGurus]

Thanks for watching!

[@debrahk3634]

Thank you for this video. I have an MBA and can't understand the information I have read on my state's sales tax site.

[@LedgerGurus]

Not a surprise. It's legal mumbo-jumbo.

[@JarmanidasDiwan]

very detaied information. thanks

[@LedgerGurus]

Glad it was helpful!

[@RosanneKSart]

Thank you for this very helpful information.

[@LedgerGurus]

Glad it was helpful!

[@MadeByBethelSwift]

This is incredible! For Print On Demand products, does it count as establishing physical nexus if just a single product is printed in another state for one costumer? In regards to marketplaces, I'm particularly interested in Gelato and Printful but on Printful videos, they've said they COLLECT tax but don't remit it.😳 And it sounds like Gelato charges VAT regardless. By the way, your video should be WAY higher in results. The rest are useless and full of misinformation. Thank you!

[@LedgerGurus]

If you don't OWN the product when it is being printed, then it doesn't count as having a physical presence. I haven't watched Printful's videos, but I suspect they mean that they collect sales tax from you for their own sales tax liability. You'd be responsible for collecting from your customer (after you have nexus and have registered for a permit) since you're the one who has contact with the customer. All Printful does is print and ship. I can't speak about VAT since we only work with US sales tax.

[@nickscreativelab]

Great informtion. Very helpful!

[@LedgerGurus]

Glad it was helpful!

[@samirafernandez5715]

Thanks for the informative video! Is there a specific website you use to verify if your product is taxable?

[@LedgerGurus]

We have a whole section on it in our sales tax course (ledgergurus.thinkific.com/courses/sales-tax-roadmap-made-simple) and you can also look it up on Google.

[@level7performance]

Excellent information.

[@LedgerGurus]

Glad it was helpful!

[@CaliVapor]

Guru FRFR thank you!

[@LedgerGurus]

You're welcome!

[@zainabali7495]

Wow this was so good!!! Thank you 🥰

[@LedgerGurus]

Glad you liked it!!

[@justincampbell9664]

An interesting video, thanks for making it! Does Texas have any unique laws?

[@LedgerGurus]

Yes! Economic nexus for Texas is $500,000 in the processing four quarters. It requires a franchise tax filed if you have a sales tax permit.

[@Angie_playhouse]

Very clear! Thank you!

[@LedgerGurus]

Glad it was helpful!

[@Mass-o8n]

Hey guys! Short question, If I am a online dropshipper In Indiana with a supplier In China and I have no physical store, warehouse, or employees In Indiana/America, that wouldn't count as physical nexus right? Or would It count just because I live here and run the online shop here? Thank you so much🙏

[@LedgerGurus]

You have physical presence in Indiana because you live there and are running your store from there.

[@brandyspain7125]

Thank you.

[@LedgerGurus]

You're welcome!

[@Evie.Vincent]

Thank you so much. This is very helpful.

[@LedgerGurus]

Glad it was helpful!

[@kevdog20]

I have an important question. You said the sales taxes come into play after we reach $100,000 or 200 sales in that state so my question is is it per state? What I am asking is if I get 199 sales in the state of Florida and then 100 sales in Kentucky and 130 sales in New York and thats all I got for my online course that means overall I passed 200 sales but I didn't pass 200 sales in each state so does the sales taxes come into effect per state or overall the states combined sales?

[@LedgerGurus]

The thresholds are different for every state. You can see a complete and updated list at the end of our 10 Steps of Sales Tax guide - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/. The thresholds are PER STATE. So, even if you have 100 sales in Kentucky and 130 sales in New York, that doesn't affect whether you've passed the threshold in Florida. Now, just so you are aware, there is not a # of transactions threshold in Florida, like there is in a lot of states. You've passed the threshold once you've reached $100K in sales in the state of Florida. This is why I suggest you download that guide and check out the chart at the end. One more thing, while sales tax is only affected BY STATE, you do need to calculate the sales in EACH STATE from EACH of your CHANNELS to determine if you've passed the threshold. So, if you've sold $75K into Florida on Amazon, and $50K on Shopify, your combined sales are $125K into Florida, meaning you've passed the threshold. Amazon is responsible for collecting and remitting on Amazon, so you don't have to worry about the taxes on that $75K, but you DO need to collect and remit on the $25K you sold on Shopify AFTER you passed the threshold of $100K. Hopefully this helps.

[@jasonross8233]

Thanks so much for posting this video. I've been asking these questions and this is the best explanation I've come across. I'm new to online business. I have one question. If I sell on my personal shopify store and Amazon, don't some states say I have to add up the transactions from both platforms to see if I have Nexus? Also, does print on demand companies make me have physical presence in that state? Thanks again for this video!

[@LedgerGurus]

Yes you do need to add up both channel’s sales for nexus purposes, but your exposure is only from your Shopify store. And no their physical presence doesn’t affect you :)

[@realmattblev]

Thank you very much for this video.

[@LedgerGurus]

You are very welcome. I'm glad it was helpful.

[@foreverfabrication3675]

I have gone over the $100k threshold but $90k of it was sold to other companies for resale so they are exempt. Does that keep me in the clear? Per your video I do believe so..

[@LedgerGurus]

Yes, that is typically correct. However, sales tax rules vary by state, so it's important to check the specific regulations in the states where you have nexus.

[@Techpriest]

This is probably a dumb question, but let's say I'm in state A and sell products that ship to State B and State C. If I don't have a Nexus in State B or C, I don't collect or pay any sales tax to anyone in those states, but if I sell something in State A, then I have to collect and pay taxes on the products, but only those sold to individuals in State A?

[@LedgerGurus]

Yes correct, and not dumb at all!

[@Techpriest]

@@LedgerGurus Thanks. That helps a lot.

[@jaymelorakeet]

Just starting out.. selling online through my own website... are there any states that don't have a threshold where you would have to register immediately? Also, if I choose to sell through etsy as well.. do they collect and remit sales tax for you?

[@LedgerGurus]

No. Every state that charges state sales tax (all but Alaska, Delaware, Montana, New Hampshire, and Oregon) have economic thresholds. The only states you have to worry about at first are your own state and any other state you have a physical presence in (anywhere else you have people or property). Etsy IS a marketplace and so is subject to marketplace facilitator laws, meaning they will collect and remit for you. For more info on everything you need to know about sales tax, download our 10 Steps of Sales Tax guide - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

[@luposbaseball]

Great video. To be clear on "is my product taxable." I sell educational services. 1-1 with me or educational packages I produce. In my state, services sold do not require me to collect sales tax. The questions I have is, if I sell my course to someone out of my state, am I still considered exempt from collection or does the state of purchase determine tax collection or exemption?

[@LedgerGurus]

The first question is whether you have nexus in the other states. If the answer is yes, then you move on to consider taxability :)

[@dorothypang1708]

Thank you so much! Love this. One clarification, if I am selling on a marketplace facilitator, I will still have to register in the states for #1 and #2, correct?

[@LedgerGurus]

Yes, you still have to register wherever you have nexus.

[@patrice11968]

Hello glad I found you. So I started an ecom business in January and got my first sale in May. I live in Washington DC. I haven't sold much yet and none of my sales have been in DC but I got a letter from the Office of Tax and Revenue saying I'm delinquent in reporting my taxes for quarter 2 ?? what do I need to do?

[@LedgerGurus]

I would register for a sales and use tax license in D.C, use your first sale date as your effective date, and file $0 on your Q2 return, Q3 possibly as well since that was due last week. Let me know if you have more questions!

[@MeMe-fg5sr]

Yes, but the reason I came here is to find out how to actually collect sales tax. If you have to get state and local sales tax licenses prior to being legally able to collect sales tax, but the tax is based on the address of delivery, which is unpredictable in the case of online sales, then what licenses do I need and how do I do it correctly?

[@LedgerGurus]

You do not need to get a sales tax license for a state until you have nexus there, whether through physical presence or by passing the economic nexus threshold in that state. For instance, if you are based in California, you need to get a California sales tax permit right from the start because you have a physical presence there. But say you have several customers in Utah. You don't need to register for a permit and start collecting sales tax in Utah until after you pass the $100K in sales threshold. You will need to pay attention to your sales channels so you see when you are starting to approach those thresholds. Start with our 10 Steps of Sales Tax guide. It will walk you through all of that, and there is a chart in the back with all of the states and their thresholds. You can find it here - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

[@wexoom]

This was most in depth video on taxes I’ve watched! In regards to physical nexus, as a print on demand vendor, do printers location that the order get sent to for fulfillment, does this make it a physical nexus to me? Thank you!

[@LedgerGurus]

Does your company own the printers or are they paying to use them? If you own them then yes, that gives you physical nexus. If you are paying to use them then that does does not create physical nexus.

[@tiffanyhoang9751]

I watched this video a few times already ... LOL 🤣😂 I understand the basic, but your words feel so powerful I feel like I need to really embed it in my brain!! LOL

[@LedgerGurus]

So glad to help!

[@interwovencongregations2829]

Thank you for this video! I have one Q. At the END of the video, I understand you to say that you ONLY need to collect sales tax in a state IF: (a) you have physical nexus there AND (b) you meet economic nexus AND (c) your product IS taxable AND (d) you are NOT using a Marketplace Facilitator. In other words, ALL of those (a, b, c, d) MUST be true for you to be required to collect sales tax. BUT at the 6:00 mark of the video, you say: "When you are first starting to sell . . . only worry about your phyical presence, where you have people, where you have your property. That's where you need to register and start collecting tax ON DAY ONE." So that makes is sound like if ONLY (a) is true, you MUST collect sales tax immediately even if you haven't reached economic nexus. Can you pls clarify that for me? Thanks!

[@LedgerGurus]

You're close. You only need to collect in a state IF: (a) you have physical nexus there AND/OR (b) you meet economic nexus AND (c) your product IS taxable. If you sell through a marketplace facilitator, they should take care of most of your sales tax, but you'll want to check for home-rule jurisdictions in CO and AL.

[@gotabeadsbazaar]

Really nice videos. Haven't had anyone explain it so nicely. I have a question...is TikTok also Marketplace? Will they collect in my behalf and send to state ?

[@LedgerGurus]

Yes, according to this - seller-us.tiktok.com/university/article/agreement?knowledge_id=10013296&identity=1. _" If you sell to buyers based in the U.S., most jurisdictions require that TikTok collects applicable sales taxes on your sales due to marketplace facilitator legislation. For sales to buyers based in marketplace jurisdictions, TikTok will calculate, collect, and remit the sales tax on your behalf. Prices advertised on TikTok Shop are exclusive of applicable sales taxes, which will be calculated and charged at checkout."_

[@ugotlexx216]

How do I set up a consultation with you. Love the video and the way you explain things

[@LedgerGurus]

You can schedule that here: calendly.com/ledgergurus-sales-tax/?KZbin&

[@kanwaljeetsingh4783]

Thanks for this video. Gives good clarity. I have one question though. I use virtual address in Wyoming and i sell private label as amazon FBA seller. I know amazon is collecting sales tax on my sales but do i need to report NIL sales tax to Wyoming state ?

[@LedgerGurus]

yes

[@donnadubble-lucier1670]

This is good news. Thank you

[@LedgerGurus]

Glad to help!

[@emdeevlogs7880]

You have the most straightforward content about this topic. Ty! I have a question about physical nexus. I don't have any employees. I'm the owner of an LLC. I don't have an office or storage. I receive very small volume of items (1 box) that is easily stored on a shelf in my home. Because I am the owner does that establish a physical nexus in that state? Do I have any type of physical nexus at all?

[@LedgerGurus]

Yes, you do have physical presence/nexus in your own state. For more information on this, check out our sales tax masterclass - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax

[@cid8943]

You are so good thank you for this

[@LedgerGurus]

You're so welcome!

[@BinayBk-je3yo]

Very Nice explanation . I just started retail arbitrage on amazon in Texas but I have no idea that whether should get the sales tax permit from Texas or not ? Can you help me understand this ?

[@LedgerGurus]

If you are in the state of Texas, you have physical presence there and need to get a sales tax permit from Texas.

[@tiffanyhoang9751]

Question: time into the video 7min 36 seconds I live in Pennsylvania. I'm selling T shirts on shopify and T shirts are not taxable. The threshold is 100K / 200 transactions. Question - If I make $100,100, I don't need to worry about paying taxes?

[@LedgerGurus]

If what you're selling isn't taxable in that state, then you don't need taxes there. This video explains more: kzbin.info/www/bejne/ep3VhZmwgNR3h7c&pp=gAQBiAQB

[@xuanyingli1428]

Thank you for the video, it's so helpful! I got a question, what would happen if I register the sales tax collection before hitting the threshold?

[@LedgerGurus]

You'll have to start collecting and remitting.

[@cesarmerc7770]

This is very good!

[@LedgerGurus]

Thank you! We're glad you liked it. :)

[@gn2650]

Is recruitment (100% done online) subject to sales tax?

[@LedgerGurus]

Recruitment is difficult because each state has its own definition of what a taxable service is. In the majority of states it wouldn't be taxable, but I would check with the states you are doing business in to be certain.