Online Sales Tax | The Complete Guide for Online Sellers

[@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.

[@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&

[@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!

[@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

[@sichlerfarmsinalbuquerque7337]

AMAZINGLY CLEAR AND CONCISE EXPLANATION of internet sales tax! You have listened to so many people try to explain tax,and they are incredibly complicated or don’t come close to just giving a few minutes of explanation as you just did!! Thank you!

[@LedgerGurus]

You're very welcome! Glad it was helpful. :)

[@iamoutofideas13]

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

[@LedgerGurus]

Thank you so much! I hope we can continue to provide value.

[@TUCOtheratt]

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

[@LedgerGurus]

Glad it was helpful!

[@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!

[@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!

[@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!

[@awellspringofworksheets8708]

Thank you! Answered all my questions so clearly. 😊

[@LedgerGurus]

You are so welcome!

[@Miguel-se6yn]

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

[@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!

[@TobiasMuldoon]

this is great stuff thank you!

[@LedgerGurus]

You're very welcome!

[@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!

[@lifewithlenz]

This was VERY HELPFUL!!! Thank you!😄

[@LedgerGurus]

You're 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.

[@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.

[@ethanshockley]

Incredibly helpful. Thank you!

[@LedgerGurus]

You're very welcome!

[@BeaBop-gq5we]

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

[@LedgerGurus]

You are so welcome!

[@timroberts3258]

Very clear and helpful. Thank you!!

[@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!

[@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.

[@andriusbagdonavicius4686]

Very well explained!

[@LedgerGurus]

Glad it was helpful!

[@Schiappino]

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

[@LedgerGurus]

Much appreciated!

[@NewIndianera]

Nice video

[@LedgerGurus]

Thank you

[@jennyt.fsbstudio]

Very helpful! Best explanation on here. Many thanks!

[@LedgerGurus]

You're very welcome!

[@budhadley3730]

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

[@LedgerGurus]

So glad we could help you so much!

[@a7xfanben]

Excellent info, thanks a ton for this!

[@LedgerGurus]

Glad it was helpful!

[@shielamaydelatorre158]

thank you for very clear explanation.

[@LedgerGurus]

You are welcome!

[@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!

[@mmtaurus1990]

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

[@LedgerGurus]

Awesome, thank you!

[@cbcrcr]

Thank you very much for your excellent and complete information.

[@LedgerGurus]

You are welcome. Glad it was helpful!

[@Mrslivdomoto]

This was so helpful! You explained it well

[@LedgerGurus]

Glad it was helpful!

[@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. :)

[@manueloancia7387]

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

[@LedgerGurus]

You are so welcome

[@BrianAndrewStephens]

Great information. Thanks for this.

[@LedgerGurus]

Glad it was helpful!

[@nancyreynolds-CaminoExperience]

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

[@LedgerGurus]

Glad it was helpful!

[@JarmanidasDiwan]

very detaied information. thanks

[@LedgerGurus]

Glad it was helpful!

[@level7performance]

Excellent information.

[@LedgerGurus]

Glad it was helpful!

[@terim7687]

Thank you, this info was very helpful!

[@LedgerGurus]

I'm so glad it helped you!

[@RosanneKSart]

Thank you for this very helpful information.

[@LedgerGurus]

Glad it was helpful!

[@TheGLpanda]

Thank you for making this video!

[@LedgerGurus]

Glad it was helpful!

[@Angie_playhouse]

Very clear! Thank you!

[@LedgerGurus]

Glad it was helpful!

[@choolwee]

thank you , God bless you!

[@LedgerGurus]

Thank you.

[@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.

[@brookebescup]

Omg the best explanation ever! You are the best

[@LedgerGurus]

Glad it helped!

[@brandyspain7125]

Thank you.

[@LedgerGurus]

You're welcome!

[@musicforlife70s]

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

[@LedgerGurus]

Glad you liked it. Thank you.

[@Evie.Vincent]

Thank you so much. This is very helpful.

[@LedgerGurus]

Glad it was helpful!

[@zainabali7495]

Wow this was so good!!! Thank you 🥰

[@LedgerGurus]

Glad you liked it!!

[@nickscreativelab]

Great informtion. Very helpful!

[@LedgerGurus]

Glad it was helpful!

[@David-vw5hf]

Extremely informative and clear. Thanks

[@LedgerGurus]

So glad to help. You're welcome!

[@pewee2496]

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

[@LedgerGurus]

Glad to help!

[@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.

[@FrankCubillan-cx8uw]

Thanks so much !

[@LedgerGurus]

You're welcome!

[@cid8943]

You are so good thank you for this

[@LedgerGurus]

You're so welcome!

[@Leturbulencedemavie]

Thank you so much very helpful

[@LedgerGurus]

Glad it helped

[@ashtonannedunn]

Wow, this was extremely helpful! Thank you!

[@LedgerGurus]

Glad it was helpful!

[@SadeOrjay-l8t]

Very helpful!

[@LedgerGurus]

Glad it was helpful!

[@just_aristides]

so crisp. 5 stars!

[@LedgerGurus]

Thank you.

[@nataliehilscher5071]

I've read your guide and watched this but I'm still a little confused... Being based in MN, do I need to ONLY collect sales tax for sales made to other MN customers (assuming I do not reach nexus in other states)? Or collect MN sales tax on ALL orders since I'm based in MN and have to pay in sales tax on everything I sold from my MN base?

[@LedgerGurus]

Sales tax is based on the state the customer is in. So, you only collect MN sales tax from MN customers.

[@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!

[@cesarmerc7770]

This is very good!

[@LedgerGurus]

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

[@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/

[@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.

[@NKn0ws]

Thank you!

[@LedgerGurus]

You're welcome!

[@Michigan_Wolverine]

Well done!

[@LedgerGurus]

Thank you!

[@Fflower2018]

Watching your video from Mexico, tks!!! 😊

[@LedgerGurus]

Thanks for watching!

[@laurend3413]

Thank you so much!

[@LedgerGurus]

You're welcome!

[@7Julez23]

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

[@LedgerGurus]

Glad it was helpful!

[@realmattblev]

Thank you very much for this video.

[@LedgerGurus]

You are very welcome. I'm 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/?

[@celsovizentimdemoraes3064]

Hello!! tks for the video, i have a question, about economic nexus, i should count state by state? or together ? for exemplo, CA 150 invoices, plus 20 NY = 170?? tks

[@LedgerGurus]

Economic nexus is determined on a state by state basis.

[@StreaminFreedom]

Wow, Incredibly valuable, and clear.

[@LedgerGurus]

So glad to help!

[@safetycitychic]

Do you have a video to fill out the Reg 1 in Illinois

[@LedgerGurus]

We did a whole video dealing with Illinois sales tax here - kzbin.info/www/bejne/m4Oyiauoib-DptU

[@olhamartinez8420]

Thank you 😊

[@LedgerGurus]

You're welcome 😊

[@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!

[@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!

[@donnadubble-lucier1670]

This is good news. Thank you

[@LedgerGurus]

Glad to help!

[@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

[@AlexMckenzy]

Thank you for sharing! I liked and subscribed. I have a question though : @9:20 you said I dont need worry about remitting sales tax But do i need to register in that State and file every year that i have nothing to remit? That's what missing for my comprehension because i do Amazon FBA and this market facilitator assigned to me 3 of their warehouses in Usa to ship my 1st product. I didn't sale anything yet. Very new seller. I already registered in 2 States and about to register on the 3thd one until i stumbled on your video. Do i need to keep registering and filing every year? what i should do now? Do i need to cancel my registrations in the 2 States? thanks for helping. My very time in e-commerce i'm confused now. Thank you!

[@LedgerGurus]

You could cancel your registrations for now. Amazon is going to be collecting and remitting on all your sales in the US, so all you'd need to do is submit $0 returns anyway.

[@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.

[@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.

[@halabassyouny1654]

Hello, I would like to schedule consultation call with you. How can I do that and how much it will cost? Thanks!

[@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.

[@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.

[@redemptionshield]

Do you have a plugin that can pull together all the sales of each state. I have not hit any thresholds.

[@LedgerGurus]

No, but if you download all your sales reports, you can pull them together with a pivot table. We describe how to do that in this blog post: ledgergurus.com/amazon-sales-tax-report/?KZbin&

[@jennyhernandez6031]

Great Video. thank you! I live in TX. I will need a sales tax permit for my ecommerce business, but shopify with pay them to the state for me. Correct?

[@LedgerGurus]

No. Shopify is not a marketplace facilitator, and so will not remit for you. And you have to set up your store to collect, too. I highly recommend you watch our free sales tax masterclass before you do anything else. It will answer this question in more detail for you. ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax?KZbin&

[@jennyhernandez6031]

@@LedgerGurus thank you! wiil do!

[@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.

[@BuckteethMechanic]

Thanks. So I’m in automotive repairs and been buying parts from local suppliers providing sales tax ID, to not pay sales tax as a business at the point of purchase, and turn around resell them to customers without collecting taxes. I’m selling the parts at purchase value: do I need to pay the state sales tax of these parts regardless of reaching the threshold or does the threshold apply to my circumstance?

[@LedgerGurus]

If you're selling in your own state, then you do have to collect and remit sales tax from your customers or you need to pay it yourself.

[@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.

[@barkavenuedoginc6191]

is printify a marketplace facilitator??

[@LedgerGurus]

No. It's a print-on-demand and dropshipping platform.

[@gurcan37]

thank you so much and appreciated that was magnificent informations. I am located different country except usa, and I am planing to sell some phisical product by online to usa, as far as I understand from you, I need to care about to worry with economic nexus. But that treashold can not be reach for each state for me in couple of years as I belived, so is it not necessary to worry with sales tax anymore, do I?

[@LedgerGurus]

You're probably okay. Just watch the thresholds. You can find a list of them by state in our 10 steps of sales tax guide - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

[@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.

[@manvanross]

Thank you! So, I live in Arkansas, regardless of how few digital illustrations I sell, I do need to register and collect for Arkansas because that’s where I create the illustrations?

[@LedgerGurus]

Yes, you'll only have to do that for Arkansas customers, though, until you reach nexus in other states.

[@manvanross]

@@LedgerGurus thank you so much

[@LedgerGurus]

@@manvanross you're welcome

[@alicehappyeveryday]

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.

[@julissalebron4934]

Hi, thank you so much for this video. Just to make sure I understand, my physical Nexus is where my inventory is or from where I am shipping from. Also, if I didn't reach an economic nexus in a year, the transitions or amount doesn't add to the next year? It start counting your transations and amount the next year ? Thank you in advance!

[@LedgerGurus]

You have physical nexus wherever you have people and/or property. So yes, you have nexus where your inventory is. Nexus thresholds are calculated on a trailing 12-month basis, not necessarily a calendar year. Keep an eye on your sales to see when you start getting close, and then make sure you register after you've hit it in each state.