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":
ledgergurus.com/portfolio/10-...
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:
ledgergurus.thinkific.com/col...
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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.

[@yazmincolin7878]

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

[@LedgerGurus]

Glad to help!

[@budhadley3730]

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

[@LedgerGurus]

So glad we could help you so much!

[@mmtaurus1990]

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

[@LedgerGurus]

Awesome, thank 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.

[@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!

[@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. :)

[@David-vw5hf]

Extremely informative and clear. Thanks

[@LedgerGurus]

So glad to help. You're welcome!

[@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!

[@Miguel-se6yn]

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

[@LedgerGurus]

Glad it was helpful!

[@jennytherrien3570]

Very helpful! Best explanation on here. Many thanks!

[@LedgerGurus]

You're very welcome!

[@TUCOtheratt]

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

[@LedgerGurus]

Glad it was helpful!

[@ashtonannedunn]

Wow, this was extremely helpful! Thank you!

[@LedgerGurus]

Glad it was helpful!

[@terim7687]

Thank you, this info was very helpful!

[@LedgerGurus]

I'm so glad it helped you!

[@timroberts3258]

Very clear and helpful. Thank you!!

[@LedgerGurus]

Glad it was helpful!

[@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.

[@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!

[@TheGLpanda]

Thank you for making this video!

[@LedgerGurus]

Glad it was helpful!

[@7Julez23]

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

[@LedgerGurus]

Glad it was helpful!

[@Evie.Vincent]

Thank you so much. This is very helpful.

[@LedgerGurus]

Glad it was helpful!

[@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.

[@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!

[@emadlouka3820]

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

[@LedgerGurus]

Glad you liked it. Thank you.

[@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!

[@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&

[@nancyreynolds-CaminoExperience]

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

[@LedgerGurus]

Glad it was helpful!

[@brookebescup]

Omg the best explanation ever! You are the best

[@LedgerGurus]

Glad it helped!

[@StreaminFreedom]

Wow, Incredibly valuable, and clear.

[@LedgerGurus]

So glad to help!

[@Schiappino]

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

[@LedgerGurus]

Much appreciated!

[@Angie_playhouse]

Very clear! Thank you!

[@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!

[@shielamaydelatorre158]

thank you for very clear explanation.

[@LedgerGurus]

You are welcome!

[@nickscreativelab]

Great informtion. Very helpful!

[@LedgerGurus]

Glad it was helpful!

[@giovannipuccio2654]

love the effort in the replies! subscribed!

[@giovannipuccio2654]

p.s. and the video

[@LedgerGurus]

@@giovannipuccio2654 Thank you for all your support!

[@cbcrcr]

Thank you very much for your excellent and complete information.

[@LedgerGurus]

You are welcome. Glad it was helpful!

[@RosanneKSart]

Thank you for this very helpful information.

[@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

[@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.

[@zainabali7495]

Wow this was so good!!! Thank you 🥰

[@LedgerGurus]

Glad you liked it!!

[@andriusbagdonavicius4686]

Very well explained!

[@LedgerGurus]

Glad it was helpful!

[@pewee2496]

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

[@LedgerGurus]

Glad to help!

[@realmattblev]

Thank you very much for this video.

[@LedgerGurus]

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

[@lorearco4013]

Watching your video from Mexico, tks!!! 😊

[@LedgerGurus]

Thanks for watching!

[@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!

[@user-qg2co3rw2w]

very detaied information. thanks

[@LedgerGurus]

Glad it was helpful!

[@Lapluieperceverence]

Thank you so much very helpful

[@LedgerGurus]

Glad it helped

[@cid8943]

You are so good thank you for this

[@LedgerGurus]

You're so welcome!

[@level7performance]

Excellent information.

[@LedgerGurus]

Glad it was helpful!

[@NKn0ws]

Thank you!

[@LedgerGurus]

You're welcome!

[@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.

[@user-zc6di6rg3x]

Very helpful!

[@LedgerGurus]

Glad it was helpful!

[@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 :)

[@cesarmerc7770]

This is very good!

[@LedgerGurus]

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

[@donnadubble-lucier1670]

This is good news. Thank you

[@LedgerGurus]

Glad to help!

[@brandyspain7125]

Thank you.

[@LedgerGurus]

You're welcome!

[@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.

[@user-sj5je3mw5g]

Thank you!!!

[@LedgerGurus]

You're welcome!

[@laurend3413]

Thank you so much!

[@LedgerGurus]

You're welcome!

[@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.

[@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.

[@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.

[@Michigan_Wolverine]

Well done!

[@LedgerGurus]

Thank you!

[@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.

[@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.

[@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.

[@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.

[@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 :)

[@mofouad9665]

Hi, thank you for the informative video. I wanted to ask if Amazon sellers are still required to apply for a tax permit in whatever state they have physical nexus in even if Amazon collects & remits the sales tax. And do international sellers (located in Canada) need to register for sales tax with those states?

[@LedgerGurus]

kzbin.info/www/bejne/f2LFfZVriKieaqs this video should be able to answer your questions. But let me know if you still have questions after watching the video :) happy to explain further!

[@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

[@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!

[@michaellong335]

Such a great video! I am starting a dropshipping store on shopify and I'm so confused. So do I only need to worry about sales tax once I reach the 200 sales/ $100k mark or do I need to collect tax in the state I have a physical address in immediately? Also, do I need to collect taxes in the state the dropshipping warehouse is in? This is all so confusing! Thanks for your advice!

[@LedgerGurus]

Good questions! And we have a video to answer them - kzbin.info/www/bejne/qaa4ooKgaMebrNU.

[@nandinibajaj9236]

Hi, thanks for the amazing insights on US sales tax. I have few follow up questions: Does it mean that the seller (who is selling through its own website) is not required to collect and pay sales tax on any product it sells in any other state (if it has not passed the economic nexus threshold)? Will it be fair considering that if the buyer in that state procures the same good from a brick and mortar store will have to pay sales tax?

[@LedgerGurus]

It is true that until a seller passes the economic nexus threshold, they are not responsible for collecting and remitting sales tax in that state. If regards to the buyer, I don't know if fair comes into it. It's just how the laws are written at this time.

[@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

[@alisonschermerhorn4971]

Thank you for the helpful info! I have inventory in NV, which is a destination-based state (sales tax on orders placed within NV are taxed based on where they are shipped to (the customer’s delivery address)). If I only have physical nexus and not economic nexus yet, would I only collect sales tax on E-commerce orders with a delivery address in NV? For example, no sales tax would be charged on orders shipping to CA.

[@LedgerGurus]

Yes, if you have a physical presence in a state, that means you have nexus there even if you haven't hit the economic nexus threshold yet. So yes, you would need to collect sales tax from NV customers.

[@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.

[@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/?

[@user-dd7bt5qd3m]

Hi! Thank you for the great explanation 🥰 Could you please advise how to know if my products are taxable? Thank you)

[@LedgerGurus]

You can look it up online for each state. There are 4 main categories for taxability exemptions: services, clothing, SaaS, and food & supplements. Rules are different by state.

[@crush_number_9]

Great video! I do have one question. I just started my business selling through (only) marketplace facilitators a few months ago, but I jumped the gun and registered for a NC sales tax and use # right away. Does this mean I need to file quarterly, even if it's just to say $0 owed? Or will the state realize Etsy, TikTok Shop, etc have collected/remitted for me?

[@LedgerGurus]

You will need to file, but you'll state $0 as the amount you need to remit.

[@domingovillasmil]

Awesome explanation! Question, once i surpass economic nexus, do i have to pay taxes on that state forever or it resets annually?

[@LedgerGurus]

Economic nexus is determined on a rolling 12 months. Once you cross the threshold and register, you can reevaluate based on whether or not sales go down in that particular state.

[@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."_

[@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.

[@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.

[@lauraspencer8486]

Great information. Where do i find information to see if my recordings and ehandbook are taxable? Also, I didn't see the link for the guide you mentioned.

[@LedgerGurus]

The guide Kexin was talking about is our 10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business. You can find that here - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

[@jacquelineporada2254]

Thank you for always making a very informative videos, i just started my Amazon biz and send my 1st shipment how do i determine my physical presence in other state? Since Amazon is moving my inventory?And when i generate inventory report from SC my inventory pass through different state and warehouses, and made my first sale Ship from Ohio, and after i determine where i have physical presence when is the time to register to a state? Thanks

[@LedgerGurus]

Here is a video that should be helpful! kzbin.info/www/bejne/f2LFfZVriKieaqs let me know if you have more questions after watching it!

[@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.

[@bwrt]

Very good info thank you! I would appreciate clarification on my particular situation please. I am a sole proprietor in WA state with a home based online Hypnosis business I pay income tax on sales from my services. I am creating MP3's to sell online. Do I already have Nexus because of my Hypnosis business or can I sell my MP3's until I hit the 200/$100,000 threshold?

[@LedgerGurus]

You already have nexus in Washington because you are physically in Washington Andi believe digital products are taxable in Washington.

[@JohnOKeef]

Hi, I plan on selling online from the state of Illinois with a resellers tax exemption. I am wondering if this exemption in illinois also applies if I'm buying from out of state and selling products to out of state consumers. Am I exempt from sales tax on the supplies I purchase or the sales tax that I would typically charge my customers?

[@LedgerGurus]

Your question is kind of confusing, but I think that's because you're confused on how reseller exemptions work. You won't need a resellers exemption in Illinois because you already have nexus there because you're located there. So, you'll need to register for a sales tax permit and collect sales tax from your IL customers and then remit it to the state. Since you're just starting your business, you're unlikely to have nexus in other states, including the states where your suppliers are located. So you can get a reseller exemption certificate for those states. The easiest way to do that is by using the SST and/or MTC forms. Here's a video explaining how that works: kzbin.info/www/bejne/eZ-Qp6aaaa2fiqc

[@MackPackreselling]

Thank you for the video is was really helpful. I just have one important question that I hear people talking about. If ALL of my sales are on a marketplace and I have nexus in my home state and others i hear people say you still have to file with that state but put a zero on it. Please tell me if this is true.

[@LedgerGurus]

If you don’t have any nexus in other states you don’t need to register and file $0 returns. If you do have nexus in those states, and you are selling exclusively on Amazon, it’s a business decision that you have to make to decide if you want to register and file $0 returns. The only way you would have nexus is physical presence through FBA, and a good amount of states say FBA don’t create physical presence either.

[@olhamartinez8420]

Thank you 😊

[@LedgerGurus]

You're welcome 😊

[@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.

[@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!

[@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.

[@WGMojo]

Thanks!

[@LedgerGurus]

You're very welcome. :)

[@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/

[@user-xx7ii4vq9z]

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.

[@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&

[@classysalonspa6172]

You are amazing!!! I am also a seller on amazon, and I am living in CA. I already had the seller permit, but when I want to buy wholesale from (sam club, Ikea,...) they asked me to show the tax exemption card to not pay the tax to them, could you please let me know how to apply for that card. Because if I don't have that card I have to pay almost 10% for the product I purchase from a wholesale store. thank you.

[@LedgerGurus]

Since you are already registered with CA, you should also received the exemption certificate from CA. I would contact CDTFA if you haven’t received it.

[@annetteswanson8461]

Can you discuss the use tax and what has to be reported on the sales and use tax form.

[@LedgerGurus]

Use tax is for inventory and products that were purchased without tax charged that are used or consumed in your business. Use tax is reported generally on the same return as sales tax and you usually report it only to your home state.