Do i need to pay sales tax on all my sales?

Craig_Stephens
New Member
1 0 0

Hello,

I hope you can shed light on this.

My business is registered in Florida and I dropship items through AliExpress to customers in the US. Am I right to presume that I only pay sales tax for customers in Florida? And I should not be paying taxes on sales from customers from other states? As an additional info, my business is only registered in Florida and nowhere else.

Please shed light on this as Im not sure if I have to declare 7% of all my sales in Florida as sales tax. Or should I only declare 7% sales tax on customers in Florida.

I noticed in Shopify, it's not charging taxes on customers from other states. Also in Quickbooks, it doesnt calculate any taxes from customers from other states. It does calculate tax on customers based in Florida though.

Thanks for your clarification.

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MarcTaxJar
Tourist
17 0 3

Hi Craig! Great question, To begin, you should be remitting sales tax on all sales made to customers in Florida. It's your home state which means you definitely have nexus. As for the rest of your sales, it depends on a handful of variables. I recommend reading TaxJar's Sales Tax 101: I’m in a Drop Shipping Relationship blog post. It goes over the different sales tax scenarios that could fit your business. Good luck!

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MaureenAvaTax
Tourist
4 0 0

Hi Craig, it's important to know your nexus. As Marc eludes to variables, drop shipping can be tricky because it's not only the seller's nexus that comes into play, but, potentially, the supplier/shipper's as well.  You might find this short video helpful from Avalara: Drop Shipping - Who Collects Sales Tax?  Best regards to you!

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