Drop Shipping Questions about Taxes

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Excursionist
18 0 16

I have an established business that only ships items from Nevada. I currently only charge tax for customers who reside in NV.

 

I want to add a drop shipping company that resides in California.

 

Question 1

With a NV resellers permit and the customer purchases from inventory from the drop shipper in CA, am I or the drop shipper obligated to collect sales tax for a customer in CA or NV or both?

 

Question 2

After adding this drop shipping relationship, if a customer resides in CA and purchases from my NV inventory and it is shipped from NV to CA, am I now obligated to collect sales tax in CA?

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Shopify Staff
Shopify Staff
53 7 7

Hi @BradSCJB!

 

Iris here from the Social Care team at Shopify, thank you for reaching out to us.

 

I'm unable to provide tax advice as we're not tax experts, however; your best route would be to reach out to a local tax consultant as they would be able to provide a definite answer.

 

Going one step further I have found 2 local tax consultants, please check them in the following links:

 

These 2 companies are not affiliated with Shopify, but they both are located in Nevada and have good online reviews.

 

Hopefully, that helps, however; if you do have any other questions please let me know!

 

Iris

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