NEXUS!

Oma
Tourist
15 0 2

Greetings! I will be opening my online store in few days. Excited and nervous.  I have a question about nexus.  Would the location of my dropshipping stores ( at the moment just two ) be considered nexus?  I will have products shipping from my house ( FL ). THANK YOU!

Replies 2 (2)
Open_Sky_Consul
New Member
2 0 0

 

Hi Oma,

I would refer you to https://blog.taxjar.com/drop-shipping-scenarios-sales-tax/ at Taxjar's website to get clarification on whether you need to collect sales taxes or not.  Ned Lenhart does a real nice job demystifying this complex issue.

Brian

Open Sky Consulting, LLC

Polaris_Tax___A
New Member
8 0 0

Oma,

Many States are making it easier to collect sales tax by expanding the definition of nexus in their State, we have seen some States say that a simple dropship location creates nexus, others are approaching this by the number of transactions, others by the location of a wharehouse. In our Accounting Firm we suggest most of our clients look at TaxJar as a solution to streamline their Sales Tax Reporting process.

I would also suggest working with an Accounting Firm that is intemetly involved with eCommerce businesses, when dealing with Sales Tax you do want to make sure you have a good Accounting process in place. A good Accounting Firm can help make sure you are capturing all require information.

Joe Serrone Polaris Tax and Accounting Phone: 704) 947-3178 Web: www.polaristaxandaccounting.com