Financing, tax rates, and accounting
I've been reading up on the collection of internet sales taxes and still unclear. As I understand it I charge sales tax for items I sell in Texas because my physical presence is in Texas. Since I have nothing outside of Texas and no nexus then I don't charge sales tax for the other 49 states.
However I read that some states will start collecting sales tax no matter if you have no nexus within their state. I also read that there are thresholds that define whether or not you collect sales tax.
I assume that the merchant account will add the appropriate taxes to a sale generated on my site. I'm assuming that in a Texas sale I get those taxes which I in turn will pay to Texas but what about the state taxes collected for an out of state sale?
Clear as mud! Where can I go to get a good clarification of internet sales tax? Would a tax professional/accountant be up to speed on this?
Thanks for looking.
O.k. I found a place that gave me some information that cleared this up for me. Short answer is if I have over $100K in sales or 200 transactions in a year then I have to collect and remit taxes.
Now my next question is how to not charge sales tax since I am not over the threshold except of in state sales tax. More reading to do.
https://www.patriotsoftware.com/blog/accounting/economic-nexus-laws-by-state/
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