Question about Taxes & Facebook/Instagram Shop

[Trinity1]

So, I had a frequent customer of mine order through my IG/FB shop(connector), and I just realized today that they paid taxes. Now, I am in Illinois and my customer lives in California. When purchasing on my Shopify website, out of my state customers don't pay taxes. So when I file my taxes, I just put how much I made in out of state sales. My customer tends to buy regardless of a little price increase, but I feel like if another customer notices, they might wonder what's up, and I don't want any issues. Is there something to change in Meta about that, or what? Like why is there a difference where one platform gets charged out of state sales taxes but one doesn't?

[KP_Enterprises]

Instagram/Facebook collects and remits taxes on all sales through their platform for all states. At least, that's what I've found in our system.

[She12]

Does it mean you don't have to remit any sales tax anymore? Or do you still need to file and pay? The business has office & warehouse in Illinois but sells in different states.

[KP_Enterprises]

In our system the sales through IG/FB are deducted from our filing because those sales are reported by IG/FB. We only remit sales tax that we have collected. IG/FB remit the taxes that they have collected. As I understand it, companies like IG/FB, Amazon, Walmart, are all required to collect and remit sales tax for all sales going through their system.

Also, as long as you have an active sales tax number with any state, you are required to file and pay. Even if you have zero sales in that state, you still file.
Selling into different states doesn't necessarily remove your requirement to collect sales tax. You should look into "nexus" in each state. Once you reach the nexus point, you are required to register and collect taxes for that state. This includes economic nexus which is related to sales volumes.

[She12]

Thank you! Is there ever an instance when you have to pay sales tax to both states where you have origin nexus and economic nexus for the same sale?

[KP_Enterprises]

No, you don't pay two states for the same sale. The tax is collected based on either origin or destination. We collect tax for out of state sales based on destination.