If i am dropshipping from china to the United States do i need to select all 50 states to collect sales tax from or just the state I am located
Topic summary
The question concerns sales tax collection obligations for a dropshipping business importing from China to the US.\n\nKey Concept - Nexus:\nSales tax collection is triggered by having \
I am no expert in terms of taxes, so please do your own research as well but:
-You must collect all applicable taxes, and you should generally collect the sales tax rate that applies at the location of the sale.
-You would typically collect sales tax for another state only if you have a physical presence in that state. In legal terms, this is known as having a “sales tax nexus” there. Your physical presence might be a retail store, a warehouse, or a corporate office, even if the facility is not open to the public. Entering into an affiliate agreement with a resident of the state may also establish a physical presence or nexus there, in some states.
I hope that is helpful!
@biznazz101
Search Nexus in the US. You collect sales tax if you have Nexus. This can be a physical location or it can be based on sales volume. Each state is different. Usually though, if you sell over 100,000 in a year or have more than 100 transactions, you have nexus and are expected to collect and pay sales tax. Then you get to experience the confusing world of filing.