Hey there! I have a question about taxes. I live in MS and my online business is registered with MS. When I have out of state shipping orders, it is not charging them MS state tax. Isn’t it suppose to charge them MS state tax? Please help!
Topic summary
A Mississippi-based online business owner is experiencing an issue where out-of-state orders are not being charged Mississippi state tax, despite the business being registered in MS.
Key Points:
- The seller expected MS state tax to apply to all shipments, including those going out of state
- Support confirmed that if the tax profile is configured for the business location, it should automatically collect taxes on products
Guidance Provided:
- Mississippi collects origin-based sales tax (detailed in a State tax reference link)
- The seller was advised to contact MS state tax authorities or a local tax professional to clarify whether they’re required to collect sales tax on out-of-state shipments
Status: The issue remains unresolved pending clarification from tax authorities about MS sales tax collection requirements for interstate commerce.
Hey @emmiejayes .
Thanks for reaching out.
I appreciate the context that you have shared with us as that is very helpful! This is a great question.
If you have set up your tax profile to collect sales tax for your location, the tax profile will automatically begin to collect taxes on the products. With that being said, I did notice that Mississippi does collect origin-based sales tax as detailed on our State tax reference. If you’re not sure whether you’re required to collect sales taxes outside of Mississippi, then contact US state tax authorities or a local tax professional.
Let me know if you have any questions.