Do I need to charge sales tax for my home-based business?

BtrippyshopLLC
Visitor
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Hi everyone. I was wondering if I need to charge sales tax? I’m a small 1 person business in VA. I have not registered for sales tax because I was under the impression I did not need to. I don’t have a physical business, I sell shirts and jewelry I make from my home. Any advice helps thank you! 

Reply 1 (1)

BOS-WesleyA
Visitor
1 0 0

Hey there, Shopify does a great job of keeping track of all of the other states thresholds and if you have met them or not to be required to file sales tax in those states. You will find it under Settings>Taxes and Duties and then if you select "United States" there will be a link that says "manage all liabilities" and from there you can see what "action" needs to be taken, along with that tracking I was talking about under "No action required".

 

As for the state of VA... I can assure you that you will need to setup a sales and use tax account through the state's DoR site. I used to be an accountant for a property management company with locations in 27 states and all but the state I live in (Oregon) had sales and use taxes we had to file either annually, quarterly, or some even monthly. Most states however make it very easy for you register once you have setup your entity with them. There are a ton of resources for people just like you starting their own business! 

It all can be super overwhelming, I know, but you got this! Best of luck!