Does, it depend on the state I’m in or the buyer is in? What’s the deal on this?
I’m assuming you mean ebay style selling things on the web. Unless you are a retailer who is licenced by your state, you may not collect sales tax. Generally sales tax on the web is only on in-state transactions. If you are selling something large like a car, you will have to go to the DMV and they will collect the sales tax.
Every state has different rules.
You need to talk to a tax professional in your state.
Watch out for internet sales to Kansas, they are working on collecting tax related to the packages destination. Even Amazon will start adding KS tax to orders sent to Kansas. The new tax law went into place last July, but I have not heard of any Kansas business actually following it yet. Imagine, for example, a company in NY will have to know the sales tax for every city in Kansas. It has been a real mess.
Here is an article about Amazon and Kansas sales tax…
I have an online business registered in the state of Ohio. We are required to collect a flat rate sales tax of 7.5% on all goods we sell to “Billing Addresses” within the state of OH.
As was mentioned earlier, you need to consult your own State’s Tax Department to determine what your rules may be. It is mandatory to register the name of your business and what type of business you are with your state, and part of this is to give you a Business Tax ID.
OH is undergoing discussions in legislature to charge Sales Tax to persons within the state according to their LOCAL Tax rate. This is going to make online transactions quite difficult because each vendor will need a chart of all the counties and ZIP codes and then another chart with all the sales tax percentages for each County/ZIP Code.
If someone purchases a shirt from our store and has a Billing address in OH, they will be charged Sales Tax EVEN THOUGH the shirt might be shipped as a gift to another state.
Sales Tax in OH is applied to the SubTotal PLUS Shipping. (Not applied before Shipping cost). Yes, it’s quite a messy topic, and it appears the States are looking for ways to extract every penny off shipping now as well, even if I’m shipping a product out of my own state.
Here’s what it is for Connecticut.
If you’re just selling possessions, I would think the bolded part would apply. But if you’re selling as a business, you need a permit.
You are collecting more than the state sales tax; Ohio State sales tax is only 6%. You’re likely collecting a county sales tax of about 1% and a municipal sales tax of ½%.
Yes, we have a 6% OH State tax, and a 1.5% County Tax for Montgomery County (Dayton, OH)
Hopefully my post is still helpful to the original poster.