Sales Tax for Online Business (Yes or No?)

Do you need to collect sales tax for your online business, specifically for your digital products?

In today's video I review the 4 main situations you may fall into, as well as what to do if you live and work in a state with no sales tax at all, such at New Hampshire, Oregon, Montana, Alaska or Delaware.

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James W. Hart
The Hart Law Firm, P.A.
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#salestax #digitalproducts #hawthornlaw

[mariekastleman]

I feel like you didn't address the most common scenario which is that someone is selling digital products across the whole US (or the world for that matter) from a state that collects sales taxes on digital products. For example, I'm in Utah and I want to sell digital products via etsy or another platform to anyone and everyone that has access to that platform.

[DejaDrewit]

Some customers dont even put their address when buying a digital product since it requires no shipping. So i’d have no idea even where that customer is...

[RayaFlora]

Tons of valuable information, thank you so much. It helped me a lot.

[gn]

What if a non resident alien sales digital products?

[gary]

CA doesn't not sales tax "shipping and handling" only the tangible product, but try pointing that out to a on line vendor who also has stores in CA.

[crystalcalendars]

I heard that an attorney offering consultation online does NOT pay sales tax. If so, those small individual sellers should not pay sales tax as well. Just because those small sellers are not as "educated" or/and "organized" by some form of union as an attorney/nurses..., they should not be taken advantage of and put on layers of layers of burden.

[excitedsolutions]

Are “sales taxes” and “use taxes” the same thing? I thought in some states “use taxes” were put in place to capture “catalog sales” out of state (before the internet) and subsequently that unless a state has sales tax for digital products specifically that most of digital sales falls under the “use tax” rules.

[Sustainavore]

Thanks for the info. Many of your links are broken, unfortunately

[sirisaacsmith]

Do the same rules apply to services instead of products?

[connieabbott]

It sounds far too complicated to keep up with and continue doing all the other jobs an entrepreneur has...but there are remedies: there are plugins you can get for websites; Shopify and Etsy do some of the heavy lifting; if you do an internet search for these things and use strategic terms in doing so, you'll find some automated remedies that may work for you.

[itzmaryaunaa]

Is there away I can get in contact with you about llc

[GoldDiggersTV]

Hi Jim, I live in Europe and majority of my sales happen all over USA (no idea about state). In July i made 1700$ in sales maybe 800$-1000$ came from US. I got automated message from Stripe that i exceeded tax threshold (probably in US) and i need to collect tax now. Any advice on where can i start?

[cmwatcds]

Didn't see the list for digital taxes. What about Texas.

[gamingwithgeko]

You pronounced Oregon correctly, you must have lived there or have friends there