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Sales Tax Question

Our company is in a state that has sales tax, while we often make sales to customers in states that don't have it. If someone were to place an order in a state that doesn't have sales tax, but drive to our location to pick it up - should they be charged sales tax?


Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

You should talk to your CPA firm because I think you may have to consider:
-your state laws on taxable transactions
-whether your out of state customers can provide a Sales Tax Exemption certificate that you can accept.

Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

I would guess that if the shipper of record is not a common carrier, then sales tax needs to be collected.

But Len is correct. Better to side on caution that go through a Sales Tax Audit!!!!

Richard Baikie
Title: Director of Finance
Company: Super King Markets
(Director of Finance, Super King Markets) |

Many of the Sales Tax laws recognize tax due based on where title changes hands. Generally, if someone takes possession at your location in a state that charges sales tax, if they cannot provide a certificate of exemption that your state accepts, it is irrelevant where they are from. They would need to be charged sales tax.


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