| Discussion Forum: Thread 338888 |
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| | | Author: | zephyr891  | | Posted: | Apr 29, 2023 06:38 | | Subject: | Do I have to remit sales tax for any states? | | Viewed: | 88 times | | Topic: | Taxes | |
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| I found the list of states for which Bricklink collects sales tax & is responsible
for remitting it to those states. I compared it to a complete list of U.S. states
& D.C. There were 8 states NOT on the Bricklink-collects-tax list: AL, AK, DE,
MS, MT, NH, ND, OR. Of these, 5 don't have a state sales tax (AL, DE, MT,
NH, OR). That leaves AL, MS, ND. Am I responsible for collecting & remitting
sales tax to these states, or (I hope) is the Bricklink-collects-tax-for-these-states
list incorrect? Thanks for any help!
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| | | | | Author: | jennnifer | | Posted: | Apr 29, 2023 09:13 | | Subject: | Re: Do I have to remit sales tax for any states? | | Viewed: | 30 times | | Topic: | Taxes | |
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| In Taxes, zephyr891 writes:
| | I found the list of states for which Bricklink collects sales tax & is responsible
for remitting it to those states. I compared it to a complete list of U.S. states
& D.C. There were 8 states NOT on the Bricklink-collects-tax list: AL, AK, DE,
MS, MT, NH, ND, OR. Of these, 5 don't have a state sales tax (AL, DE, MT,
NH, OR). That leaves AL, MS, ND. Am I responsible for collecting & remitting
sales tax to these states, or (I hope) is the Bricklink-collects-tax-for-these-states
list incorrect? Thanks for any help!
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I am no tax expert, but...
BrickLink is responsible for all sales taxes in states that are enforcing the
Marketplace tax rules.
Since your business is located only in one state, you would only ever be responsible
for sales tax within that state. But since Maryland is part of the Marketplace,
you don't need to do anything.
~Jen
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| | | | | | | Author: | zephyr891 | | Posted: | Apr 29, 2023 10:43 | | Subject: | Re: Do I have to remit sales tax for any states? | | Viewed: | 39 times | | Topic: | Taxes | |
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| Thank you for the response. I'm confused. I thought sales tax depended on
the buyer's address - is that right? I should have clarified in my question
that I'm asking as a new seller, trying to set up my shipping and other policies.
So when I asked about collecting state sales tax & remitting the taxes collected
to the various states, I was asking as a seller. I'm unfamiliar with the
"Marketplace tax rules". Could you direct me to somewhere that explains
it? Thanks so much.
In Taxes, jennnifer writes:
| | In Taxes, zephyr891 writes:
| | I found the list of states for which Bricklink collects sales tax & is responsible
for remitting it to those states. I compared it to a complete list of U.S. states
& D.C. There were 8 states NOT on the Bricklink-collects-tax list: AL, AK, DE,
MS, MT, NH, ND, OR. Of these, 5 don't have a state sales tax (AL, DE, MT,
NH, OR). That leaves AL, MS, ND. Am I responsible for collecting & remitting
sales tax to these states, or (I hope) is the Bricklink-collects-tax-for-these-states
list incorrect? Thanks for any help!
|
I am no tax expert, but...
BrickLink is responsible for all sales taxes in states that are enforcing the
Marketplace tax rules.
Since your business is located only in one state, you would only ever be responsible
for sales tax within that state. But since Maryland is part of the Marketplace,
you don't need to do anything.
~Jen
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| | | | | | | | | Author: | peregrinator | | Posted: | Apr 29, 2023 10:54 | | Subject: | Re: Do I have to remit sales tax for any states? | | Viewed: | 27 times | | Topic: | Taxes | |
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| In Taxes, zephyr891 writes:
| | Thank you for the response. I'm confused. I thought sales tax depended on
the buyer's address - is that right? I should have clarified in my question
that I'm asking as a new seller, trying to set up my shipping and other policies.
So when I asked about collecting state sales tax & remitting the taxes collected
to the various states, I was asking as a seller. I'm unfamiliar with the
"Marketplace tax rules". Could you direct me to somewhere that explains
it? Thanks so much.
|
The marketplace rules mean that the marketplace has to collect and remit sales
tax on your behalf. In this case BrickLink is the marketplace, they collect and
remit sales tax according to the buyer's location, as long as an onsite payment
method (PayPal or Stripe) is used.
If they did not do this, you would have to collect and remit sales tax for any
State in which you had a physical location.
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| | | | | | | | | | | Author: | jennnifer | | Posted: | Apr 29, 2023 10:57 | | Subject: | Re: Do I have to remit sales tax for any states? | | Viewed: | 36 times | | Topic: | Taxes | |
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| In Taxes, peregrinator writes:
| | In Taxes, zephyr891 writes:
| | Thank you for the response. I'm confused. I thought sales tax depended on
the buyer's address - is that right? I should have clarified in my question
that I'm asking as a new seller, trying to set up my shipping and other policies.
So when I asked about collecting state sales tax & remitting the taxes collected
to the various states, I was asking as a seller. I'm unfamiliar with the
"Marketplace tax rules". Could you direct me to somewhere that explains
it? Thanks so much.
|
The marketplace rules mean that the marketplace has to collect and remit sales
tax on your behalf. In this case BrickLink is the marketplace, they collect and
remit sales tax according to the buyer's location, as long as an onsite payment
method (PayPal or Stripe) is used.
If they did not do this, you would have to collect and remit sales tax for any
State in which you had a physical location.
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Thank you for explaining it much better than I did!
~Jen
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| | | | | Author: | tEoS | | Posted: | Apr 29, 2023 14:58 | | Subject: | Re: Do I have to remit sales tax for any states? | | Viewed: | 42 times | | Topic: | Taxes | |
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| To the best of my knowledge:
Sales tax is paid by the purchaser. If BL did not have the onsite feature of
collecting sales tax, then I would need to pay the amount to the state (annual
state taxes).
In Michigan this is called Use Tax. I'm happy that I don't have to deal
with that anymore, as all the online shopping that I do has sales tax collection.
The exception pertains to physical & online entities that are involved in the
collection of sales tax. In which case they have to remit those funds to the
appropriate state.
My guess is that you are not part of either scenario, whether you sell on BL,
Ebay, etc.
[snip]
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USA, Maryland
