Sales Tax Laws
I live in a State that does not have a sales tax.
If I sell product to customers outside of oregon, would I have to charge them sales tax?
We would normally ship directly to customers from oregon. Once in a while we would ship direct from the factory(California) to another state. Would this make a difference?
Thanks
2 Answers from Attorneys
Re: Sales Tax Laws
You should call the various states in which you are sending your goods and ask them if you have to pay their sales tax, since each state has its own rules. If you're considered to "do business" in that state, you will have to pay the sales tax. Good luck!!!
Re: Sales Tax Laws
Check with a local attorney to be absolutely sure, but I know of no state that does not have an exemption for sales to out-of-state customers. You have no obligation to collect sales tax for the state where your customers reside unless you have a "tax nexus" in that state. By way of illustration, if you have a production facility in CA, you would be required to charge sales tax to your customers in CA and remit the tax to CA.
For the avoidance of confusion, let me restate that sales to customers not in CA and where you have no tax nexus would be exempt from CA sales tax (even if the order is shipped from CA), and you have no obligation to collect and remit sales tax for such states.