[goodsnow]

So I'm thoroughly confused about how I charge sales tax when selling my t-shirts online in my own state which is CO.

I have my physical address in Denver, which is basically just my virtual office, I don't sell anything from there. I will be using BigCartel as my website and PayPal as my payment system.

The problem is PayPal only allows you to setup a per state sales tax rate, which for CO is 2.9%. I also need to charge city/county tax depending on where a person is ordering from. I've called and messaged the local CO Tax office and basically they said I can't just charge a flat tax rate to everyone because it varies depending on where the customer lives.

I don't understand how other people setup their tax rates since I know I'm not the only one using BigCartel and PayPal.

HELP!

 

[tcrowder]

There is a setting in PayPal to set up sales tax according to zip codes. You can even set for a range of zip codes. This might take a little doing for you but it is possible.

 

[goodsnow]

There is a setting in PayPal to set up sales tax according to zip codes. You can even set for a range of zip codes. This might take a little doing for you but it is possible.

Yea I found the setting for zip codes. I think that should work.

Thanks man!

 

[rini]

So I'm thoroughly confused about how I charge sales tax when selling my t-shirts online in my own state which is CO.

I have my physical address in Denver, which is basically just my virtual office, I don't sell anything from there. I will be using BigCartel as my website and PayPal as my payment system.

The problem is PayPal only allows you to setup a per state sales tax rate, which for CO is 2.9%. I also need to charge city/county tax depending on where a person is ordering from. I've called and messaged the local CO Tax office and basically they said I can't just charge a flat tax rate to everyone because it varies depending on where the customer lives.

I don't understand how other people setup their tax rates since I know I'm not the only one using BigCartel and PayPal.

HELP!

For internet sales, you only need to charge state sales tax if the person buying is in the same state as you. If the buyer is from another state, sales tax is the buyer's responsibility. This is the advantage of online sales, and why states are trying establish making sellers charge sales tax, or a federal sales tax, as states are losing sales tax money on internet sales.

It would be virtually impossible to know how much sales tax to charge to buyers in CO because our sales tax is so damn goofy because of home rule. For the specific zip code and area we're in, we have sales taxes for the city of Aurora, the county of Arapahoe, and special sales taxes for the light rail, the new Univ. of CO Anschutz campus, and some a special tax for the Havana revitalization project. But, someone 2 blocks away from us wouldn't have to pay for the Havana revitalization project.

There's no way a business can know all the goofy tax rules in every place in CO. That's why if you have a brick & mortar retail establishment where people buy from the premises, you charge the full sales tax. But, if you sell online to anyone else in CO, you just charge state tax.

If you sell out of state, you don't have to charge sales tax (unless there's some states that have mandated their tax laws to change that).

 

[goodsnow]

For internet sales, you only need to charge state sales tax if the person buying is in the same state as you. If the buyer is from another state, sales tax is the buyer's responsibility. This is the advantage of online sales, and why states are trying establish making sellers charge sales tax, or a federal sales tax, as states are losing sales tax money on internet sales.

It would be virtually impossible to know how much sales tax to charge to buyers in CO because our sales tax is so damn goofy because of home rule. For the specific zip code and area we're in, we have sales taxes for the city of Aurora, the county of Arapahoe, and special sales taxes for the light rail, the new Univ. of CO Anschutz campus, and some a special tax for the Havana revitalization project. But, someone 2 blocks away from us wouldn't have to pay for the Havana revitalization project.

There's no way a business can know all the goofy tax rules in every place in CO. That's why if you have a brick & mortar retail establishment where people buy from the premises, you charge the full sales tax. But, if you sell online to anyone else in CO, you just charge state tax.

If you sell out of state, you don't have to charge sales tax (unless there's some states that have mandated their tax laws to change that).

Yea I was wondering how I would do that.

So I would be fine if I just charge the 2.9% State Sales tax for anyone who buys in CO?

 

[rini]

Yea I was wondering how I would do that.

So I would be fine if I just charge the 2.9% State Sales tax for anyone who buys in CO?

Yep, that's how you do it.

 

[goodsnow]

Yep, that's how you do it.

Awesome, so much easier. Thanks man I really appreciate it. That was the one thing I still needed to figure out that was looming over me.