Red Stag Fulfillment, a growing fulfillment business for a multitude of e-commerce companies, makes it its business to understand everything that impacts the firms that it serves.
A recent Red Stag post tackled taxes. Just what is owed when? Equally important are where — and why — taxes come into the picture.
“With sales tax, getting started is the hardest part,” notes the post. “And one reason that can be so tough is because sales tax laws and rules can be confusing.”
That’s true. Sales taxes vary from state to state and boast a bevy of caveats, depending on the nature of the business and the jurisdiction.
For instance, did you know that some state taxes are origin-based and others are destination-based?
“How much you, as an online seller, charge buyers in your home state depends on if you live in an origin-based or a destination-based sales tax state,” explains RSF. “In origin-based states, you charge sales tax at your location (your home or warehouse – wherever the order “originates.”) But most states are destination-based, meaning that you are required to charge sales tax based on your buyer’s ship to location.”
Then there’s the fact that state sales tax rates vary widely.
“Some states only have one statewide rate, while most others may allow local areas to also require sales tax,” advises Red Stag. “When you are charging sales tax, you may be required to charge a state rate + county + city + special taxing district rate.”
Complicated? Yes, though having information at the ready makes the business of e-commerce much easier.
Check out Red Stag Fulfillment’s post here and learn more.
The post Red Stag Fulfillment Has the Lowdown on Taxes for E-Commerce Companies appeared first on Mobile Marketing Watch.