To tax or not to tax. That is the question.
If you’ve ever run a drop shipping business you know how confusing the tax issues can be. There are plenty of controversial conversations across the web about whether or not to tax, how to tax and where to tax. And everyone, from sellers to CPA’s have a different answer.
For myself, I pay tax in my own state only …at the moment. The new internet tax rules may change that. As far as Nexus goes, that is another issue that leaves many guessing. I’ve actually had one prospective vendor-to-be require that I pay the sales tax to THEIR state even though I have no nexus there. Nice try. My response ? Pay your own sales tax, I have enough of my own.
Here is an excellent article written by Ned A. Lenhart, MBA CPA from Ampersand that provides some additional insights and perhaps a few more twists to the equation. Read More