We definitely will

Log onto Paypal and click on Merchant Services. You'll see a set of links under
'Shipping & Tax' Click on Tax Calculator. There you will find a place to set 'Domestic sales tax rates' and 'International sales tax rates' . Enter the appropriate information for your location and you're done.
Craig

Wow!!! I don't have enough Aspirin in the house to try to figure this issue out. I'm having a hard enough time wrapping my head around Sales Tax being charged on "services" and now this... I know my state requires me to collect taxes from anyone in the state that purchases (technically even if they are from out of state, but we do business in my office). I don't want to have to charge 7% more so I won't take a loss on my in-state sales, although if I can get away with it that's 7% that I could tuck away for retirement

To all those NY'ers out there - I have to ask - I don't believe Paypal will work? Actually, I question google too? Does someone think otherwise? If so (especially with Paypal) can you post why you think/feel that way? Thanks in advance.

hi there guys, i read all the post in this area, am i getting this right
i am in MN and i do have ta charge tax fer the customers that order from MN
does the shopping cart knows when the customer is not in MN ?

Lester

Not based on CC experience, but just yesterday I ordered something from a NY vendor using Google checkout, and it added sales taxes with a "NY" annotation to show why it was assessed. I expect PayPal knows this, too. It's based on the ship-to zip, I believe.

I think that is right - it is based on ship to address. So, if I sell something to a NY resident (I am in NY) the sales tax is assessed. If I sell to someone from New Jersey - it is not.

There are some states where you are supposed to collect that state's sales tax if you ship something into that state. California is considering it...but there is a lot of opposition...still I expect it to pass as similar laws have passed in other states and failed opposition from big players like Amazon. I am in California, so I already collect tax on California sales. New York is one of those states where you are supposed to collect and submit tax to that state if you sell something and it is shipped to New York. I believe Washington state is another. The loophole is that if you sell less than $10,000 annually to any of those states, you are not required to report. It is a huge boondoggle mess for small business bookkeeping. Imagine if all states require this and you are required to report to all 50 states...and let's assume you might also be required to report to municipalities/districts within those states.

I understand the concern states have about the loss of tax revenue, still perhaps a national sales tax on internet sales sent to one place would make so much more sense...

It's ALMOST darn discouraging. If I didn't have a fighters spirit in me, I'd have thrown in the towel when I came upon the Tax Collection laws. I'd like to see a National Sales Tax, that not only puts a stop to this kind of non-sense (for all businesses to have an easier life) but also to replace the income tax (I'm sure flames are going to flare now).

Yeah, all this talk reminds me...I have a check to write...