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BeadSouk
Posts: 30
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Posted: Wed Mar 18, 2015 2:39 pm Post subject: Sales Tax |
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New here to eCrater.
I added a 6% sales tax for Michigan, does this mean that only Michigan customers who order from my shop will be charged a sales tax?
Or does it mean that all customers regardless of location will be charged a Michigan sales tax?
I ask this because someone in the forums said it should be zero. which really confused me.
Clarification on this would be appreciated. Thank you. |
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SUPERPLUSHNSTUFF
Posts: 1542
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Posted: Wed Mar 18, 2015 3:48 pm Post subject: |
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Only customers buying from Michigan will be charged the sales tax. If you are in Michigan and collecting sales tax for your state that is correct. No one outside Michigan will be charged sales tax. |
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BeadSouk
Posts: 30
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Posted: Wed Mar 18, 2015 5:00 pm Post subject: |
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SUPERPLUSHNSTUFF wrote: | Only customers buying from Michigan will be charged the sales tax. If you are in Michigan and collecting sales tax for your state that is correct. No one outside Michigan will be charged sales tax. |
Thank you for confirming this. |
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tigercreekgifts
Posts: 6293
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Posted: Wed Mar 18, 2015 6:11 pm Post subject: |
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You only have to collect sales tax for the state in which your business is located, even if just an at-home business. Also, you may or may not know that you only have to collect sales tax if you have a license that permits you to collect such tax which is usually only required for businesses that make over a certain amount of profit but it varies by state. Usually, state chamber of commerce websites will have links for their local small business info. and taxation site. |
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BeadSouk
Posts: 30
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Posted: Wed Mar 18, 2015 6:58 pm Post subject: |
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TheMysteriousRose wrote: | You only have to collect sales tax for the state in which your business is located, even if just an at-home business. Also, you may or may not know that you only have to collect sales tax if you have a license that permits you to collect such tax which is usually only required for businesses that make over a certain amount of profit but it varies by state. Usually, state chamber of commerce websites will have links for their local small business info. and taxation site. |
Thank you for your comment, oh yes, I have a license, have to fill out the sales and use tax form every year. For me, I am required to pay the sales and use tax once per year, some businesses have to pay quarterly depending on sales, here in Michigan. |
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