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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Experience:  15years with H & R Block. Divisional leader, Instructor
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Is there such a thing as a national sales tax exemption? If

Resolved Question:

Is there such a thing as a national sales tax exemption? If I sell online merchandise from Florida, can I get a national exemption certificate allowing me to not charge sales tax in each state where I ship?
Submitted: 11 months ago.
Category: Tax
Expert:  Robin D. replied 11 months ago.

Robin D. :

Hello and thank you for using Just Answer,
Sales tax is governed by states not the national level of taxation. If you are in Florida your sales tax is defined by Florida providing you do not have any nexus in any other state. Sales made to out of state customers are not liable to tax in Florida unless the delivery is in Florida.
If you deliver to outside customers then they are liable for Use Tax in their own state.

The federal government is currently considering legislation that would affect large Internet retailers and how online sales taxes are collected in all states. The proposed federal law, called the Marketplace Fairness Act of 2013, would allow states to require sellers not physically located in their state to collect taxes on online and catalog sales made to people in their state.
Sellers that make $1 million or less in annual sales and have no physical presence in the state would be exempt from this requirement. States would have to meet certain criteria to simplify their sales tax laws and make sales tax collection easier before they could require sellers to collect the tax. This would be the exemption you were looking for.

Robin D. :

If you would like to read the entire BILL here is a link
http://www.marketplacefairness.org/bill-text/

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.

Customer:

So if I sell my products on Amazon and they have a fulfillment center in Georgia and product is sold and shipped to 40 states from there, do I owe sales tax to those 40 states?

Robin D. :

If there is a fullfillment center in GA then GA would expect the sales tax as the warehouse would mean nexus in GA. Any sales to GA residents would mean they would have sales tax. Others would see a Use tax on their purchases.
No sales tax to the other 40 states would apply but the buyers would be responsible for use tax.

Robin D. :

If you are not making sales of more then $1mil you would not have to charge sales tax to anyone outside the state where you have nexus.

Robin D. :

Amazon does advise that because of their nexus in the following states sales tax will apply and be charged to the buyer



  • Arizona

  • California

  • Georgia

  • Kansas

  • Kentucky

  • New Jersey

  • New York

  • North Dakota

  • Pennsylvania

  • Texas

  • Virginia

  • Washington

Robin D. :

So if anyone in the above states buys through Amazon they will be charged sales tax

Robin D. :

Your use of Amazon and their fullfillment centers is what makes your customers liable for Sales Tax as opposed to the Use tax.

Customer:

So is there an exemption we can obtain from the states on the list so that we do not need to charge the sales tax?

Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7349
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and other Tax Specialists are ready to help you

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