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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13605
Experience:  15years with H & R Block. Divisional leader, Instructor
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i am a Canadian company. we sell retail product through our

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i am a Canadian company. we sell retail product through our website. our US orders are sent from a 3rd party fulfillment warehouse in the US. Should i be collecting any sales taxes?

Thanks

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviseor with over 15 years of experience.

Customer:

Hi

Robin D. :

Having a fullfillment center in a US state constitutes a nexus in that state.

Robin D. :

Hi

Robin D. :

That places you in the sales tax laws for that state.

Robin D. :

If you can tell me the state I can give you the specifics

Customer:

so my warehouse is in illinois. I am a Canadian company and I have no business set up in the US. I gues you are telling me that I should be registered as a US business entity and collect relevant taxes and file returns etc?

Robin D. :

Your nexus in the US state (for sales tax) is determined by your using the warehouse in the US. You would need to collect sales tax based on Illinois law. They see a operation such as yours as in Illinois.
http://tax.illinois.gov/Publications/Pubs/Pub-113.pdf

Robin D. :

This just sales tax not income tax. Sales tax in the US is a state requirement not federal

Customer:

ok. Thanks... So I should have some type of Illinois status for my business and that will then enable me to collect relevant taxes and file sales tax returns in Illinois?

Robin D. :

You would need to register for Illinois sales tax. Yes there are requirements for remitting and for filing returns taht stipulate the sales.

Robin D. :

The link I sent you explains how to register

Robin D. :

look on page 4

Customer:

ok thats a great help, thanks.

Robin D. :

You are most welcome

Robin D. :

Your positive rating is always thanks enough.

Customer:

Ok.. done.

Robin D. :

Thanks

Robin D. and other Tax Specialists are ready to help you

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