No sales tax on orders outside the state of Nevada
DirectStoreUSA.com's physical presence is located in the state of Nevada. Therefore, only sales within the State of Nevada are subject to sales tax. All other sales to customers with a shipping address outside of Nevada are not subject to sales tax.
Example 1: Joe from MIAMI, FLORIDA, purchases items from DirectStoreUSA.com:
This order IS NOT subject to sales tax, because the shipping address is
OUTSIDE THE STATE OF NEVADA.
Example 2: Jane from RENO, NEVADA, purchases items from DirectStoreUSA.com:
This order IS subject to sales tax, because the shipping address is
INSIDE THE STATE OF NEVADA.
Below you will find a short explanation about online sales and the according taxes, in particular sales and use tax.
Who has to Pay Online Sales Tax, and in which states:
An online business is responsible for paying sales tax in states where it has nexus. For example, an online business will have to pay sales tax on orders shipped to states where it has offices or warehouse facilities. It will not have to pay sales tax on orders shipped to states where it has no physical presence.
Consumers are responsible for paying use tax on tangible personal property that was not previously assessed sales tax by a business. For example, a person that resides in Louisiana will have to pay use tax to the state of Louisiana for personal products she purchased from an online business based in Arizona.
Nexus determines whether an online business has to pay sales tax on orders shipped to a certain state. Nexus refers to the connection that a business has with a given state. If the business has nexus (a connection) with a state it will be responsible for collecting and paying sales tax on orders shipped to that state. Conversely, a business will not have to collect sales tax on orders shipped to a state where it does not have nexus.
Consumers Pay Use Tax
States that collect sales tax from business also collect use tax from consumers. Use tax is assessed on untaxed tangible personal property by the state in which a person resides regardless of where the product was purchased.
Essentially, states with sales tax require residents to pay taxes on any products purchased for personal use that were not assessed sales tax by the seller at the time of purchase. Few people actually track and report use tax, and states have found enforcing use tax to be very difficult.
We hope this information helped you understand the latest tax regulations when it comes to online sales. If you still have any questions or are unsure about whether your order is subject to sales tax please feel free to contact us at any time!!!