trippypea
Established Member
Joined: Apr 12, 2011 20:56:05 GMT -5
Posts: 430
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Post by trippypea on Jul 12, 2020 10:08:48 GMT -5
Anyone know anything about sales tax collection on an online business? For background, I am setting up an online store that will sell graphic printed clothing only. I am in PA and will be using a print on demand facility in MI, so everything would be shipping from MI. I believe I have nexus in both PA and MI. As near as I can figure it, I do not need to register for a license to collect sales tax from PA buyers because I do not meet economic threshold ($100,000+ in sales or 200+ transactions in a calendar year). Even if I did meet economic threshold, the items I am selling are NOT taxable in PA, so I wouldn't have anything to collect anyway. I also believe shipping exclusively from MI gives me nexus in MI. MI has the same economic threshold as PA so I again wouldn't be required to register for a license to collect sales tax. However, I know clothing IS taxable in MI (6%). Do I have to report anything here anyway? And what about the other 48 states that I have no obligation to collect sales tax in? Do I need a disclaimer on my site reminding people of their responsibility to document any unpaid sales tax on their tax returns?
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