Sales Tax

[lahatte]

I am new to the hosting reselling business. I had a question about taxes. How do you handle state sales tax on the sale of domains, hosting packages, etc..? Do you charge state sales tax of a domain, hosting package, etc in your state? I've never seen sales tax applied to a domain sale or web hosting sale.

 

Thanks!

[lahatte]

Anyone know anything about this? I'm sure 100% of the people on here deal with this.. heh.. I know it probably differs from state to state, but any input would be greatly appreciated. I am in Mississippi and when I called the State Tax Commission I was transfered 5 times then disconnected... lol... of course most of the workers up there don't have a clue. I just need to make sure I don't get hammered on an audit.

 

Thanks

[DataHosts]

We charge for in-state purchases of any product we sale.

[lahatte]

We charge for in-state purchases of any product we sale.

 

So you charge sales tax on all in-state domain sales, web hosting sales, etc? Thanks, that helps me a lot! I think we are going to do the same for all in-state sales. Better safe then sorry.

[9DollarDomains]

We're in Canada, so YMMV, but most places require that you charge customeres tax based on where the customer is. So, here it's...

 

1) Both Provincial and Federal tax for anyone in our province.

2) Just Federal tax for anywhere else in Canada.

3) No tax for anywhere else in the world.

 

Obviously, I'M NOT A TAX LAWYER, so you'd want to check with your accountant, but that's probably the case pretty much everywhere - State tax for your state residents, and no tax for others.