Web Hosting Talk







View Full Version : sales tax


misterdanny
07-29-2006, 01:48 PM
my game server hosting company is about to go 100% online soon. one thing that was brought up to me by a friend is sales tax, and said i might need to charge sales tax to north carolina residents (the state i live in) because i might ifnd me having to pay for it.

since the product at sale is in a different state and the customer is also in a different state im not sure how to go about sales tax. looking at what everone else does they don't even worry about sales tax. whats the story with this?

Shaw Networks
07-29-2006, 02:20 PM
For inter-state transactions, you don't need to worry about tax. For in-state, you do need to worry about tax. Even then, we don't post sales tax on our website. If someone from Washington (where we are located) purchases an account, we just cough up the taxes later without extra charge to the client.

ATLDedicated
07-29-2006, 03:47 PM
That is how it pretty much works online.

You pay taxes for goods and services sold within the same state. Same thing applies to ebay and any other site the sells you things. You will notice that it lists all the states they operate out of and you have to pay sales tax if you live in one of those states.

334online
07-30-2006, 09:05 PM
In our state you do not charge sales tax on service related items - only on tagible products where you actually ship a product (clothing, computer parts, etc). Check with your state revenue department for more information.

From Our Revenue Website
Sales tax is a privilege tax imposed on the retail sale of tangible personal property sold in Alabama by businesses located in Alabama. The tax is collected by the seller from their customer and remitted directly to the state. All sales of tangible personal property are retail sales except those defined as wholesale sales

I don't pay sales tax on hosting, computer repair or site design but do pay when I sell parts, sell printed orders, etc.