Turbify does not have specific information regarding the tax rules you may need to set up for your store. As of early 2004, the determination of whether you are required to collect sales tax depends on the state in which your business is registered and the types of goods or services being sold. For example, if your firm sells apparel and is registered in Vermont, you are required to collect a 6% sales tax for each transaction and pay it quarterly to the State of Vermont. On the other hand, if your apparel firm is registered in neighboring New Hampshire, you do not have to collect any sales tax.
Further complicating the matter, in addition to state taxes you may be required to collect, there can be and likely are county, city, or special district taxes that may apply as well depending on the county and city in which you do business.
Additionally, your business may be required to collect taxes in other states if your business has a physical presence in other states or otherwise meets the definition of the term nexus. Your obligation to collect tax in other states often depends on if you have warehouse space in another state (drop-shipping may qualify), if you have employees in other states, and numerous other qualifying events. Each state is different and rules are always changing. As such, Turbify is unable to advise you of your tax obligations because they are dependent on your location, your goods sold, and other factors.
The good news is there are resources available for merchants. If you are unsure as to your state's requirements, contact your state's tax department. To locate your state tax department's web site, visit the Federation of Tax Administrators. Many states can offer advice to merchants around tax requirements.
More Resources on Sales Tax:
Note: Turbify is unable to provide tax advice to merchants for determining your tax requirements based on your location(s) and products. Due to the financial and legal implications surrounding tax requirements, Turbify strongly recommends merchants consult a small business tax advisor for determining the exact tax rates applicable to your store.
