Hey moms. I know there are probably a lot of you out there that have an online business. Do you have to charge sales tax on handmade items that you sale? And if so, how do you know how much to charge...and does the amount change depending on what state the buyer lives in? Any other tips for a new online business would be much appreciated!
I don't have an online business, but I buy alot online, and from what I've seen, yes, you do charge sales tax unless you include it in the price of the item. Our taxes here are 8.25%.
I sell locally and sell out of state. You have to go to the comptrollers office and get a resale license and number. You collect taxes based on where you are selling the item. If I do an event in Grapevine it's 8.25% tax. If I sell to someone over the internet in another state I don't have to charge tax. You charge tax for the stat you live in. Hope that helps.
Paula
www.kiddosdelight.com