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When a third party export shipment is shipped directly to a port and out of country, should we charge sales tax?

Full Question: When a third party shipment is sent on behalf of the company and the items ship directly to a port and out of the country, should the company be charging sales tax?

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Answer:

Diane Yetter photoIn general, if a sale is made to a company for export outside of the United States, it is not subject to sales tax. However, in order for this exemption to apply, delivery must not be made to the purchaser within the United States. The seller must deliver the property either directly outside the US or to a qualified export agent. Copies of export documentation should be obtained from the export agent to substantiate the exemption and delivery outside the US.

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