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Is it ok to not charge tax on out-of-state sales just because you aren't registered?

Full Question: I am worried that my company does not charge sales tax to customers who are out of the state - simply because we are not yet registered with that state.... One customer of ours owns franchises all over the US - although we only charge sales tax in the states where we are registered. I want to help my company become compliant asap. Are there seminars or webinars that could help teach me where and how to file?? PLEASE HELP!!

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Answer:

Diane Yetter photoYou are correct that you shouldn't charge tax for deliveries into a state where you are not registered. You should be charging tax on deliveries into states where you are registered if you don't receive a valid exemption certificate from your customer. The determination as to whether you should be registered is referred to as nexus. You establish nexus if you maintain a substantial physical presence in a state based on the activities of people (employees or agents operating on your behalf) or through the presence of property in the state. The Sales Tax Institute offers an online class discussing nexus and definitions related to sales tax. We also have a 3 day Basics of Sales Tax Class that could be helpful in learning more about sales tax. Visit the Sales Tax Institute site for more information or to register for a class. We also offer sales tax consulting services and can work with you to determine if you are managing your sales and use tax function correctly. Please contact me directly if you have any questions whatsoever...

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