The place to find business sales tax information

— as well as solutions, services and jobs!

Our company is incorporated in NY but has location in other state. What about sales tax?

Full Question: Our company is Incorporated in New York State but we have a location in Virginia, are we required to charge our Virginia customers sales tax on the taxable portion of our sales?

Brought to you by:

NOTE: This site does NOT provide client-specific tax advice. Information provided is general and may NOT apply to your particular situation. Do NOT take any action based upon any site content until you have received advice from an independent, qualified tax practitioner with whom you have a professional-client relationship. All content is subject to our disclaimer.

Answer:

Diane Yetter photoThe determination as to whether you are required to collect sales tax on sales that you make in other states depends on whether you have established nexus in that state and then whether the products or services you sell are subject to sales tax in that state. If you sell goods to customers in other states that impose a general sales tax like Virginia, then you have to determine whether you have established nexus in that state. Generally, nexus is established through a substantial physical presence in the state either through people or property on either a permanent or temporary basis and can include activities performed by agents operating on your behalf. What establishes nexus does vary by state and your activities in the state. If you are deemed to have nexus in the state to which you are selling taxable goods or performing taxable services, then you are required to collect that state's tax on all taxable transactions into that state. In this case, you have a physical location in Virginia, which establishes nexus for you in that state. As such, you are required to charge sales tax to your Virginia customers on the taxable portion of your sales to them. We would be happy to help you determine where you have nexus.

(Not quite what you need? View SALES TAX QUESTIONS home page to access other topics or use site-wide SEARCH in upper right)

Disclaimer:

Access to any portion of SalesTaxSupport.com is contingent upon your acceptance of our Terms of Use. This Web Site and content provided by STS Publishing, LLC and its third party content providers, including, but not limited to information, documents, forms, comments, advice and opinions, is for informational purposes only, and is not a substitute for professional advice, nor does the use of this Web Site constitute a professional-client relationship. The Web-Site also includes advertisements, directory listings, job postings and links to third party web sites, all of which are provided for your convenience only and in no way constitute a referral, endorsement, or warranty by SalesTaxSupport.com of any product or service provided by such third parties. All content is provided “as is” with no guarantee regarding accuracy, suitability, or timeliness. Your reliance on any content accessed on or through the Web Site, or on any product or service provider is strictly at your own risk.