The place to find business sales tax information

— as well as solutions, services and jobs!

We have an office in the state that purchases all supplies for resale but we have the items drop-shipped. What tax rate should we be charging?

Full Question: I have a question in regards to what tax rate should we be charging to our customers/clients. We have an accounting office in the state that purchases all supplies for the film/t.v. productions as resale and we have the items drop shipped to the production location. Do we invoice clients the appropriate tax rate where the supplies are being drop shipped to or can we charge them the tax where our acctg. offices are located since that is where the invoicing occurs?

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.


Diane Yetter photoThe tax should be computed based on the ship to location if you are shipping goods. The location of your accounting office where invoicing occurs usually is not relevant unless you are shipping goods within the same state and the state is one of the few that are considered "origin" states which means the local tax rate is based on the ship from or order acceptance location. However, this only applies in a few states like IL, MO, TN, UT, OH and a few others and only if the seller and buyer locations are in the same state.

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


Access to any portion of 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 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.