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Can I collect sales tax from customers in different states without violating tax laws in California? What are the requirements?

To collect sales tax from customers in different states, you must comply with the tax laws of each state where you have customers. In California, the sales tax is imposed on retailers for the privilege of selling tangible personal property at retail [1.2]. The tax rate is 1/2 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in this state [1.2].

To determine if you are required to collect sales tax in California, you must determine if you are considered a “retailer engaged in business in the district” [1.2]. This includes any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in California or for delivery in California by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000) [1.2].

If you are considered a retailer engaged in business in California, you are required to collect sales tax from customers who purchase tangible personal property for delivery in California [2.2].

To register to collect sales tax in California, you must apply for a seller’s permit from the California Department of Tax and Fee Administration [1.1].

It is important to note that the tax laws in each state may differ, and you should consult with a tax professional to ensure compliance with all applicable laws.

In summary, to collect sales tax from customers in different states without violating tax laws in California, you must comply with the tax laws of each state where you have customers. In California, you must determine if you are considered a retailer engaged in business in the district and register for a seller’s permit if required.

Source(s):
Jurisdiction

California