In every state, as a seller, you are required to collect sales tax from a customer based on the nexus rules by state.
If you are a reseller, then you need to complete a reseller certificate and hand it over to your supplier. This is so he does not charge sales tax on your purchases.
Also, few states they are not called sales tax. They may be called excise tax in Hawaii, gross receipts tax in Washington.
FYI, most online eCommerce platforms these days have sales tax automation plug in or built in features. So, it is not an additional item on your startup list.
** Based on a response to a question posted on quora.
Posted In: TaxGo Back