If you are selling products online, it is essential to understand your responsibilities to collect and remit sales tax. Not collecting and paying sales tax can be a costly mistake and may result in significant additional payments and penalties.
In addition, tax guidelines are changing continuously, and staying up to date on the latest requirements is a challenge.
As a business owner, you can easily stay out of trouble if you understand your sales tax responsibilities.
Sales tax is a percentage charged on the retail price of your product. Accounting software or marketplace facilitators such as Amazon, eBay or Shopify can help you determine the appropriate amount to charge for sales tax. This depends on the state and city you are operating your business from and your customer’s shipping address or credit card billing address.
Learn more about sales tax laws from online sellers.
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Source: Small Business Learning