For drop shippers and the companies that use them, sales tax rules can be more confusing than a Rubik’s Cube. When it comes to sales tax, the complexity of the drop shipping equation is made more so by issues of nexus, product sourcing, customer location, and drop shipper location.
If you are a drop shipper, wholesaler, manufacturer, or retailer, download this white paper to determine when and where sales tax is owed, and whether or not a reseller certificate should be submitted.
This white paper will help you answer these 4 critical questions:
- In a drop shipping scenario, when is there a sales or use tax obligation?
- Do states consider drop shipping a nexus-creating activity?
- What constitutes a valid resale certificate?
- How do you get drop shipping related sales tax right?