• Chapter Treasurers

  Sales tax for online sales

  Posted by Karen L. Hanus, AHIP on January 13, 2023 at 10:08 am

  Hello, chapter treasurers–

  I’ve yet another puzzle for you all.  Our chapter fundraising committee is thinking of holding an online fundraiser.  They might sell physical items or virtual items (i.e. custom Zoom background).  If we hold a physical fundraising sale at an in-person conference, we get sales tax exemption status in the state in which the sale will be held and we don’t collect sales tax under that exemption.  But, what do we do if we’re holding an online fundraiser?

  I believe because our gross sales would be so low, we wouldn’t have to collect sales tax.  On this site, it says that remote sellers without a physical presence in a state (we don’t actually have any warehouse or storefront or office in any state) are covered by economic nexus laws.  That usually means that you have to meet the states’ sales and /or transactions thresholds.  That’s usually at least 200 transactions or at least $100,000 in sales.  We wouldn’t hit either of those thresholds.

  If you provide online sales, do you avoid collecting and paying the states sales taxes under these economic nexus laws and is there any paperwork that you complete regarding that?  Or do you have to get tax exempt status in one or more states to avoid having to collect state sales tax?

  Thanks for any input you can give!

   

  Karen Hanus
  karen.hanus@aah.org
  Midwest Chapter/MLA treasurer

   

  Karen L. Hanus, AHIP replied 2 years, 1 month ago 1 Member · 0 Replies
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