bigbrad
May '11

Howdy!



Now that I am selling my e-book directly from my website, I am wondering if I need to charge some sales tax?



I live in California and my e-book carries a price of $2.99. Should I configure my account to charge an additional $0.29 at checkout time? If so, how is this done? And would this only apply to the folks that live in California? Can I get a statement from either e-junkie or PayPal that separates the sales made to California people and the sales made to those people who live outside of California?



There has only been one sale so far. And that was to myself, for testing purposes. But now that the transaction has been made, I realize that no sales tax was collected. Did I screw up?



Do I need to get a resellers permit from the California Board of Equalization?



I want to comply with all the laws, but I don't know what they are!



Can anybody shed some light on this issue?



Brad Crouch

  • created

    May '11

  • last reply

    May '11
  • 1

    reply

  • 1.1k

    views

  • 2

    users

  • 1

    link

E-junkie_MonsterSupport Monster
May '11

Hi Brad,



Unfortunately we can't tell you what your tax obligations are, you may or may not need to charge sales tax on digital sales made to and from California.



In general it used to be that only tangible goods were taxed. But more and more states are trying to get their hands on digital sales as well. You will need to check with your local department of revenue to get the definitive answer on what you need to charge and what other laws you are subject to.



If you do need to charge tax for sales to California residents then our cart can ask the buyer for their zip code to determine their location and whether or not they need to be taxed according to the settings you enter.



To create those settings, see our help page on sales tax here:

3http://www.e-junkie.com/ej/help.tax.htm3