united-states, e-commerceI am going start using TaxJar.com for my web application to calculate the required sales tax for an order.
I notice on their sites API that there can sometimes be a State, City and County tax that are all different amounts.
My question is how are these taxes paid. Does there need to be a total for each tax point at the end of the year, so a total for every City, State and County? This seems too complicated so I am guessing totals are more general. What level of detail is required when submitting a yearly tax calculation.
This is for a Californian C-Corp.
You pay sales tax for states in which you have nexus. Physical presence (i.e. a storefront, etc.) is nexus, but so can other things be. For example, in Texas, sending a salesman into an area creates nexus, as does delivering an order with a company vehicle, or going into an area on business, or …
As far as your sales tax report, you have to report the amount of taxable income in each jurisdiction that you collected sales tax in (or should have) - that is each city, each county, each transit authority, each … you get the picture.
If you have nexus in a given state, you have to do that according to that state’s rules for each state.
I am pretty sure you only pay sales tax for the states in which you have a physical presence. So you would probably only have to pay for stuff sold to fellow Californians. But, you should definitely check with an accountant in your state on that, especially since CA does have different rates for each city.
Alternatively, you could check http://www.boe.ca.gov/sutax/pam71.htm and other state resources but an accountant is way easier to deal with.
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