I'm about to launch a site with a partner overseas. We'll be selling software. I expect (hope ) we'll get sales from lots of states and lots of countries.
How should I handle sales tax and VAT for sites like this?
In theory US states aren't supposed to charge sales tax for out-of-state vendors, but lots of states are doing all they can to grab revenue wherever they can. I know that submitting sales tax to different state jurisdiction is an incredible headache. I have no idea what the VAT laws are in various countries. I don't want to run afoul of the state tax agencies, the IRS, or other nations' tax authorities.
Obviously this is a problem for almost any online vendor, so surely somebody here has already solved the problem. What's the secret?
Thanks!
Gary
How should I handle sales tax and VAT for sites like this?
In theory US states aren't supposed to charge sales tax for out-of-state vendors, but lots of states are doing all they can to grab revenue wherever they can. I know that submitting sales tax to different state jurisdiction is an incredible headache. I have no idea what the VAT laws are in various countries. I don't want to run afoul of the state tax agencies, the IRS, or other nations' tax authorities.
Obviously this is a problem for almost any online vendor, so surely somebody here has already solved the problem. What's the secret?
Thanks!
Gary
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