As a online retailer with no brick and mortar location, do I need to charge customers sales tax when ordered from other states?

UPDATED: Dec 22, 2014

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As a online retailer with no brick and mortar location, do I need to charge customers sales tax when ordered from other states?

Asked on December 22, 2014 under Business Law, Illinois

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The current default rule throughout the United States is that you must collect sales tax on Internet sales to customers in those states where your business has a “physical presence” - warehouse, store, office and sales representatives. That is known as an "origin based" approach. Then there are "destination" based states - where the package is going. Illinois is an origin based state.  Here is a link.  Good luck.

http://blog.taxjar.com/internet-sales-tax-illinois/


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