Sales Tax Implications of Drop Shipping

Here’s a million dollar question: Who is on the hook to pay sales tax when you drop ship?

Is it the seller, buyer, or shipper? For many businesses, the sales tax rules for drop shipping can be more confusing than a Rubik’s Cube. And any mistakes could result in a painful audit. When it comes to sales & use tax, the complexity of the drop shipping equation is made even more complex by factors like where you have tax obligation, where you collect, product sourcing, customer location, and drop shipper location. So how do you keep it straight?

Read this free whitepaper on drop shipping and learn:
  • Who should collect tax
  • If you might owe tax in other states
  • Tips for staying compliant

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