Can I advertise that I do not charge sales tax?

[Maximus1000]

I am located in a small state, so 99.9% of my sales come from other states. I do not charge anyone outside of my state sales tax. Currently I have setup advertising on PPC campaigns that say I do not charge sales tax. I started thinking about it and I am not sure if I am doing anything wrong here. Does anyone have any insight into this?

[Maximus1000]

let me clarify, I want to know if it is legal to be advertising that I do not charge sales tax. I dont want to be penalized later on for saying this.

[digitalv]

You can advertise it if it's true - if you aren't charging separate sales tax, then it's a true statement.

For the people in your own state are you just eating the tax portion and absorbing it into the price?

[Maximus1000]

no I have a separate ad running for my state which does not have the sales tax language. plus I only fulfill like 1-2 orders max per month from my state.

I guess why I was worried is that no other competitor uses the no sales tax in their script, and I have read on google about B&M stores who have gotten in trouble in some states for advertising no sales tax.

[Lapizuli]

I wouldn't do it, personally. I don't know the legalities of advertising.

But I do know that you might get customers that see the ad that do want the object delivered in your state but aren't located in that state when they order - and I think they'd have to pay sales tax.

Also someone might report you to the state tax system if they thought (mistakenly) you were covering the sales tax, yourself, as this is not allowed in at least some states (or wasn't when I was in Internet retail). Dim possibility, but who knows?

[LizaJane]

In the USA this is state law dependant. Best bet, do a G search for "advertise no sales tax ? state" . The .gov page reguarding sales tax and advertising for your state will show up pretty high. I tried several different states, all showed different laws.

[RhinoFish]

i concur, state dependent.

though i see my competitors do it all the time, in Florida...

"Business owners may not advertise or indicate that all or any part of the sales and use tax will be absorbed or paid by the business owner. Florida law prohibits this practice."

Darn tax Nazis!

[Maximus1000]

but i am wondering, lets say I am in Nebraska. In any of my advertisements in Nebraska I would not put anything regarding sales tax. But I have campaigns that run outside of nebraska that all say "No Sales Tax Charged". In my terms and conditions however I have a section regarding sales tax saying that I charge sales tax in nebraska, but it is the individuals responsibility to pay any and all required sales tax in their local jurisdictions...

[tangor]

In general (in the USA) the merchant is required to collect sales tax from customers in THEIR STATE (CITY, etc.), or obtain a tax exempt form from the customer. Also IN GENERAL, out of state buyers are required to pay a USE TAX to THEIR STATE for any product they purchase outside of their state. Goes all the way back to Sears and Roebuck, mail order, radio/tv, etc. Buyers, however, rarely declare their purchases and pay the USE TAX THUS recurring attempts by State and Federal governments to put a tax on the Internet and/or take control of it.

My response to the OP is a simple statement such as "Nebraska residents responsible for X% Sales Tax." ergo If the buyer isn't from Nebraska...

[jsinger]

I've long wondered about these questions.

Even in zero sales tax states such as New Hampshire you don't often see sites bellowing "We Charge Absolutely NO Sales Tax." I did see a Pennsylvania apparel site doing that (there is sales tax in PA, but oddly the state doesn't tax apparel.

I too have wondered why sites in small states don't just absorb the sales tax. From quick research in G it appears to be illegal in several states but perhaps not all.

I sometimes see car dealers advertising on TV: "We'll Pay The Sales Tax!"

I'm going to ask my CPA and perhaps call our state Dept of Revenue.

[Realbrisk]

Check out shoebuy dot com they do mention No Sales tax
I think they are big enough that if its not legal.....

[jsinger]

Love the asterisk for NY (of all places). The company seems to be located in Boston.


"Enjoy no sales tax on every order*. Shoebuy pays all applicable sales tax for orders shipped in the United States. International orders are not charged sales tax at the time of purchase, but may incur taxes and duties in the customs process of the destination country. You will be responsible for paying any taxes and duties incurred in the delivery of international orders.

* Does not apply to orders shipping to New York State."