Online shopping offers the advantages of purchasing custom items from the comfort of your own home. You may be wondering why it is possible to save the tax when you purchase online? Here is the answer:
When to Collect U.S. Sales Tax Online
If your business has a physical presence in a state, such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers. If you do not have a presence in a particular state, you are not required to collect sales taxes.
This rule is based on a 1992 Supreme Court ruling in which the justices ruled that states cannot require mail-order businesses, and by extension, online retailers to collect sales tax unless they have a physical presence in the state.
We are a drop-ship company. Our products are custom made and shipped directly from our manufacturer. Thus, we do not have inventory in a particular state and are able to ship products without tax (U.S. A. only). Please contact us if you have any questions.