Control whether product is taxable on a Product or Manufacturer level

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Trevor Gonzales

• February 10, 2020 23:22
• Edited

We are a B2B distributor that drop ships nearly 90% of our products online which are mixed products that ship from different vendors or manufacturers. For example, some vendors tax Alabama while other don't.

With new internet tax laws, and some vendors filing and collecting tax differently, it would be nice to specify if an item is taxable based on state at a product level.

Hoping for some Up Votes on this. Our previous platform handled taxes this way and was a tremendous help - see example image attached

 

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  Joshua Artman

  • February 10, 2020 22:15

  AmeriCommerce does support setting a product as non-taxable, just not a (dropship) warehouse. 

  You might want to do some research on the collection of sales tax under the new laws, from what our sales tax specialist relayed to us, with the new internet tax laws, the laws require that we the seller collect and remit taxes based upon whether we have nexus in any given state, not the drop shipping supplier/manufacturer warehouse.  We provided our drop shipper with a resale certificate for our business and then they do not charge us sales tax for the order.  All the responsibility of collecting and remitting the sales tax is based upon our sales volumes as the seller to any given state.

  All this sales tax stuff, especially across state lines makes my head spin, just trying to relay how it was explained to us.

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  Trevor Gonzales

  • February 10, 2020 23:19

  Yea its tricky all right. We have vendors who have a nexus and negotiated tax agreement with certain states. Then we have some who will accept our customers exemption while others won't to the same state. Then there is sales volume where you don't have to report taxes unless you hit a particular sales volume. Its a headache. Be tough trying to tell a customer in WY for example that yesterday he wasn't charged tax because we didn't hit tax volume, but today you have to pay it! haha how the states expect us to manage that is unknown to me - You brought something up that will make me have to rephrase my question though - thanks Joshua!

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