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OK, I am very new to etsy and am wondering what everyone does about state taxes. Is there a way to add it to your etsy listing? Or do you build it into your item prices?
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I believe that you can only build it into your item prices. Be sure to state in your policies that you charge the taxes within the price.
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In my case, I only need to charge residents of the state I live in (Maryland) sales tax. I don't need to charge anyone else. As I've yet to sell to anyone local, I haven't got myself sorted out yet with a sales license. Must get on that! My shop announcement and policies will show that Maryland residents have to pay tax and I'll issue a revised invoice via PayPal. I've seen other Maryland sellers do this.
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I hadn't seen this issue come up yet, and was wondering myself about taxes, I've only had a few sales, all out of state, but how do I know what states to tax and what not to, and, I am assuming there must be a minimum qualification- like if you sell under a certain amount, you wouldn't report it on your taxes?
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I applied for a seller's permit in my state of California. On PayPal, there is a setting where you set your state sales tax. I guess if a customer buys from your store and PayPal sees that customer's address the same as your state, it will automatically add the state sales tax to the invoice. In my state, there are different sales tax for each county. I was told by my Board of Equalization that I should charge 9.25% for people in my county and 8.5% for the other CA counties. So I set 9.25% as my default CA state sales tax and will have to send an updated invoice to other CA county residents.
You don't charge sales tax to people who live outside your state.