What to Do if Charged Sales Tax on Exempt Purchase | marketrealtime.com

Image courtesy rawpixel.com

Image courtesy rawpixel.com

Since the U.S. Supreme Court decision in Wayfair vs. South Dakota in June 2018, many sellers are now required to calculate and collect sales tax on a transaction on the basis of where the seller lives rather than where the seller is located.

Third-party marketplace facilitators such as Amazon, eBay and Etsy face enormous difficulties identifying which merchandise may be subject to sales tax and what would be the correct tax rate if it does apply. In addition to the 50 states and the District of Columbia, there are also local, county, Native American tribal and other sales taxes that may apply in some states, where the rates can vary from one jurisdiction to another. Altogether, there are approximately 10,000 potential different sales tax rates that may apply, depending on where the purchaser lives.

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