The way it works is as follows:
A vendor lists an item on a website.
When a customer makes a purchase, the customer pays the main site. The vendor then ships out the item. The main site then pay the vendor the value of the item minus a percentage.
So how does sales tax work: Is it like the vendor is selling it directly,so he collects tax in his state, or is it like the main site is buying it from him at wholesale and then selling it, and then the tax is collected based on the main site?
Thanks
A vendor lists an item on a website.
When a customer makes a purchase, the customer pays the main site. The vendor then ships out the item. The main site then pay the vendor the value of the item minus a percentage.
So how does sales tax work: Is it like the vendor is selling it directly,so he collects tax in his state, or is it like the main site is buying it from him at wholesale and then selling it, and then the tax is collected based on the main site?
Thanks