microsoft accounting professional



I run an e commerce business. I only charge tax if the product is ship to
the same state which the company resides. So under the inventory where it
states taxable item. I am only given 2 options: taxable or non taxable.
What do I do in a situation like this? Thanks in advance!



Chris Anderson

I don't know about the US version of SBA, but in the UK tax is based on a
"matrix" dependant on both customer and product.

i.e. normally you would state that the product is taxable, but the customer
is not - in which case tax will not be applied.
This allows the same (taxable) product to go to a same-state customer and
include tax, and to a tax exempt customer and not include tax.

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