Drop Shipping and Sales Tax
Drop shipping is a complex issue
Sales tax exemptions are very common in drop shipping scenarios. They’re also extremely complicated. Even the most experienced companies find it difficult to keep track of how different states determine when a drop-shipped item is considered tax-exempt.
Generally, there are three parties involved in a drop shipping relationship: the seller (who accepts the order), the supplier (who delivers the order) and the end customer.
Watch this video as Will takes us through the basics of understanding a drop shipping relationship and who is responsible for paying sales tax.