Get Expert Support With Drop Shipping Sales Tax

We navigate the complexities of sales tax for drop shipping businesses to keep you out of hot water.

Speak to us and get your sales tax sorted out.

We’ll ensure you’re selling compliantly across the US.

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What is Drop Shipping?

Drop shipping is an eCommerce model where businesses don’t stock inventory but rather purchase items from third-party suppliers who ship directly to customers. This streamlines logistics, cuts overhead costs, and allows retailers to offer diverse products without hefty inventory investments.

How Does Sales Tax for Drop Shipping Work?

Drop shipping presents a unique set of challenges when it comes to sales tax. Instead of a typical buyer-seller dynamic, there are three parties involved in a sale. So how do you make sure items are only taxed once?

Usually, the end customer pays sales tax and the drop shipper provides a resale certificate or exemption certificate to the supplier. But the rules vary depending on which states you have nexus in.

Our team of experts can help you navigate these complexities with confidence. Benefit from our comprehensive knowledge of sales tax drop ship rules by state and let us automate your entire filing process.

1

Have a Drop Shipping Sales Tax Manager on Call

2

Receive full onboarding and registration support

3

Automate your filings and certificate management

Connect your system to Yonda with prebuilt integrations

Use some of our easy integrations to calculate tax rates at checkout.

Drop Shipping Sales Tax Nexus

Drop shipping businesses may have sales tax nexus in one or more states. That means you’re physically or economically connected to the state and obligated to collect tax. Our team can help you understand the various factors that determine nexus for drop shipping operations.

We use innovative tech and human expertise to ensure you’re compliant with the relevant state tax regulations and minimize your exposure to potential tax liabilities.

Drop Ship Sales Tax Rules – State By State

Each state has its own set of regulations for drop shipping sales tax. Our experts are well-versed in the rules of each state. We can provide tailored guidance on compliance requirements and potential exemptions, whether you provide drop shipping as a supplier or use it as an eCommerce business.

 

How it Works When You Offer Drop Shipping as a Supplier

As a drop shipping supplier, ensuring compliance with sales tax regulations is paramount to the success and reputation of your business. 

We help you understand your sales tax obligations in the states where you have nexus. Our experts can register your business for sales tax permits in relevant jurisdictions and keep you informed about changes in state tax laws.

You’ll need to collect a valid and accurately completed exemption form or resale certificate from all your retailers. We can manage your certificates and identify potential problems.

Gain a Dedicated Drop Shipping Sales Tax Wingman

We keep up with the latest requirements in each state so you don’t have to. Our drop shipping sales tax service includes a dedicated sales tax manager, an automated filing system, and resale & exemption certificate management.

Contact us today to learn more about how we can help you achieve full tax compliance.

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