# Online Sales and Use Tax- Virginia Based LLC



## burtco (Feb 24, 2006)

I am starting a web-based online sales only tshirt site and am very much confused as to whether I have to pay sales and use tax for sales outside my state of Virginia. If I do not pay sales tax, do I claim this income? I am a Virginia based LLC doing online sales only and do not have a storefront. I do recognize that for any purchases made to VA residents, I must charge 5% sales tax, but I had planned on eating this cost to stay competitive.

Can someone please set the record straight!


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## allhamps (Mar 15, 2007)

Call the office where you obtained your Sales & Use Tax license, they will know. I am in MD and I do not collect or pay STATE taxes on purchases through my online store for ANY state other than MD. It is of course income for your federal return.


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## greyhorsewoman (Jul 19, 2007)

Generally speaking, you do not have to collect sales tax on sales made out of state.

*Use tax* is for you to pay Virginia sales tax on purchases _you make out of state that you were not charged sales tax for_. 

In other words, we are all SUPPOSED to pay sales tax on all purchases, in or out of state.


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