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Ecommerce sales tax works based on different laws put in place by the states that impose sales tax. These laws generally say that if you hold inventory in the state and/or reach a certain sales threshold then you are liable to collect and remit sales tax in that state.

State and local sales tax are levied on transactions between sellers and buyers. The sellers must collect and remit the sales tax. Continue reading to learn more about how state and local sales tax work.

In short, sales tax nexus is a seller's connection to a state created by certain business activities. These activities might be holding inventory in a state..

In this blog post, we will discuss how to complete the registration for a sales tax permit in the state of California. Since the landmark court case of South Dakota V. Wayfair in 2018, states have been dramatically changing laws to reflect this expansion of the authority to require businesses to collect tax – and California is no exception. If you’re not already familiar with nexus, read our blog post, “Sales Tax Nexus” before continuing.