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Charging Sales Tax on Out-of-State Orders

For now, Congress won't ask you to worry about the issue. But the honeymoon might not last forever.

This story appears in the August 2002 issue of HomeOfficeMag.com.

Q: I just received a huge order from a company in California. I am in Pennsylvania. Do I charge this company sales tax on their order? My business is mostly Internet-based.

A: Until at least October 2003, sellers like you are not responsible for collecting sales tax from buyers in other states in which they do not have a physical presence, thanks to the Internet Tax Freedom Act. A physical presence means having an office, a factory, a store or a warehouse in that state.

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