My business has a physical presence in 5 states. A new internet division will sell online from only 1 warehouse in MO. Will sales tax need to be charged when shipping orders to any of the 4 other physical presence states? If so, what state tax is required, the ship-from or destination state?

ANSWER

The BIDaWIZ Team's Answer:

Generally speaking, if you have physical presences in those 4 other states that you are shipping to, then you have tax nexus and are required to register as a business with that state subject to sales taxes. You would be charging sales tax based on the destination state in which you have a physical presence in.