Why am I paying Sales Tax at Zip Corvette?
On June 21, 2018, the U.S. Supreme Court’s “South Dakota v. Wayfair” decision upheld the right of South Dakota to require remote sellers to collect and remit state sales tax. The decision established the right for states to define economic thresholds for compliance of state collection requirements. Zip Products, Inc. meets these economic thresholds for several states that have passed laws/regulations and is now required by state law to collect and remit sales tax on purchases made by individuals in those states.
What states currently require Zip to collect and remit sales tax on purchases?
- New Jersey
- North Carolina
- South Carolina
Is this a new tax on purchases?
All states that have a sales tax also have a use tax. Consumers who made purchases without the collection of sales tax are required by states to file a consumer use tax. The burden for this collection has now been placed on the merchants. This is not a new tax – only a change in the way the tax is collected.
What happens to the monies Zip collects for sales tax?
The monies are collected and remitted to the state and/or locality based on the address the product was delivered to.
Why am I not charged sales tax by other out-of-state retailers?
There are several reasons why other companies may not be charging sales & use tax:
Companies may fall under the small seller exemption and do not meet the economic thresholds established by each individual state;
Companies are not adhering to the state tax laws and/or guidelines passed by individual states. When this is the case, individuals are required to submit “Use Tax” for the purchase.
What if I am a reseller of goods and services within a state? How do I become exempt from sales tax on purchases from Zip?
Zip must have the appropriate state Sales Tax Exemption Certificate on file. Certificates can be sent via fax or mail to the contact information below. To email your certificate, click the "send us an email" link and include your business information in the comments section of the form. A representative will contact you back within 1-2 days with the appropriate email address to send the certificate to.
8067 Fast Lane
Mechanicsville, VA 23111
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