How to determine Nexus in Dropshipping:
In a drop shipping setting, just keep in mind that there are 3 players:
1. Seller
2. Dropshipper (distributor)
3. Customer
The general rule: Sales tax is collected at the end-state of the sale, where the customer resides.
Note: If the Dropshipper has Nexus, but the Seller does not, then, the seller does not charge sales tax to its customers. *The Dropshipper would charge the seller sales tax, unless, the seller has a resale certificate.
How to determine Nexus in Dropshipping
| Dropshipper has Nexus | Dropshipper does NOT have Nexus | |
|---|---|---|
| Seller has Nexus |
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| Seller does NOT have Nexus |
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How to determine Nexus in Dropshipping
Georgia Sales Tax
Tennessee Sales Tax
Texas Sales Tax
Illinois Sales Tax