RE: online payments for client without merchant account?

<<
I'm not a CPA but I've built e-commerce sites, and my
understanding is that
you must charge sales tax if (1) the state your business is
located in
charges sales tax; and (2) if the person/company who purchases
tangible
goods from you receives those goods in that same state.
>>

Hello Linda,

Yes, this is true. However, the way it works (or at least with
CCnow) is that when your customer makes a purchase from your
website, they do not purchase this thing directly from you, but
from CCNow, who, at the same time, purchases this thing from you.
So CCNow acts here as a retail reseller of your products, and
technically it is them who should collect the sales tax for
Delaware residents (since CCNow is located in Delaware), but
Delaware has no sales tax.

Here is a link to their full explanation, if anybody is
interested:
http://www.ccnow.com/faq.html#tax

I'm not a CPA either, but so far I have not seen anything that
would say that this is illegal tactics.

Kasia Whiteis
mailto:kasia(at)whiteis.com
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