Repost from Avalara Drop shipping can be a big boon for online sellers, especially small businesses that don’t have the funds or space to stock up
For many companies selling online, figuring out where to collect and remit sales tax requires the expertise and bandwidth of the Amazon legal department. Given that most companies don’t have access to those kinds of resources, this quick list will help determine whether you’re overlooking sales tax obligations.
1. Drop shipping
In some states, use of an in-state third-party shipper by an out of state retailer can trigger a sales tax obligation. In California, New York, Texas, and Florida for example, if a drop shipper delivers goods on your behalf, you could be obligated to collect tax.