Do you need to collect taxes for web sales? Maybe….

Have you ever noticed that some ecommerce websites charge you tax when you make an online purchase, while others don’t? The reason is because if a business has a physical presence in a state (e.g. a store or office), then it is required by law to collect state and local sales tax from customers.  However, if the business doesn’t have a “physical presence,” then collecting tax on purchases is not required.