I should have included sales tax advice to sellers in other states as well as California. I am just now involved in the reporting and remitting of the sales tax I collected from my Etsy sales. It finally dawned on me that someone outside of California might just skip over this post. The advice that I wrote applies to all US states that have a sales tax program. Some don’t. In doing research for an ebook on this subject I discovered that each state has different, sometimes complex requirements. In California each city, or county, sets a sales tax that applies only to that area. Therefore, each sales tax on my product has to be determined by the city, or county where it is shipped in California, not just a general tax for the entire state. Did I mention complicated?
However, if you are a seller you must research the sales tax laws in your own state. Most states have a phone number for access to advice. I called my Bureau of Equalization and they were very helpful. They helped me determine how to file my return which must be done this month. If you are a seller please find out how to collect and remit sales tax for the state in which you have shipped a product. It is illegal to avoid collecting this tax and you could be fined a much larger fee than the original amount of the tax. There could be penalties as well.
I have begun an Excel form which will contain all the information that I need to file my return next year. I suggest you do the same if you haven’t already.