When Offering Digital Products In A Shopping Cart, Are You Required To Charge Tax On That Product?

Well, this is a great question and it is actually a question for your certified professional accountant because each state is different, from my understanding. In my state of Georgia, we don’t have to. Legally we are not required to charge any tax. I know this actually sounds kind of crazy. Now remember, I’m not a tax atto
ey and I’m not a CPA. I’m not any of those things, so let me state that for the record. I’m very sure we don’t pay tax on digital products for anybody that orders outside of our state. However, you’ve really got to talk to your CPA or an accountant or talk to somebody specifically about that. Ask somebody locally in your state because I don’t know what the rules and regulations are for any other jurisdiction. However, I know for a fact that I don’t charge any taxes on anything. We don’t get charged for any tax unless they’re from our state. If they’re from our state, we have to pay taxes on those. I’m pretty sure that’s how it works.
The worst thing you could ever do is ask an internet marketer that lives in your state. They might be doing it wrong.
As an aside, the other day I was signing and sending out 78 affiliate checks that totalled well over $100,000 in affiliate commissions. One thing I was shocked to see is the lack of corporations out there. I was like, “Oh my gosh, I cannot believe that so many people don’t even have corporations,” and these are big-name internet marketers. To me this makes absolutely no sense at all.
I’d be very careful because one thing I know is, a lot of people get into this business and they do not know how to run a real business. What happens is they end up making a lot of money, but I know for a fact, they get killed in taxes. I have friends telling me how much money they have to pay in taxes. So, you’ve got to be careful. You can learn to make money from them, but some of these guys you just want to be very careful with. They don’t know how to run real businesses, they’re getting killed in taxes and they may pass on bad information to you. I pity anyone in this situation, quite honestly, because that’s like the key to making money is saving your money, too, and not spending it all.