Sales Tax depends on location where legal ownership of product transfers to buyer from seller?

[Eric Lehti]

Sales Tax depends on location where legal ownership of product transfers to buyer from seller?

We are just now beginning to sell a few products to taxable customers and have a question.

Legal title to our products transfers to the buyer when the product leaves our warehouse in Tulsa, Oklahoma. I believe this legal title transfer means that customers should be charged our Tulsa Oklahoma taxes, not the sales taxes at the location where the truckload is shipping to (which could be anywhere in the United States).

So all taxable customers will have Oklahoma tax rates in their F0301 customer master, the F4201 sales header, and F4211 sales detail, which are linked to F4008 (unless we use Vertex software), no matter where that customer is located in the U.S.

Right? Wrong?

 

[Fred Hargett]

Re: Sales Tax depends on location where legal ownership of product transfers to buyer from seller?

Ha Ha Ha,,, The tax authority from the great state of Michigan would have a different take on "transfer of title" and whose tax you need to collect.

Your only out would be if the orders are internet orders. Get up and running on web enablement and customer self service!!!!

 

[Eric Lehti]

Re: Sales Tax depends on location where legal ownership of product transfers to buyer from seller?

Thank you Fred, for correcting me. If the seller in Oklahoma ships to a taxable customer in Michigan, the seller must charge and collect Michigan sales taxes and remit those to Michigan tax authorities. As I feel quite sheepish about this thread, I think I will post a new thread with an accurate subject header!