4 ms·

Wrong. If you live in a state without income tax, buy a product from a company in the same state, and then ship the product to your friend in Texas, you have to

• jedberg 8y ago
  That's because you asked the company to ship it there. That's the company collecting tax on your friend's behalf. If you buy it and ship it to yourself, and then ship it to your friend, there would be no tax, because then you bought it and they have no way of knowing it is going to your friend. Technically, your friend had to pay use tax when they got it from you. But they probably didn't. Which is why they want the retailer to collect the tax for them.
  • txsh 8y ago
    No. We’re talking about sales tax, not gift tax.