Understanding Sales Tax Collection at Willow and Wine USA

Why Willow and Wine Collects Sales Tax in California Only

At Willow and Wine USA, we are committed to providing transparency and clarity in all our business practices. One of the questions we often receive from our customers is about our sales tax policy—specifically, why we only collect sales tax on orders shipped to California. We want to clarify this policy and ensure that you understand how it works.

Sales Tax and Physical Presence Nexus: A Brief Overview

Sales tax laws in the United States vary by state, and these laws determine when a business is required to collect and remit sales tax. There are two primary ways that a business might be required to collect sales tax:

  1. Physical Presence Nexus: If a business has a physical presence in a state, such as a store, warehouse, or office, it must collect sales tax on sales to customers in that state. This rule applies regardless of the volume of sales.
  2. Economic Nexus: If a business exceeds certain sales or transaction thresholds in a state, it must collect sales tax in that state even if it has no physical presence there. This concept became prominent after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc.

Willow and Wine’s Sales Tax Policy

California Sales Tax Collection

  • Why We Collect Sales Tax in California: Willow and Wine USA is required to collect sales tax on orders shipped to California because our products are stored and shipped from within the state. This creates a physical presence nexus, which means that all sales to California residents are subject to California sales tax, regardless of our total sales volume.
  • Sales Tax Rate: The applicable sales tax rate will be calculated at checkout based on your shipping address in California. This ensures compliance with California state law and provides transparency in your final purchase cost.

No Sales Tax in Other States

  • Why No Sales Tax Outside California? As our business operations and inventory are based in California, we do not have a physical presence in other states. Additionally, our sales volume in other states remains below the economic nexus thresholds that would require us to collect sales tax. Therefore, customers outside California do not need to pay sales tax on their purchases from Willow and Wine USA.

Legitimacy of Our Approach

We understand that some customers might be concerned about the legitimacy of our tax collection practices. Rest assured, our approach complies with state and federal tax laws. We continually monitor our sales and operations to ensure compliance with the evolving tax regulations.

Additional Resources

For more information about sales tax laws and economic nexus, you can visit the following government websites:

Commitment to Transparency

Willow and Wine USA is committed to maintaining transparency in all our business practices. We want you to feel confident shopping with us, knowing that we comply with all relevant tax laws. If our sales or operations in other states change in a way that affects our tax collection responsibilities, we will update our policy accordingly and notify our customers.

Should you have any questions or concerns about our sales tax policy, please feel free to reach out to our customer service team. We are here to help!

Thank you for choosing Willow and Wine USA. We appreciate your business and look forward to serving you.