Should taxes be collected on a transaction if we are shipping the product to a holding warehouse?

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Overview

You would like to know if you should be collecting taxes on a transaction that you are shipping the product to a holding warehouse and then another party will send the product to its end location.

Environment

Avalara AvaTax

Resolution

Please speak with the department of revenue for the state involved to find out what their ruling on the subject.

Note: AvaTax will calculate taxes based on the ship to address that is on the invoice.