Hello, I'm in South Carolina (US) and looking to use Dodo Payments once I launch. I'm not verified yet, so this is just theoretical for now. I have three questions:
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Does Dodo provide remittance for sales taxes to the individual US states, or just country-level sales taxes (like VAT or GST)? I have seen a couple of posts about how "US Sales Tax rate is 0", which seems to imply that Dodo doesn't do sales taxes per-state.
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I were to start making sales through Dodo, will Dodo start remitting taxes to South Carolina if they are purchased in South Carolina from day 1? I've heard that taxes in most jurisdictions only begin to apply after a certain amount of sales in locations where the business is located, but I want to make sure that Dodo will remit taxes from where the business is located from day 1.
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I spoke with my state's tax office, and they said that I will need a sales tax license (which I have already), and then I would record the total amount of sales through Dodo, but then deduct all the purchases as "Sales for Resale", meaning that no sales tax would be paid for it, and Dodo will submit the sales tax to South Carolina separately. I assume most businesses will need to report their amount of sales, but then indicate that these purchases have already had sales tax paid for them (by Dodo). Is this common for your other US customers?
Thank you so much! I'm really looking to being able to scale my business globally with Dodo payments once I get closer to launch.