WHEN IS A BUSINESS OWNER REQUIRED TO PAY QUARTERLY TAXES?

Caveat: I’m just a student. It is best to talk with a tax professional or your taxing authority about any questions you have.

Sales tax administration varies depending on the city, county, and state. Since I don’t know where you’re from, I can’t answer your question specifically.

The federal government hasn’t historically required online retailers to collect sales taxes due to the complexities involved in keeping track of different rates for different areas. Federal legislation is currently being introduced that may require larger online retailers to collect sales tax (1). In addition, state governments are beginning to coordinate their collection efforts, such as Washington’s “destination-based” sales tax for shipped goods (2), again, mostly for larger retailers. I also seem to recall that some states require collection of sales taxes for items sold to customers within the state.

I do know that customers still owe sales and use tax on their goods, regardless of where or how they purchased them. However, it doesn’t seem to me like you are required to collect anything as of yet. Your “No Tax Due” form and your taxing authority’s website will have more specific instructions for you.

If you would owe more than $1000 federal income tax for the year at the end of any quarter you would need to file form 1040-ES with payment for that quarter. Although, that may not actually be required until your 2nd year, you should become familiar with it.