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Thread: Internet Sales Tax in the US

  1. #1
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    Internet Sales Tax in the US

    Online Sales Tax Bill Passes Senate

    How are internet sales taxes imposed in your country?

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    Senior Member Snakebite911's Avatar
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    Quote Originally Posted by Dupree View Post
    Online Sales Tax Bill Passes Senate

    How are internet sales taxes imposed in your country?
    Depends. Physical items are taxed, (VAT 25%) on the sale if the company is Norwegian, and customs charge the same 25% on any items sent from abroad, except if the value of the item is less than 200 NOK.

    Immaterial goods have been a grey area, but lately large retailers have made agreements with Norwegian tax authorities to charge the VAT direct on the sale. Any purchase by me on Amazon US (Kindle) gets 25% added as long as I am registered with Norway Address and Norwegian credit card........

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    Senior Member marc26's Avatar
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    i remember when i lived in Hoboken
    one of the best electronics store in US, J&R Music was in Manhattan
    i could go in the store and have them deliver right over the tunnel too NJ and not have to pay tax

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    Super Moderator LivinLOS's Avatar
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    Another layer of reporting, of declarations, of enforcement, customer tracking etc..

    and yet simply book it to a paypal account at an address outside the location and bingo.. Avoided.

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    pretty sure in aus, if the total purchase is less than $1000aud there is no tax.
    This makes huge problems for the domestic retail market, especially with the strength of AUD V USD, cheaper to buy online, but not good for the country.

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    Senior Member marc26's Avatar
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    Quote Originally Posted by LivinLOS View Post
    Another layer of reporting, of declarations, of enforcement, customer tracking etc..

    and yet simply book it to a paypal account at an address outside the location and bingo.. Avoided.
    you really are a fruit loop dude
    it simply comes down to a tax issue
    something i am very surprised wasn't locked down sooner

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    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by marc26 View Post
    you really are a fruit loop dude
    it simply comes down to a tax issue
    something i am very surprised wasn't locked down sooner
    And it just shifts more companies off shore.. and more jobs out of the country.

    Exactly like you buying your electronics over the bridge, now they will ship from outside the country.

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    We have "Local" companies offering goods online but if you read the fine print it says (Goods delivered ex Hong Kong), to avoid tax at source and shift tax responsibility to the buyer.
    Price competitiveness then has a ten percent (Tax) leverage between local and OS suppliers. No paperwork = No tax break for business on the tax too. The <$1,000 per item exclusion is there because it costs too much in additional admin to offset the amount govt would collect.

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    Senior Member marc26's Avatar
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    Quote Originally Posted by LivinLOS View Post
    And it just shifts more companies off shore.. and more jobs out of the country.

    Exactly like you buying your electronics over the bridge, now they will ship from outside the country.
    pretty easy to tax that
    if i buy something tax free in US and get it shipped to Canada i will get banged when it gets delivered

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    Senior Member Pablo's Avatar
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    "Read my lips...no more taxes"!

  11. #11
    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by marc26 View Post
    pretty easy to tax that
    if i buy something tax free in US and get it shipped to Canada i will get banged when it gets delivered
    OK but then for the same price the company still has no compliance load, no declarations, no accounting, no processing..

    And how does it work with local distribution centers ?? Of overseas companies.

    Then what happens when the 'site' is simply a margin added to 3rd party merchants.. Who controls the 3rd party merchants, does it mean you need to do tax when selling on ebay ??

    This is exactly the story of play.com, probably one of the largest UK DVD retailers.. They set up in Channel islands, made a fortune, the government tries to close the low value import rules so they simply transition to being a marketplace, and let suppliers meet sellers and the same thing works.

    Its not just the tax (god know they have to pay for these bread, circuses, wars, and deficits somehow.. If people keep voting for it you will sure have to pay for it) but its the regulatroy compliance factor.. You have to track every purchaser, every location, shipping address v card address v registration address.. Theres the enforcement, the legal code, the hassle..

    It just gums up the wheels of commerce, slows down an economy, and makes it less competitive.. In a time when it needs all it can get.

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    So you should pay no tax at all?

    Who pays for the roads your tax free goods are delivered on?

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    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by Evilbaz View Post
    So you should pay no tax at all?

    Who pays for the roads your tax free goods are delivered on?
    Taxes should be simplified.. The burden of tax code should be made as streamlined as possible for small business..

    This is a logistical nightmare of a code.. On a mail order industry that is one of the easiest to up and leave. .

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    Quote Originally Posted by LivinLOS View Post
    Taxes should be simplified.. The burden of tax code should be made as streamlined as possible for small business..

    This is a logistical nightmare of a code.. On a mail order industry that is one of the easiest to up and leave. .
    Ermmm...no it's not.

    What's so hard about noting the state of purchase, applying the tax to the invoice and holding the tax in escrow for a quarterly filing. It can all be done electroniocally. Brick and mortoar have been doing it manually for centuries.

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    Super Moderator LivinLOS's Avatar
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    Define purchase.. So I (UK credit card.. Thai account address.. USA postal address) buy an item.. Who taxes me ??

    How about I am buying a gift, so what address counts ??

    This happens all the time.. If I buy skype credit on my visa card they add 20%, if I buy skype credit on my paypal account, its 0..

    What amount of sales needs to do all this tracking.. How much can I sell on ebay now ??

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    Senior Member marc26's Avatar
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    Quote Originally Posted by LivinLOS View Post
    Define purchase.. So I (UK credit card.. Thai account address.. USA postal address) buy an item.. Who taxes me ??

    How about I am buying a gift, so what address counts ??

    This happens all the time.. If I buy skype credit on my visa card they add 20%, if I buy skype credit on my paypal account, its 0..

    What amount of sales needs to do all this tracking.. How much can I sell on ebay now ??
    there is a set sales tax for each state and as snakebite points out and i did there is a set sales tax for each country

    so why can't there be a set sales tax for online purchases
    doesn't matter where it is going

  17. #17
    Super Moderator LivinLOS's Avatar
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    Of course it matters where its going.. The US has a right to tax me does it ??

  18. #18
    Senior Member marc26's Avatar
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    Quote Originally Posted by LivinLOS View Post
    Of course it matters where its going.. The US has a right to tax me does it ??
    you want to believe that an online store exists in neverworld and that is simply not the case
    it has a footprint somewhere
    believe me, i don't want to pay taxes and if i don't have to, i will gladly not volunteer
    i am just pointing out the fairness and can see the point of the physical retail stores, they are at a disadvantage

    as EB pointed out, your deliveries that you want tax free are using municipalities that are paid for in taxes
    you want to live in a neverworld that you do your thing and have the govt leave you alone, but you are using tax benefitted systems everyday of your life
    just because you don't "tap into the system" doesn't mean you aren't using resources that are provided through taxation

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    Senior Member tnlawyer's Avatar
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    Quote Originally Posted by marc26 View Post
    your deliveries that you want tax free are using municipalities that are paid for in taxes
    Do you mean the roads? The way I understand it (and I could be wrong) is that if someone in California orders something online and it's shipped to him from New York, he would be charged California sales tax and the money would go to the state of California. How does that benefit New York or any of the states in between whose roads are used?

  20. #20
    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by marc26 View Post
    you want to believe that an online store exists in neverworld and that is simply not the case
    it has a footprint somewhere
    And my point is.. You have just made it undesirable to have that footprint inside the USA.. So what it will do is, shift that footprint outside the USA.

    These are not bricks and mortar that need foot traffic.. They can be located anywhere they please.

    This isnt about my desire to have cheaper goods.. This is about ever increasing tax codes, ever less business friendly locations, ever more government interference in trade, and what that does to the health and fluidity of an economy.

    Next will be trade tarriffs (well those sneaky mexicans dont charge sales tax, and all our retail jobs are going to mexican distribution centers.. Tax those imports).. Its a well worn route, done by economies in decline over and over again.
    Last edited by LivinLOS; 10th May 2013 at 07:15.

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