Hello E-commerce gurus, I have noticed a lot of sites make a difference between the "home" state where a company operates. Namely, if a transaction is invoked by a "resident" user (at least by his or her signup account) the local state taxes are levied. On the other hand if the "user" is: "out of state" then no taxes are levied. Can anyone explain how I may view the statute or law that states this situation? Or is their a definitive website article somewhere that outlines and details the "internet" tax laws? The question I am most interested in: what are the tax responsibilities and/or differences between a website that is selling a product and a website that is selling a "service". Thanx.
Latest News: (loading..)
0
5 replies to this topic
#3
Posted 28 July 2003, 22:30
As always you want to consult a tax advisor for exact details but as it stands in the U.S. (may change at any moment!!) you are only required to collect taxes if you have a "Brick and Mortar" retail/warehousing operations, and then you only collect taxes for orders placed in the state where you have the "Brick and Mortar" operations. If you operate wholey on the internet then you are not required to collect taxes.
Hope this is helpful!
Hope this is helpful!
#4
Posted 04 August 2003, 20:58
Hi All,
I have a web reselling business for musicians. We are offering the the ability to have their CD on our store. When someone from their site wants to buy their CD they come to our site and purchase it through OSC. What do we do in this case? We collect the money for the artist and then pay them and then the artist drops ships the CD to their buyer. Do I have to deal with the tax or can I tell the Artist to deal with it.
Thanks,
Steve Lewis
I have a web reselling business for musicians. We are offering the the ability to have their CD on our store. When someone from their site wants to buy their CD they come to our site and purchase it through OSC. What do we do in this case? We collect the money for the artist and then pay them and then the artist drops ships the CD to their buyer. Do I have to deal with the tax or can I tell the Artist to deal with it.
Thanks,
Steve Lewis
#5
Posted 22 September 2003, 20:45
stevelewis, on Aug 4 2003, 08:58 PM, said:
Hi All,
I have a web reselling business for musicians. We are offering the the ability to have their CD on our store. When someone from their site wants to buy their CD they come to our site and purchase it through OSC. What do we do in this case? We collect the money for the artist and then pay them and then the artist drops ships the CD to their buyer. Do I have to deal with the tax or can I tell the Artist to deal with it.
Thanks,
Steve Lewis
I have a web reselling business for musicians. We are offering the the ability to have their CD on our store. When someone from their site wants to buy their CD they come to our site and purchase it through OSC. What do we do in this case? We collect the money for the artist and then pay them and then the artist drops ships the CD to their buyer. Do I have to deal with the tax or can I tell the Artist to deal with it.
Thanks,
Steve Lewis
As pointed out earlier you will want to contact your state's department of revenue (or other department that deals with taxing).
I am not a lawyer but in Missouri your tax liablity is based on where the transfer of title takes place. Your state may be similar. Any sales shipped In state would prbably result in tax and out of state probably wouldn't.
In your example you are probably going to be liable for the tax collection since your store is selling it and the Artist is the "supplier".
Bryan
#6
Posted 22 September 2003, 21:43
Normally it is the consummer that has to pay tax (even from out of state/province/country) How ever you don't have to collect that tax - the consumer "should" remit the tax directly to the tax authority himself (Yea right as if people ACUALLY do that.....)
Weather you have a Brick and Morter or viurtual store - you may be libal for ANY shipment sent from and delivered within the same state/province - even if that is not where you are. I am in Canada and had to pay a supplier California tax (was about $100) for goods drop ship to another Califorina company (might have been cheaper to ship from Canada direct - we were tring to get it there cheaper and quicker - well it was quicker not cheaper....)
Weather you have a Brick and Morter or viurtual store - you may be libal for ANY shipment sent from and delivered within the same state/province - even if that is not where you are. I am in Canada and had to pay a supplier California tax (was about $100) for goods drop ship to another Califorina company (might have been cheaper to ship from Canada direct - we were tring to get it there cheaper and quicker - well it was quicker not cheaper....)
