301–310 of 613 posts
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So that would be the software companies' liability. And such business practice can differentiate good ones from the bad ones. I'm seeing a new business market here even.
Nonsense. Your accountant isn't even liable if you're audited by the IRS. They're not gonna give a crap you used some rando SaaS
I have a hunch that this will, in the end, be a massive win for large retailers vs. small ones. The task of figuring out how to calculate tax for all states is more or less the same amount of work regardless of size, which means for someone like Amazon it's more or less trivial, but for a mom-and-pop store it's a major hassle.
The South Dakota tax only applies if you sell more than $100k or send more than 200 shipments, which factored into the decision: Respondents argue that “the physical presence rule has permitted start-ups and small businesses to use the Internet as a means to grow their companies and access a national market, without exposing them to the daunting complexity and business-development obstacles of nationwide sales tax…
What no one is talking about here is how this would be handled, especially for a small online sellers. There are almost 10,000 tax jurisdictions ( https://www.washingtonpost.com/blogs/fact-checker/post/mccon... ) and you're not allowed to collect sales tax unless you register for that jurisdiction. There is also a fee collected by most jurisdictions to register and most make you send in periodic reports, even if you…
What no one is talking about here is how this would be handled, especially for a small online sellers. There are almost 10,000 tax jurisdictions ( https://www.washingtonpost.com/blogs/fact-checker/post/mccon... ) and you're not allowed to collect sales tax unless you register for that jurisdiction. There is also a fee collected by most jurisdictions to register and most make you send in periodic reports, even if you…
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100k * 50 = 5M @ 2% profit margin that's 100k per year. Enough to live comfortably on, but not exactly a big money. Further, the ruling applies to all taxes and has no cutoff under 100k/year required.
I'm curious where your 2% margin came from in this estimate. From what I can tell, that number is often quoted as Amazon's profit margins, but I'm not sure smaller more-specialized online retailers necessarily need to match Amazon's low margins.
I run a little side project that sells a small software tool for $12/customer (forever, not recurring). It generates about $1200/month. Should I care about this? I use Stripe to collect payments, if it matters.
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Programming one of these for a Canadian website for provincial tax to hook into another recurring payment script, that hooked into PayPal was an annoying overhead especially when the company was bootstrapped and had like $0 revenue to even care about at that point. I would hope Stripe or people using online services like Shopify will quickly add support for everyone. But the state by state, county by county, grocery…
The support for this has been there on Shopify for quite some time. With a tool like https://www.taxjar.com/ I was able to easily pay all the state, county and city taxes in a few minutes for my wife's small online shop.
The people who define the taxation are payed by taxes, so why not require the deliverable to include a cryptographically signed algorithm? Then all the shops can have free peace of mind:
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Brick and mortar don't get to do that either, so why should online ones?
When I launch a single brick and mortar store, I have to worry about the tax jurisdiction that store is in. When I launch a single small web app, I have to worry about everything single tax jurisdiction in the country. I'm super not opposed to taxes, but I do think this is an area that the federal government should step in. If only to provide a standardized system for different jurisdictions to report their sales tax…
But I fully agree with you regarding the need for the federal government standardizing.
See my comment at https://news.ycombinator.com/item?id=17367669