321–330 of 613 posts
Any idea how this will affect SaaS folks with no physical products?
[1] https://blog.taxjar.com/saas-sales-tax/ [2] https://blog.taxjar.com/sales-tax-digital-products/
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…
See [1]. Sales tax as a service is available from seven different providers. Shopping cart integration is available. You pay one bill, they handle the rest. [1] http://www.streamlinedsalestax.org/
Yet another tenuous stretching of nexus by lawyers who have little interest in how technology works, but do have every incentive to justify increasing their own scope. This is the equivalent of telling New Hampshire stores that they're responsible for collecting Massachusetts sales tax for people coming over the border to shop. A business collecting taxes for the state they are in, even for orders shipped out of stat…
>holds the state governments to a modicum of honesty. Coffee almost came out my nose. Governments in southern New England are only regarded as legitimate because people in MA and CT bury their heads in the sand and RI compares itself to NYC and Chicago (that's not to say that useful or good programs don't exist within these governments). >This is the equivalent of telling New Hampshire stores that they're responsible…
The bigger picture is that if one wants to live close to family and friends in New England, they're still able to move and pay 0% sales and state earned income taxes. Whereas if one wants to live close to family and friends in CA, they're completely over the barrel.
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Sounds like a business opportunity.
Avalara just went public and is benefitting from the ruling: https://www.geekwire.com/2018/avalara-stock-soars-following-...
I think eBay and Etsy side hustle sellers especially should be worried. This helps large internet retailers like Amazon. They have the systems in place to charge and remit sales tax for 3rd party merchants, they've just been waiting until this ruling happened.
Something like ten years ago now, Washington State changed their sales tax requirements in a way that required the seller to look up the four-digit rate code of the buyer, both for determining the rate to charge and later for remitting to the state. The quarterly file they provide with this information is ~150000 rows. Prior to that date, you just reported for the jurisdiction in which the business was registered. Be…
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suddenly the EU VAT system looks awesome :-)
The US system of local sales taxes doesn't look awesome ever. If there were one economic reform I would push in the US it would be advertised price is final price (i.e. if you say "I'm selling this for $9.99" then that's all you pay, and the taxes are all inclusive) this would pretty much force underlying tax reform as businesses lost their shit having to deal with the insanity. Note that the disaster area that is US…
Earlier quoted context omitted.
suddenly the EU VAT system looks awesome :-)
The US system of local sales taxes doesn't look awesome ever. If there were one economic reform I would push in the US it would be advertised price is final price (i.e. if you say "I'm selling this for $9.99" then that's all you pay, and the taxes are all inclusive) this would pretty much force underlying tax reform as businesses lost their shit having to deal with the insanity. Note that the disaster area that is US…
Earlier quoted context omitted.
If the business isn't paying the tax, then I'm sure the people paying the tax can pay the tax themselves. No need to add a middleman.
They tried that for 10 years and it didn't work. Very few people pay use tax like they should. But it wasn't cost effective to enforce every individual offender. So now they're trying something different.
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.
You can use a sales tax API with Stripe [2] to calculate sales tax before processing the payment. From there, you'll have to remit the sales tax to the state manually or use sales tax compliance software like TaxJar or Avalara.
[1] https://blog.taxjar.com/saas-sales-tax/ [2] https://developers.taxjar.com/blog/handling-sales-tax-with-s...