This post seems to imply that we're considering a special Internet tax here. Last I heard, the proposed bill was simply about removing the special exemption Internet and mail order purchases currently enjoy. Since when is there an additional, special Internet tax being proposed?
Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
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Re: Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
#42I must have missed the memo. Why are we ranting and raving about collecting sales tax on internet purchases? Is there some other internet tax I'm not aware of?
Yes, the "internet sales tax bill" (marketplace fairness act) passed the Senate this week. It has White House support, so only needs to pass the House to become law. A summary: http://www.dangrossman.info/2013/04/24/what-startups-need-to...
What's bad about it?
Re: Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
#43Is the Internet tax on goods only? (This article speaks as if it is on services as well.)
The bill allows states to force out-of-state retailers to collect their sales tax, rather than requiring the end-customers report and pay them with a use tax return. Each state will still set its own classes of taxable goods, and services are already taxed in many states.
Re: Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
#44EasyDNS.. the company that closed my company's paid account over a month before the term ended because I informed them we didn't want to renew. If they think paying a modest sales tax is going to offset their terrible service, they are dreaming.
Re: Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
#45Earlier quoted context omitted.
Yes, the "internet sales tax bill" (marketplace fairness act) passed the Senate this week. It has White House support, so only needs to pass the House to become law. A summary: http://www.dangrossman.info/2013/04/24/what-startups-need-to...
What's bad about it?
I don't have time to read 50 states' tax codes, file 50 tax returns and potentially be audited 50 times a year. What small business does?
Re: Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
#46Earlier quoted context omitted.
Europe is already taxing all internet purchases made within it's borders. I was buying some shoes in UK and only after I assured the seller that Ukraine was outside of EU was the tax taken off the price.
But that's because of the internal market, that isn't some specific internet tax, is it?
The 2003 VAT on e-Services laws are: they are a modification of the general VAT laws to better level the playing field between companies inside and outside of the EU for digital goods downloaded over the Internet. Before, companies in the EU had to collect VAT on all purchases (including from people in other countries), and companies in other countries did not have a realistic way to collect VAT from countries in the EU. Since the inception of that law, companies in the EU do not have to collect taxes on sales to other countries, and companies from all countries must collect VAT for sales to customers in the EU. They established a simplified registration process by which companies can register in a single jurisdiction and then remit collected VAT in a single currency, accompanied with a breakdown of which countries are owed which amounts. (None of this applies to physical goods, nor would such things be necessary, because those are taxed at the point of collection based on the declarations goods stated on the import/export documentation.)
Re: Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
#47I am slightly bemused by the fact that the US - which in Europe is often seen as very lax on taxes - is doing this and it is not even being considered in Europe. That might change, sure, but Europeans tend to like taxing things. And if this haven't even made a consideration among European lawmakers, just how far from the pack have the US lawmakers gone?
The author and you are confused. There is no internet specific tax being discussed in the US. The "Internet tax" bill just allows states to require companies to collect state sales tax when they sell an item to someone in the state. This is the same tax which is collected by brick and mortar stores within the state. Currently if I buy items online each year when filing my state taxes by law I must declare the value o…
So as a hypothetical business owner in Washington who sells things online, I have to keep track of the tax laws of the other 49 states, and remit 50 checks quarterly (or maybe annually)?
Re: Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
#48In EU internet purchases were always taxed, and yet online-only competitors still manage to compete with brick-and-mortar stores very successfully. So this article is quite bollocks.
Everything was taxed, equally (with a few exceptions like food). No wasted time figuring out which tax to use, keeping up with tax changes, arguing why the brick & mortar store has a 5% rate while the online shop has 10%, etc. Over the pond it's the same for everybody. Doesn't seem so in the US.
I think you misunderstand. The proposed changes are simply to remove the tax exemption. State sales tax will apply to internet purchases, just like they do for mail order. The confusion comes from the weird sales tax systems in place. I live in Colorado where the sales tax rates change according to a maze of Byzantine laws.
Re: Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
#49In EU internet purchases were always taxed, and yet online-only competitors still manage to compete with brick-and-mortar stores very successfully. So this article is quite bollocks.
With one additional part: VAT is paid on imports (on any package over a certain value).
Correct me if I'm wrong, but an import duty was not part of the sales tax bill.
Re: Go ahead, pass the Internet tax. Your (foreign) competitors thank you.
#50Earlier quoted context omitted.
The author and you are confused. There is no internet specific tax being discussed in the US. The "Internet tax" bill just allows states to require companies to collect state sales tax when they sell an item to someone in the state. This is the same tax which is collected by brick and mortar stores within the state. Currently if I buy items online each year when filing my state taxes by law I must declare the value o…
So as a hypothetical business owner in Washington who sells things online, I have to keep track of the tax laws of the other 49 states, and remit 50 checks quarterly (or maybe annually)?
Yes, that's what's happening if this bill passes in the House.