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My question though is why is it up to customers to report sales tax? I've literally never done this, every retailer I've bought from has included sales tax in t
by FussyZeus 9y ago
My question though is why is it up to customers to report sales tax? I've literally never done this, every retailer I've bought from has included sales tax in the purchase price, collected it, and paid it. Why was Newegg not doing this?
- BoorishBears 9y agoAll explained very nicely here: http://www.ct.gov/drs/cwp/view.asp?A=1510&Q=270228 http://www.ct.gov/drs/cwp/view.asp?A=1510&Q=270228 It’s technically not sales tax, but “use tax” in this case. For years tons of online retailers didn’t charge sales tax with purchases, all of those purchases were subject to use tax. Even Amazon (or was it eBay?) wasn’t charging tax in CT a few years back iirc. There are lots of various reasonings in why they don’t collect depending on how charitable you are to the retailers, ranging from “We get to advertise cheaper prices” to “We didn’t want to manage taxes in 50 states”
- FussyZeus 9y agoHuh, weird. Glad I don't live there. Thanks for the clarification.
- BoorishBears 9y ago> When the states first enacted their sales taxes, the tax was imposed only on in-state sales. There was no use tax. As businesses began to offer delivery services and customers realized they could avoid sales taxes by ordering products from businesses in a different state, the complimentary use tax was enacted. Currently, every state that imposes a general sales tax also imposes a use tax.