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A business is required to pay sales tax, not collect. Like some other businesses, Amazon can just include the tax in the price. For instance, bars will include
by emperorcezar 14y ago
A business is required to pay sales tax, not collect. Like some other businesses, Amazon can just include the tax in the price.
For instance, bars will include the taxes in the drink tax because if they show you how much tax is in a glass of beer you'd be very surprised, it's something like 40%.
It's an mental game though. Do you get people "through the door" with an item at $19.99 and hope they don't close the tab when they see the $1.00 tax, or do you just advertise it at $21.99 and hope that people are attracted to you because of name, etc even though joesonlineshop.com has it for $19.99?
- mh- 14y agonot really accurate. Businesses don't pay sales tax on purchases for resale. Sales tax is paid by the consumer, but collected by the business. In most states, there is an exception afforded to food/liquor businesses that allows them to advertise prices tax-included. Otherwise, the state laws usually look like this one: http://dor.wa.gov/Content/GetAFormOrPublication/PublicationBySubject/TaxTopics/TaxIncluded.aspx http://dor.wa.gov/Content/GetAFormOrPublication/PublicationB...
- emperorcezar 14y agoSadly the link is broken. I remember when I did a small computer repair business out east 10 years ago that this was not the case.