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Sales tax may not apply to online sales in the US (that is changing, and depends on the state involved and whether the company has any presence in the state).
by mcherm 14y ago
Sales tax may not apply to online sales in the US (that is changing, and depends on the state involved and whether the company has any presence in the state). Income taxes are never incurred because of sales, only because of income. To oversimplify: no net income -- no income tax.
- eli 14y agoThat's not quite true. I believe in every state you are supposed to declare goods you buy online and didn't pay sales tax for in your end of year taxes. I don't think anyone really does this and it hasn't been enforced. The current fight isn't over whether online sales should pay sales tax, but over who should be in charge of collecting that tax: the seller or the buyer.
- einhverfr 14y agoIt's more complicated than that. Absent SSTP, if I live in a town with a special sales tax, and I buy furniture from the next town over and have it shipped to my house, I get to pay a lower tax rate. With SSTP, they furniture store has to track my address and charge me the higher rate. I don't think use tax has ever been a factor in intrastate sales tax rate variations so this does change what sort of taxes are required.