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So will we see VPNs in Delaware spike from this? It's not clear to me if this is just extending already existing state sales taxes to the Internet, or if these
by apawloski 13y ago
So will we see VPNs in Delaware spike from this? It's not clear to me if this is just extending already existing state sales taxes to the Internet, or if these are new, additional taxes.
- acjohnson55 13y agoNot unless you're getting your products shipped to Delaware
- apawloski 13y agoI was thinking of services I use, not necessarily physical products, but you're right. That was just tongue-in-cheek though. I'd still like clarification on the second part.
- saurik 13y agoServices are generally (a hedge I only add as maybe one state out there is doing something insane) not subject to sales tax, only "goods". As an example, it is typically the case that software will transition from an untaxed service to a taxed property when it is no longer "custom", and instead made once and sold to multiple people, or in hilarious cases (California) the second you make the mistake of providing it on physical media.
- anywhichway 13y agoI believe your tax would be based on billing address, so vpns wouldn't help. And no, this isn't a new tax, just one that virtually no one pays. When you buy stuff online from a company with no physical presents in your state they aren't required to collect a sales tax. You're still suppose to self report it and pay it when you do your taxes at the end of the year, but very few people do.
- dragonwriter 13y ago> It's not clear to me if this is just extending already existing state sales taxes to the Internet, or if these are new, additional taxes. It is Congress allowing states the option to extend, under certain conditions designed to ease compliance burdens, existing sales and use taxes to be collected as sales taxes from internet-based vendors selling into the state.