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E-commerce need to pay tax?

         

JeffLin

2:11 am on Oct 26, 2007 (gmt 0)



Hi all,
I'm a newbie here, i work at on-line wholesale store.

Recently some customers ask questions about E-commerce have to pay tax. And in many countries ,some companies dodge a tax via E-commerce, and the argue about E-commerce need to pay tax continued at varies medias.

However, i can't make sure whether E-commerce need to pay tax till now. Someone can tell me more information about it?

Thanks
Jeff

[edited by: lorax at 2:12 pm (utc) on Oct. 26, 2007]
[edit reason] no URLs please [/edit]

LifeinAsia

3:32 pm on Oct 26, 2007 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



It's hard to answer your question without more specifics. There are many different types of taxes and different areas (countries, states/provinces, cities) have different rules and rates. Depending on your exact situation, it may be difficult to find someone else here with the exact same experience.

If you are talking about SALES taxes, you will need to speak with a local tax specialist. If you are talking about INCOME taxes, I don't know of any government that don't try to grab a share of the profits from their citizens and people doing business in their country- again, talk to a local tax specialist for specifics and ways to decrease the amount as much as possible. For IMPORT/EXPORT or other local taxes, again find a local specialist.

Volusion

5:10 pm on Oct 29, 2007 (gmt 0)



Jeff,

You have to charge tax to any customer located in a state where you have a viable presence. If you are located in CA and you have a warehouse in NV, you have to charge tax in both states. Some states like New York also have county taxes you have to charge. Massachusetts has rather odd laws regarding the purchase of clothing. For the most part though, state tax laws are pretty straightforward online.