E-commerce need to pay tax?

[JeffLIn]

Hi all,
I'm a newbie here, i work at on-line wholesale store(http://www.sourcingmap.com).
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

[wige]

What country/state are you in?

[nottheusual1]

Since you are shipping into the United States, you **currently** have no obligation to collect State sales tax (laws do change).

If you start shipping from a US warehouse, you would be **actually** obligated to collect sales tax for shipments into the State where the warehouse is located. In some States, laws are written to require collection of sales taxes if your Ecomm operation (your server) is located there, but I have never heard of any blatant enforcement of those laws and am aware of nobody who has ever been faced with enforcement, so I'm sure it's never been tested in court.

[JeffLIn]

Originally Posted by wige

What country/state are you in?

I am in ShengZheng ,China

[wige]

For the US at least, provided you have no "significant business presence" in any US state, you should not be responsible for any sales taxes, but you are likely to be required to collect export tax if such is applicable. In the US, the standard is as I mentioned "significant business presence" in a state, typically a business location such as a warehouse, repair or processing facility, retail location or administrative office. Items sold to consumers in states where you don't have a presence may still be taxable, but by US law you are not allowed to collect taxes for that state, so payment of "use tax" falls to the consumer. (You usually need a license to collect sales tax.) In the EU, with VAT, I think it gets even more complicated.

NOTE: IANAL, so check with a legal professional who is knowledgeable about the laws regarding international commerce in your area before taking any action.

[JeffLIn]

thanks wige,
a good suggestion above, i will consider about it .

[gulfscapes magazine]

Is there a web site with more info about to tax or not to tax?

[JeffLIn]

The report about tax i read is mostly about China, because recently many companies dodge tax via E-commerce, and some companies were Declared guilty, so the argue about E-commerce need to pay tax continued fiercely controversy in China.

[abbeydguru]

i believe this is an issue we all need to iron out.

[JeffLIn]

agree with abbeydguru,
i will pay close attention to the tax policy with e-commerce.

[JeffLIn]

Recently , i read some news about running stors online need licence,
i don't think it's a good news for webmaster, what do you think about it?

[yougottakickalittle]

Jeff,
In the U.S. you don't need a license to run a website or online store. You also don't need a license to run a bricks and mortar store either. But you do need to pay any applicable taxes. Unfortunately that can different from state to state, country to country.

I'm not sure how laws are structured in China, but I hope they don't require you to have a license to do business. But it wouldn't surprise me.

[fionix]

You posted this question already on another board, however I will also give you my 2cents here then

Of course you will need to pay tax if you run a Internet Business. I do not understand why many people thing that just because they have there business on the Internet then they do not need to pay tax. You should ask your companies Auditor / Advisor they might be able to give you the correct answer to your questions.
Tax rules are different from country to country, so you need local input for this question to be answered.

[nategeeze]

If your housing inventory in the U.S. you need to get a U.S. Tax ID to move the inventory through customs in bulk. When our customers move inventory into our Canadian warehouse they need to get a Business Number (same same but different).

[msinfo]

The "Tax" field actually helps you receive a lower rate in the case of a customer using business credit cards. As many of you may know business cards do tend to downgrade to a Non Qualified rate. Sometimes this may be avoided if you enter an invoice number and a tax amount (even if it's 0.00)

[fahadp]

You have to pay taxes according to your local government taxation rules. Weather you sell online or not, if some taxes are applicable according to your taxation authorities you have to pay them.

[pixma85]

You pay sales tax in the state your business is located in.

Some sites such as new egg has warehouses in ca and nj which they charge sales tax in since they own warehouses in those states.

You pay taxes on profits.

Pay those taxes and you don't have to worry.