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Message
Let’s talk online sales tax
Posted on 1/18/21 at 3:46 pm
Posted on 1/18/21 at 3:46 pm
I remember not too long ago the Wild West of online ordering having no sales tax. Then as it grew to the behemoth it is today obviously the government wants its cut.
Only I can’t seem to figure out how it applies. Sometimes I order things from different states and no sales tax is applied. Sometimes it is. Is it based on where the item is purchased from? Or where the item is going? Or maybe both?
Only I can’t seem to figure out how it applies. Sometimes I order things from different states and no sales tax is applied. Sometimes it is. Is it based on where the item is purchased from? Or where the item is going? Or maybe both?
16
Posted on 1/18/21 at 3:48 pm to jlovel7
Your computer knows your location
Posted on 1/18/21 at 3:48 pm to jlovel7
A lot of times it may have to do with if the business you are ordering from operates within your state.
Home Depot, Walmart, Amazon all operate within states now so they will charge.
Home Depot, Walmart, Amazon all operate within states now so they will charge.
Posted on 1/18/21 at 3:48 pm to jlovel7
It’s based on if the company has been threatened by the government into capitulation.
Posted on 1/18/21 at 3:48 pm to jlovel7
None of us pay online sales tax. It's just you.
Posted on 1/18/21 at 3:49 pm to jlovel7
The provision was always there that you as the purchaser were meant to declare the out of state purchases on your annual state income tax return. Because people don’t read they finally got smart and started making the retailers / e-tailers collect it.
Posted on 1/18/21 at 3:49 pm to jlovel7
Some businesses are, some aren't.
They are all supposed to be, some are still under the radar. There's a compliance cost to the businesses who collect and remit.
They are all supposed to be, some are still under the radar. There's a compliance cost to the businesses who collect and remit.
Posted on 1/18/21 at 3:51 pm to fightin tigers
quote:
Amazon all operate within states now so they will charge.
Amazon is also a listing agent for small businesses to sell their wares. If you are buying from Amazon, the bohemoth rule applies so they have to collect sales tax. If you are ordering from a small out of state mom&pop that utilizes the Amazon infrastructure, you probably won't be because the small mom&pop doesn't have to ... even though the appearance is that you are ordering from Amazon.
In most states, the online sales tax applies if the business has a presence in the state being shipped to, OR if the business is a bohemoth, like Amazon, with sales over so many million, whether or not they have a presence.
Posted on 1/18/21 at 3:51 pm to jlovel7
They don't collect sales tax from all companies but most of the major ones. You are supposed to report those on your tax return and pay it at that time.
Surely you aren't cheating on your taxes?
Surely you aren't cheating on your taxes?
Posted on 1/18/21 at 3:52 pm to fightin tigers
quote:
A lot of times it may have to do with if the business you are ordering from operates within your state.
Home Depot, Walmart, Amazon all operate within states now so they will charge.
I don't think that's ENTIRELY accurate. If you are a Louisiana resident, I'm pretty sure you are ALWAYS on the hook for sales tax if you purchase something. If the seller has a presence in the state, that's when I think they have to collect the tax. If it does not have a presence in the state, it's kind of grey on whether or not they have to collect it for the state.
If, for any reason, the seller does not operate as the government's tax collector, you are still under the obligation to report the purchase on your Louisiana return and pay the tax directly.
{{WINK, WINK}}
This post was edited on 1/18/21 at 3:53 pm
Posted on 1/18/21 at 3:56 pm to Cymry Teigr
quote:
The provision was always there that you as the purchaser were meant to declare the out of state purchases on your annual state income tax return
Posted on 1/18/21 at 4:03 pm to jlovel7
quote:another oregon perk
no sales tax
Posted on 1/18/21 at 4:12 pm to jlovel7
quote:
Only I can’t seem to figure out how it applies. Sometimes I order things from different states and no sales tax is applied. Sometimes it is. Is it based on where the item is purchased from? Or where the item is going? Or maybe both?
It's generally based on your area code (purchaser). I haven't been in the sales tax game for two years or so, but the Wayfair decision still hasn't been fully implemented for a lot companies yet.
Posted on 1/18/21 at 4:13 pm to TigerstuckinMS
quote:
I don't think that's ENTIRELY accurate. If you are a Louisiana resident, I'm pretty sure you are ALWAYS on the hook for sales tax if you purchase something. If the seller has a presence in the state, that's when I think they have to collect the tax. If it does not have a presence in the state, it's kind of grey on whether or not they have to collect it for the state.
It's called Nexus; however, that kind of got thrown on it's head with the Wayfair decision.
Posted on 1/18/21 at 4:15 pm to Cymry Teigr
quote:
that you as the purchaser were meant to declare the out of state purchases on your annual state income tax return.
Posted on 1/18/21 at 4:26 pm to jlovel7
Why can ebay charge sales tax on a used item?
Posted on 1/18/21 at 4:48 pm to jlovel7
There are different tax nexuses in different states and diff counties and parishes across the country.
So, as part-owner in an online business it has been an absolute nightmare to tackle but the vigilance is paying off because we are seeing similar businesses in our space only NOW start to realize it but that means an unfathomable backlog of data searching for them to catch up on taxes they haven't paid.
MANY places still have no sales tax, though.
So, as part-owner in an online business it has been an absolute nightmare to tackle but the vigilance is paying off because we are seeing similar businesses in our space only NOW start to realize it but that means an unfathomable backlog of data searching for them to catch up on taxes they haven't paid.
MANY places still have no sales tax, though.
Posted on 1/18/21 at 5:49 pm to jlovel7
Most states tax sales at the point title to the goods transfer, ie the destination of the goods.
A retailer must collect sales tax if they have nexus in that state. Nexus is created by having a physical presence in the state or if the retailer exceeds a certain number of sales or dollar amount of sales in that state, as determined by state law.
A retailer must collect sales tax if they have nexus in that state. Nexus is created by having a physical presence in the state or if the retailer exceeds a certain number of sales or dollar amount of sales in that state, as determined by state law.
Posted on 1/18/21 at 5:53 pm to jlovel7
Some of my eBay transactions aren't taxed. Don't know why
Posted on 1/18/21 at 5:58 pm to btr08ex
quote:
Why can ebay charge sales tax on a used item?
Because you don't have a resale license.
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