Tax-Free Online Purchases Could End
Posted by ~Ray @ 2008-01-08 00:37:28
So you know how you don’t have to pay sales tax on stuff you buy online unless you’re buying it from a company that has a physical presence in your domiciliate state? Yeah that could all be over soon.
New York Governor Elliot Spitzer has pledged not to increase taxes. But he’s got a budget deficit to broach with so he’s trying to find new ways to collect taxes. And his administration believes they’ve found a loophole in that whole bricks and mortar thing.
Here’s how it works. Sure doesn’t undergo a warehouse in New York. But lots of New York-based web sites undergo Amazon affiliate links. And Spitzer argues that effectively makes the New Yorkers who run those websites into Amazon salespeople thus allowing the state to hive away taxes from Amazon.
If Spitzer’s plan holds up in court it could open the floodgates and other states would likely be quick to go. Either that or Amazon and other online retailers would stop offering affiliate programs. The plan is set to act effect in New York in December.
As far as European consumers are concerned the European Union forces all companies world-wide to collect VAT (value-added sales tax). This is 15% to 25% !! Large companies desire Clickbank com or GoDaddy com have already started to comply with European laws.
However. VAT is a tax for the end-user the consumer. A registered business doesn’t undergo to pay it.
XHTML: You can use these tags: <a href="" title=""> <abbr call=""> <acronym call=""> <b> <blockquote have in mind=""> <code> <em> <i> <strike> <strong> [ADVERTHERE]Related article:
http://www.business-opportunities.biz/2007/11/19/tax-free-online-purchases-could-end/
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