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Now it's what about Sales Tax

Wayne CamolliWayne Camolli
edited June 2018 in Questions 0 LikesVote Down
The Supreme Court now says that States can collect internet Sales Tax.
Right now I know I don't have to collect tazes for South Dakota and I do for Florida (my home state).
That leaves 48 states and literally thousands of counties and cities to investigate.
I assume states will pass legislation that mirrors the South Dakota law since it passed muster in the Court. That would exempt most of us from collecting sales tax from all but our own state. But what it they dont and say any on line seller who does over $100 in sales must collect tax. What are we to do?
Add to that VAT in Canada and and its Provinces plus 200 or so other countries. Do you know how huge the Excel file would be???
Excuse me, I'm gonna go dither about...

Comments

  • 11 Comments sorted by Votes Date Added
  • Richard OlsenRRichard Olsen
    0 LikesVote Down
    A correction to Wayne's posting. It was South Dakota's law that passed must in the Supreme Court.
  • Wayne CamolliWayne Camolli
    0 LikesVote Down
    Eel! thanks Richard.
  • Ron LenkeRon Lenke
    1 LikesVote Down
    somebody please pass the mustard
  • Mark RosenbergMark Rosenberg Staff
    0 LikesVote Down
    Yes, the Supreme Court ruling only directly affected South Dakota, which had sought to collect taxes from online retailers with more than $100,000 in annual sales or 200 transactions in the state. The ruling also left open to possibility for smaller retailers (smaller but still over the $100,000 in annual sales or 200 transactions in South Dakota) to challenge the law (the challenger in this specific case was WayFair, Inc.).

    So it is possible that additional states may look to pass similar laws, although those too may be challenged. This ruling does however mean that challenges can not simply rely on there being no physical presence within the state (the precedent for the last few decades).

    In short, this ruling does not effect any of our Sellers, and it's unlikely that any other states would enact laws which would effect our Sellers. Nonetheless, we will keep an eye on this moving forward.
  • Ron LenkeRon Lenke
    0 LikesVote Down
    Guess that means I'll have to keep my sales under $100,000 just to be safe...darn!
  • Dennis JorgensenDDennis Jorgensen
    0 LikesVote Down
    For those shipping to Canada, its GST/HST not VAT ( semantics, I know). It is currently collected by the carrier, ie Canada Post, UPS, Fedex, etc. For this service Canada Post currently collects $10 + the GST/HST. On many shipments using Canada Post, however, the shipment may make it thru with no tax collected. ALL UPS SHIPMENTS WILL HAVE GST?HST COLLECTED along with a fee to UPS for collecting the tax. I believe UPS considers the customs brokerage as a profit centre. I have no experience with FEDEX but believe they operate similar to UPS. In any case the shipper does not have to register with any Canadian Taxing agency, until the idiots in Ottawa find a way to try extort more money from small business.
  • Dennis JorgensenDDennis Jorgensen
    0 LikesVote Down
    In my case my sales to South Dakota have been nil for several years. As long as there is a realistic small business exemption I don't think there is a lot to worry about unless some beuroidiots go nuts trying to extort money to keep their snivel service standard of living funded. The scary part will be states that have multiple tax rates depending on whatever county or city that one is selling to. When I travel in the US and get a hotel/motel I am always amazed at the number of taxes that governments can dream to to impose in travelers.
  • Ron LenkeRon Lenke
    0 LikesVote Down
    Right Dennis. Just thinking about that taxes the imagination.
  • PhilaTejas PPhilaTejas
    0 LikesVote Down
    Good grief. How do philatelists in Canada even get stamps except from other Canadians? If I send a stamp costing more than US$20 to someone, Canada Post will charge them C$10 and GST? Methinks that makes it a little difficult.
  • Dennis JorgensenDDennis Jorgensen
    0 LikesVote Down
    The enforcement of GST/HST collection can be spotty. My personal experience is that shipments from the US normally get taxed but shipments from Europa and the Baltics come thru with no tax collected. I'm sure that somewhere a government gnome figured out that it costs more money to collect tax on small shipments than the tax collected, even with tax collection fee ( $10 I think). I use a US address and have stuff from the States sent to it and I pick it up and declare it at the Bluewater Bridge or Sombra Ferry. Depending on the mood of the person in the booth |I will either be waved thru or sent inside to pay the HST, but there is no additional fee.
  • David G DeckerDDavid G Decker
    1 LikesVote Down
    I have been buying stamps fron US and worldwide from various sites for at least five years. I have yet to pay a cent for any type of tax or collection fee. Granted my purchases are usually under $50. I am not clear what the rules are for GST to be applied. Even when I get parcels with CN22 from Europe, I have never has a tax imposed. I have just assumed if a tax was imposed I would just have pay it.
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