Taxes

[harmonicalessons]

Re: Taxes

Agent as in "independent sales agent for drop-shipper". For example, you sell the goods of the drop-shipper in return for a commission or percentage of sales. If you purchase items from the drop-shipper, and they merely provide "shipping" as part of the purchase price, you typically don't have to tax in the shipper's state.

Netblazon.com is the only one that has an affordable tax module that i know of.

Bruce,

"...you sell the goods of the drop-shipper in return for a commission or percentage of sales."
I see. Then that would be like having an affiliate deal with Amazon or Barnes and Noble.

But, if you're buying the goods from the drop-shipper, even though they are shipping (i.e. products warehoused in their state, not in mine), you would need to add in your own state sales tax rate. Is that correct?

Thanks,
Dave

[Siamese-Dream.Com]

Re: Taxes

Just to confuse the picture...

amazon is dropping all affiliates in California because of the sales tax measure, meaning amazon would have to collect sales tax on California purchases.

What I don't understand is why amazon can ADVERTISE on web sites where the corporation that publishes the sites is in California and not be taxed, but that they can't use affiliates who are based in California....

Amazon are basically paying both types of people / companies. Just one is paid a flat monthly (or cost per impression) rate, while the other is paid on a cost-per-click rate.

Makes no sense to me at all...

[harmonicalessons]

Re: Taxes

Just to confuse the picture...

amazon is dropping all affiliates in California because of the sales tax measure, meaning amazon would have to collect sales tax on California purchases.

What I don't understand is why amazon can ADVERTISE on web sites where the corporation that publishes the sites is in California and not be taxed, but that they can't use affiliates who are based in California....

Amazon are basically paying both types of people / companies. Just one is paid a flat monthly (or cost per impression) rate, while the other is paid on a cost-per-click rate.

Makes no sense to me at all...

Mark,

I agree completely. Not at all surprising based on many silly, lobbyist-motivated government decisions.

Did you see my other questions for you about 3 posts up?

Thanks,
Dave

[Siamese-Dream.Com]

Re: Taxes

I haven't checked in with them again... so no, I don't have an updated answer yet.

I think the best thing to do would be to WRITE them because if push comes to shove and for some reason one were to end up in court with the BOE, only a letter from an agent there would work as a get out of jail free card.

[jsdva]

Re: Taxes

The dropping of affiliates in California is a retaliatory strike by Amazon against the tax CA is trying to make Amazon collect on affiliates. Advertising has nothing to do with whether a company is taxed or not...the physical nexus (company's state of residence) has historically been the impetus for charging the tax. However, Amazon does not have any corporate or fulfillment centers in CA, but the affiliates do, hence CA trying to make Amazon collect the tax. IE: That fulfillment center shows a physical nexus.

This is not over. Amazon will fight it.

Side note: South Carolina just adopted a measure for Amazon to build a fulfillment center in SC and allowed them five years before collecting tax.

My client was the one told to collect the 8.25% tax, since they have their business in CA. All I can tell you is what they were told.

[wcw]

Re: Taxes

I'm surprised they aren't saying your nexus is where the server/host is located.

[Siamese-Dream.Com]

Re: Taxes

By the way, California based businesses:

The State tax rate drops to 7.25% today (of course the total sales tax you have to collect will be higher due to your city / district rates being added on).

But in general, we will see our sales tax rates drop 1% today.

[jsdva]

Re: Taxes

By the way, California based businesses:

The State tax rate drops to 7.25% today (of course the total sales tax you have to collect will be higher due to your city / district rates being added on).

But in general, we will see our sales tax rates drop 1% today.

Isn't that funny. CA drops the state tax rate, but tries to make up for it through taxes and Amazon. Kind of like saying they're lowering taxes on taxpayers, but in reality they are increasing on other people/entities/businesses.

I'm surprised they aren't saying your nexus is where the server/host is located.

Maybe that's what CA is saying...maybe Amazon has servers in CA (for a hypothetical), hence CA thinks they can play with taxes and Amazon. Mess with the description of a physical nexus, and the hypothetical could be CA's reality.

[alphabet]

Re: Taxes

I have been using AvaTax module from Argentis Consulting and it is affordable, very easy to install and use, scrubs address data and handles all the technical tax questions and reporting. This link is to their SAP solution but there is one for MIVA.

http://www.argentisconsulting.com/sa...ne/avatax.html

[Krsullivan]

Re: Taxes

Hey Guys,

Someone asked about the California Sales tax rate. I do not agree with the flat state wide rate of 7.25% for internet sales, if you read this two documents form the BOE.. http://www.boe.ca.gov/pdf/pub177.pdf this explains you must collect the 7.25% state rate PLUS the Local district tax which depends where your business is from. (the document is written poorly). You can also get some additional info from this also http://www.boe.ca.gov/sutax/pdf/pub109.pdf. This is what we figured out as well as our attorney. Don't be afraid to call the BOE, you will find them helpful, and they are real good at giving you the publication number that supports the answer to your question.

We recently went through a BOE audit, they seems more concerned about what we purchased from companies outside California that we used as the end user (IE computers, office supplies etc,) from companies like Amazon, buy.com etc. They seem to be targeting California companies that failed to pay USE tax, on their purchases. In 2007 the California legislators pass a law that any California company with gross receipts of $100,000 or more, must pay USE tax on their out of state purchases. (I am NOT talking about goods for resale)

Also, the reduction of 1% in sales tax, was not really a reduction. If you remember several years ago, California adopted a temporary 1% increase in Sales Tax, This tax was scheduled to sunset (end) this year. The state legislators failed to have enough votes to extend the tax. Its an election year.

Kevin

www.automotiveworkwear.com

[Siamese-Dream.Com]

Re: Taxes

...you must collect the 7.25% state rate PLUS the Local district tax which depends where your business is from.

Can you clarify this, because the word "local" isn't defined:

If your business is located in Los Angeles and you ship to San Diego, then you collect the Los Angeles Tax rate, correct???

Or do you collect the San Diego tax rate (where the customer is located).

I assume the first.

[Siamese-Dream.Com]

Re: Taxes

I'm surprised they aren't saying your nexus is where the server/host is located.

On a related note, the US Justice Department just proclaimed that .com and .net domain names operate under US Jurisdiction, since they must be registered through Verisign, which is a US company.

They said they will use this to go after sites that sell pirated downloads with .com or .net extentions, no matter where they are located.

[jsdva]

Re: Taxes

On a related note, the US Justice Department just proclaimed that .com and .net domain names operate under US Jurisdiction, since they must be registered through Verisign, which is a US company.

I wonder why only .com and .net? That just doesn't make a lot of sense. Rather, I would think it would be the address the domain is registered under. Baffled.

[Siamese-Dream.Com]

Re: Taxes

I wonder why only .com and .net?

Hey there, Jamie:

i think it is because those two extension can ONLY be ISSUED through verisign (even if you purchase it from some other register).

And since verisign is a US company, the justice department can then claim jurisdiction.

At least, that is what I understood.

[ids]

Re: Taxes

Isn't this all quite troubling?

California, and other states like it; do or want to: charge sales tax on items purchased for business, charge you a tax for USING that item in business, have you become the state's agent to collect sales tax for them when you sell an item, charge income tax on any monetary gain from sales you make in business.

I am sure there are taxes and fees (taxes not categorized as taxes) that I did not list. And this is not even a VAT tax.

Scott