PDA

View Full Version : The new law about online sales taxing...



True Self Organics
01-16-2014, 12:45 PM
So I heard that starting this year companies will be charged a sales tax for online sales. Does anyone know if this is really going to happen and when is suppose to take affect? Also, what's the deal with customers in places like New Jersey where they don't have a sales tax? I wonder how that's going to affect online sales. Probably won't since people love to shop from home! Just wondering :)

Melissa

AliceT
01-16-2014, 07:05 PM
Hi Melissa,

That is a really good question! I live in Canada, but most of my products come from the US, so I am very interested to know if I will be paying additional taxes on products for resale. I currently pay a 5% tax on all imports.

When I sell to the US, I do not have to charge any tax. If someone was to sell the same product in Washington State (closest to me) and did charge tax, would US customers start to look to Canadian companies for their goods in order to avoid taxes? Or, will I also have to charge taxes to US customers?

This could end up being a bookkeeping nightmare!

True Self Organics
01-17-2014, 10:32 AM
Hi Melissa,

That is a really good question! I live in Canada, but most of my products come from the US, so I am very interested to know if I will be paying additional taxes on products for resale. I currently pay a 5% tax on all imports.

When I sell to the US, I do not have to charge any tax. If someone was to sell the same product in Washington State (closest to me) and did charge tax, would US customers start to look to Canadian companies for their goods in order to avoid taxes? Or, will I also have to charge taxes to US customers?

This could end up being a bookkeeping nightmare!

Yes, it's gonna be different for sure! I know this will level out the playing field for online and retail sales in the us.... somewhat. Most people like to shop online no matter what, but I wonder how this will affect everyone. I have no clue about Canadian sales!

kindsvater
11-08-2018, 08:25 PM
The tax issue is a state by state legal issue. There is no federal law imposing a sales tax, but the US Supreme Court recently cleared the way for states to impose a tax on online sales to customers in their state.