Taxes. And more taxes.

[JLSleather]

As of 10/01, 43 of 50 states now collect sales tax whether they are located in your state or not.  Are we all complying with fed law?

 

[nrk]

many ppl thought trade war with china won't cost usa anything..

[Lobo]

I think I can quote President Theodore Roosevelt accurately:

"The creation of a national income tax will serve only to create a nation of liars".

"When the people find out that they may vote for themselves largesse from the national coffers the republic will degenerate to a democracy, and the democracy will degenerate to a socialist state".

Both quotes are over 100 years old now, and both are equally accurate.

I will just add this little item to the growing list of why I am happy to be retired and don't have to deal with such things anymore.

[chrisash]

Our way seems simpler but still expensive, we have VAT Value added tax of 20% and that applies on all purchases bar a few like food, books and childrens clothes. Each business that is registered basically pays the vat on what it buys and sells, it can reclaim the vat on goods it buys, by offsetting it against the selling vat, and send the dosh to the government once a month, same rate applies across all UK countries

small companies and self employed etc don't have to register until turnover is above £85,000 per year, so have to pay on goods brought but dont have to charge the extra for selling

Yours seems a bit of a nightmare with different rates etc

Edited October 6, 2019 by chrisash

[SolarLeatherMachines]

On 10/3/2019 at 3:28 PM, JLSleather said:

As of 10/01, 43 of 50 states now collect sales tax whether they are located in your state or not.  Are we all complying with fed law?

 

Almost every state has a minimum dollar amount that must be sold before sales tax for that location must be collected.  Usually that minimum is 100K.  This was done to specifically protect small businesses.  

[Mark842]

On 10/3/2019 at 2:28 PM, JLSleather said:

As of 10/01, 43 of 50 states now collect sales tax whether they are located in your state or not.  Are we all complying with fed law?

 

I don't know if we all are but I do.

[CIC]

On 10/3/2019 at 4:28 PM, JLSleather said:

As of 10/01, 43 of 50 states now collect sales tax whether they are located in your state or not.  Are we all complying with fed law?

 

My business concerns are licensed to collect sales tax.  I have yet to receive proper notice from the taxing authorities (in my case: states) of a legal obligation to collect sales tax from buyers in other (states.)  I know the big guys like Amazon & PayPal & eBay do it but that doesn't impact my business dealings.  Am I just in one of those states?

Would you be able to cite the actual federal law that you are asking about?

Thanks

[chuck123wapati]

4 minutes ago, CIC said:

 Am I just in one of those states?

Thanks

How would we know you don't say what state your in. 

[JLSleather]

Oh, I did say federal law, didn't I?  Actually, it's a nationwide issue, but not "federal" (hence, not all states).

But no, you're not in "one of those states".  It's not a question of where YOU are... it's a matter of where the BUYER is.  It's a bit of a mess, and even tax people are saying it's likely to take a few YEARS to get all of it ironed out.  

Compounded, of course, by people.  Some will say they're a "business" on social sites and to avoid paying tax on materials.  SOME of those will even bother to register with local / state entities. Then at tax time, they're "just a hobby"

If you're making a few things a month, probably well under the radar as far as minimum $ requirements.  Course, there's the question of - if nobody notices your delinquency, is it even worth being in it?  But I wouldn't rely on "i didnt get a notice".  I once "got a notice" that I owed more tax FROM THREE YEARS BACK.  You can of course argue that if you like, but you will pay it in the end ...

[JLSleather]

11 minutes ago, CIC said:

I know the big guys like Amazon & PayPal & eBay do it but that doesn't impact my business dealings

Because of the volume of sales put through those places.  They don't care about that, either.  They'll have processing costs of course, but since they're getting a significant cut of the sale without actually DOING anything to make the goods, they'll survive that. It may be that these places actually LOBBY FOR IT - since the "little guy" doesn't want to 'mess with' all that tax processing, these large sites become more of a lure.  For example, some might say -- instead of dealing with all that tax "stuff", I'll just sell on Cutesy where all that is done FOR me.  And it IS computed by that site... but you should ask your tax people how you should record that - I wouldn't know how to do that (yet). 

I only list a few things on Cutesy, and not at all on Ebay or Amazon, and if this complicates that I'll eliminate the Cutesy "store".

I use Square for card processing, seems to work well.  But I have to calculate tax myself.  Sometimes get emails about creating a Square "store", which i have not done, and I do not know if that "store" includes such tax processing.