ONLINE SALES TAX AND WHAT IT REALLY MEANS TO US
By: Joseph Warren
Online sales tax and what it really means to us.
When internet sales began, still on dial-up, and well into satellite, tax was only charged to they who purchased in the state where the company had a bricks and mortar store.
In June of 2018 it was voted that sales tax was to be reported and collected for all sales regardless of the location or not of a bricks and mortar store.
In March of 2018, the computer and electronics store, NewEgg, turned over records to state’s government regarding their customer base, showing who owed sales tax. Of course the customers felt violated and complained to the shopping store. NewEgg said they would stop the practice.
Since the new rule has been in place, this new revenue stream should gain millions for state taxes.
Hopefully governments won’t feel compelled to audit all online sales from the summer of 2018 when the new law came into play.
Sales tax should simply show up on your invoice and become part of your bill, as if you were purchasing at a local store.
As a business owner, be certain to have your sales tax on the invoice. Also, when you purchase your goods to sell, be sure to purchase with your reseller’s license.
As a purchaser, be certain you are paying your sales tax. You never know when the company from whom you purchase is going to turn over records to their state and to the IRS like NewEgg did.
Online sales tax and what it means to us, really means a new revenue stream to our states and a slight pinch for shoppers.
When there wasn’t any tax, during the past 30 years, it was a great means to build up the online shopping audience, but now, online sales have increased beyond bricks and mortar sales. The ability to charge internet tax will be a boon for the states, and the customers may feel a little pinch.