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Show ALL Forums  > Off Topic  > Charging Taxes for sales throughout the U.S. and Canada ?      Home login  
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 Neapolitan
Joined: 9/4/2006
Msg: 1
Charging Taxes for sales throughout the U.S. and Canada ?Page 1 of 1    
This has to be in the running for the most way 'off topic ' question on a 'dating' site, but where else to ask for marketing advice !?
I have several small products ($12.) that i'd like to sell on-line and mail out when ordered (i've looked at PayPal). Do i need to find out the tax rate for each Province and State, and then collect this and somehow redeem it ? This must be next to impossible and seems unlikely ? What to do ? ps. I live in B.C..
Thanx if you can help after you stop laughing ! N
 veevee
Joined: 2/14/2006
Msg: 2
Charging Taxes for sales throughout the U.S. and Canada ?
Posted: 2/1/2012 7:51:03 PM
I've never dealt with out of country websites but I know that here it's compared to the state that the business is located in. Depending upon the fluctuation of currency your money could change and you have to account for fees - ex. I used to have a subscription to a game in another country and my bank charged a fee to do the exchange to whatever it was. Paypal might do that too so you would want your software to tack on that fee before the payment amount was tallied. http://biztaxlaw.about.com/od/businesstaxes/f/onlinesalestax.htm

You need to contact a CPA about this not website people.
 onlydateIF
Joined: 11/15/2011
Msg: 3
Charging Taxes for sales throughout the U.S. and Canada ?
Posted: 2/1/2012 8:19:44 PM
Can't help ya re Canuck taxes, but for US locations, you's want to check w/ Departments of revenue for that.
 Viper1E
Joined: 11/30/2011
Msg: 4
Charging Taxes for sales throughout the U.S. and Canada ?
Posted: 2/1/2012 9:03:05 PM
All sales made over the net are tax free for now. But when I sell internationally, even to a friendly country like Australia, I have a full sh!tload of Customs paperwork to do. Fracking export laws!
 BalderDog2
Joined: 1/6/2011
Msg: 5
Charging Taxes for sales throughout the U.S. and Canada ?
Posted: 2/1/2012 9:39:52 PM

All sales made over the net are tax free for now.


Not quite. In the United States, depending on the state (it could be all states), the buyer is required to pay the sales tax--states use the term "Use Tax"--to the state where the item will be used. In fact, here in Maine, if you go on vacation to another state where the sales tax is lower, buy a six-pack of beer, drink five of them out of state, but return home with one can rolling around in the back seat of the car, Maine will expect you to report and pay the difference between the two taxes because the can of beer is now in Maine and will likely be used in Maine.

I know this because I once lived out of state for about ten years. When I returned, the state sent me a bill demanding that I pay a Use Tax for everything I bought in all those other state during that ten years. Before they let me off the hook, I had to prove, by showing a record of employment, that I actually lived out of state for the ten years so couldn't have possibly travel the 3000 miles back to Maine each day and use within the state boarders whatever it was I bought that day back in Las Vegas or where ever I was living during that time. Of course they didn't know how much I spent--the bill didn't have a total; just a demand for payment of an amount to be determined. I was expect to give them a list of all I'd purchased.
 Viper1E
Joined: 11/30/2011
Msg: 6
Charging Taxes for sales throughout the U.S. and Canada ?
Posted: 2/1/2012 10:00:10 PM

Not quite. In the United States, depending on the state (it could be all states), the buyer is required to pay the sales tax--states use the term "Use Tax"--to the state where the item will be used. In fact, here in Maine, if you go on vacation to another state where the sales tax is lower, buy a six-pack of beer, drink five of them out of state, but return home with one can rolling around in the back seat of the car, Maine will expect you to report and pay the difference between the two taxes because the can of beer is now in Maine and will likely be used in Maine.


Ok, my bad.. I was referring to the "real world"..

Pa also has a "use tax". As in we "used" to laugh at it when we drive to the indian reservation in New York, and buy our cigarettes for half the price of Pa, and then come home with 5 cartons in the car.

They may as well try to regulate the coldness of my beer. The net is even more wild and free..
 BalderDog2
Joined: 1/6/2011
Msg: 7
Charging Taxes for sales throughout the U.S. and Canada ?
Posted: 2/1/2012 10:19:11 PM

They may as well try to regulate the coldness of my beer.


I'd agree with that.

Nobody pays the Use Tax, but the state of Maine is always trying to catch people who don't. Are they successful? I don't know. It must be worth the effort for them, because they don't give up on it and keep trying.
 Revilors
Joined: 10/9/2008
Msg: 8
Charging Taxes for sales throughout the U.S. and Canada ?
Posted: 2/1/2012 11:23:52 PM
I don't EVER remember paying sales tax on anything I've bought over the internet for personal use.

I "think" (and I use that term loosely) that if you ship it within your state...you need to charge sales tax...and if you ship it out of state there is no sales tax. That would be the US. Your volume of sales may also make a difference.

This income you make from the sales would be an issue (in the US) with the IRS...however.
 Aristotle_Amadopolis
Joined: 12/8/2011
Msg: 9
Charging Taxes for sales throughout the U.S. and Canada ?
Posted: 2/2/2012 5:28:30 AM

I have several small products ($12.) that i'd like to sell on-line and mail out when ordered (i've looked at PayPal). Do i need to find out the tax rate for each Province and State, and then collect this and somehow redeem it ?

Short answer is no.

The only way you are legally allowed to collect taxes is if you have a tax number for that province or state.
 Neapolitan
Joined: 9/4/2006
Msg: 10
Charging Taxes for sales throughout the U.S. and Canada ?
Posted: 2/2/2012 1:25:43 PM
Thanx everyone for your help---i probably have no business being in business !
Show ALL Forums  > Off Topic  > Charging Taxes for sales throughout the U.S. and Canada ?