The Internet Sales Tax is here.
If you sell goods or services on the Web (products, e-Learning, whatever), pay attention to this article in The Washington Post. The eighteen states involved in the network are Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, North Carolina, Nebraska, Oklahoma, South Dakota, West Virginia, New Jersey, Arkansas, North Dakota, Ohio, Tennessee, Utah and Wyoming. You can bet that any other states that aren't already collecting sales taxes on internet sales originating within their borders will be joining the network soon. Currently the network states are "encouraging" online vendors to participate voluntarily but as soon as Congress authorizes online taxes participation will be mandatory.
I predict this will be a large problem for small entrepreneurs. I wonder how the states will collect taxes on sales made by companies outside the U.S., and whether this may not lead to one more business opportunity moving offshore.
States Move Forward on Internet Sales Tax . Tax officials, state lawmakers and industry representatives agreed Thursday to establish an 18-state network for collecting taxes on Internet sales, a compact they hope will encourage online retailers and Congress to endorse a mandatory national program. By Brian Krebs. [Technology - Industry News, Policy, and Reviews]
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