where there’s smoke there’s forum fire
and see where I've been charged shipping AND sales tax! Huh!
Seems like a travesty, really. Not that I shouldn't have to pay it, but the point is I have no choice to report it myself when filing yearly tax return. I guess my State sales tax is unavoidable from any standpoint? BTW, I live in a tax-heavy state. If I lived in a state with no personal income tax, I assume there would have been no charge??
Several states are working toward collecting sales taxes on internet purchases. I believe that Amazon will have to start collecting taxes for about seven states in the coming year or so - California and Texas are the big ones.
If you purchase from an online store that has a physical presence in your state, you may be charged sales tax, even though the product ships from out of state to you.
Taxes and death. WHat you gonna do?
I live in Montana. No statewide sales tax. But Amazon purchases sent to an address in Washington require payment of sales tax even though there is an agreement with Washington that people living in Montana do not have to pay sales taxes on purchases made there.
In North Carolina, if an online retailer does not have a brick and mortar building in North carolina, one does not have to pay sales tax. We do have both sales tax of about 8% and a state income tax, so we are already hit pretty hard. But, on a nice camera, from one of the big houses like B & H, we are fortunate enough to not get hit with $300-500 USD of extra tax.
B&H collects directly to Canada.
Adorama does not collect to Canada, but I usually get stitched up for it (plus a "brokerage fee", yuck) by the delivery man.
Amazon.com (US) is hit-and-miss.
A bunch of other US retailers say "we don't put bogus invoices in to fool your country's customs, so don't ask us to". A lot of that is hit-and-miss.
Canadian retailers collect across Canada, usually geared to your province of residence.
If a retailer has a location in your state then they are required to collect sales tax. Here in Indiana they just passed a law that Amazon must start collecting sales tax in 2014? I think. Some states require it no matter...I think Illinois always does.
Oh yeah and just because they don't collect at the time of sale doesn't mean you don't have to pay it. There is a section on your state tax forms where you are supposed to put stuff you purchased and didn't pay sales tax on...there is just no way to enforce it atm so most don't really.
I prefer to have the sales tax collected at time of purchase. Why should I be burdened with having to consume time and money having to report it on my individual return. Anyway pending legislation will soon enable states the authority to require out of state merchants to collect and remit sales and use tax due. I am happy to see retailers finally making my life easier. I actually wish all retailers would provide the service of tax remittance on behalf of customers. This year my County increased the property tax levy a similar percentage as the county sales tax rate. It was no surprise since in the entire state residents are evading sales and use tax revenues totaling $2Billion. Now I am being forced to pay sales tax on my house every year. When my property tax bill comes I have no option. I pay it or lose the house. Whereas sales tax collected at the point of purchase is my choice. When I have money available to buy a lens or camera body I know tax is due and factor that into my buying decision. But to get my property tax bill in the mail with 30 day terms with no indication of the increase amount is not right. Congress needs to make this problem go away. With so many people knowingly and unknowingly evading tax due on Internet purchases it just increases tax burdens everywhere else. Most importantly all the education, medical, police, fire and many other services we support through our ballot initiatives are funded by sales and use tax. When the retailer collects the tax due and remits to my state that makes me happy knowing my community will be able to pay the teachers and local professionals I rely upon.
Amazon in the US are using a loophole in the EU to reduce their tax burden.
They are claiming to be a 'distribution service' in the UK for Amazon based in Luxembourg.
Google the story in The Guardian.
It is shocking.
I think they effectively bypassed paying Corporation tax of approx £500M and paid something like £5.5M.
They have then used the 'loss' in EU to offset against paying their US burden, and reduced their payments to the US economy. I was unimpressed.
here is a section for you guys in the US; I'll post the article link below.
In its most recent SEC annual filing, Amazon admits: "The effective tax rate in 2011, 2010, and 2009 was lower than the 35% US federal statutory rate primarily due to earnings of our subsidiaries outside of the US in jurisdictions where our effective tax rate is lower than in the US. Such earnings primarily relate to our European operations, which are headquartered in Luxembourg."
Amazon is currently disputing a tax bill of nearly £1bn imposed by US authorities relating to transfer pricing – a mechanism used by multinationals to trade goods and services among group companies.
It is also under fire in the US as it does not collect any sales taxes on products sold in states where it does not have an office or warehouse. It is believed to only collect sales tax in five states, but other states are now planning to alter state legislation to impose the sales tax on the company.
http://www.guardian.co.uk/technology/2012/apr/04/amazon-british-operation-corporation-tax
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