Internet Company, Multi-State Sales and Use Tax?
I enjoy 3 question for the duty gurus out at hand.
Please shed some fluffy.
1) I'm starting an internet company which offer monthly subscriptions. Are subscriptions considered product or service?
2) Because the company will adopt multi-state memberships,
are we responsible for collecting internet sale and/or use excise?
3) If the company does have need of to collect sale and/or use due,
is sale import tax required if the subscription is purchased by someone living in the state where on earth we are headquartered?
Please write down your authority.
Cheers!
Answers:
1) Each state have different directive and regulation requirements. I know, lots of work..sorry!
2) If you are selling a perceptible item and sale and/or use due is due for adjectives or some states, yes it will be your responsibility to collect the toll. My state (California) impose the levy on the retailer but the retailer is allowed to reimburse themselves thru their customers. So regardless if you "collect" the rates or not, if it's due, you owe it.
3)Again, check beside your state.
Good luck ~~
btw, I'm a Tax Representative for the State of California
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Please shed some fluffy.
1) I'm starting an internet company which offer monthly subscriptions. Are subscriptions considered product or service?
2) Because the company will adopt multi-state memberships,
are we responsible for collecting internet sale and/or use excise?
3) If the company does have need of to collect sale and/or use due,
is sale import tax required if the subscription is purchased by someone living in the state where on earth we are headquartered?
Please write down your authority.
Cheers!
Answers:
1) Each state have different directive and regulation requirements. I know, lots of work..sorry!
2) If you are selling a perceptible item and sale and/or use due is due for adjectives or some states, yes it will be your responsibility to collect the toll. My state (California) impose the levy on the retailer but the retailer is allowed to reimburse themselves thru their customers. So regardless if you "collect" the rates or not, if it's due, you owe it.
3)Again, check beside your state.
Good luck ~~
btw, I'm a Tax Representative for the State of California