TAXS AND YOUR ONLINE BUSINESS
Doing business online is starting to be a much ,preferred way of transacting business both by the
sellers and the buyers not only because it is way more hassle-free than real shopping but also because
it provides a chance for a tax-free business transaction to transpire.
However, the happy days of transacting business without worrying about the taxes that come along
with it will soon be over because on July 1, 2008, Washington will be joining 18 other states in
America that oblige certain online or e-commerce businesses to pay and collect sale taxes.
If you have an online business or if you are planning to start one, then you will also be required to
collect taxes from your consumers or costumers if ever you are residing in a state that requires you to
pay taxes. A State Law Passed In 2007 The changes to be implemented on July 1 are the result
of a state law passed in 2007. The certain state law changes the way the taxes are calculated - a major
alteration that spurs some headaches and confusion among all online retailers.
Take this situation for example: if you decide to shop and purchase in a shop or store, you are obliged
to pay the tax rate depending on where the store is located. However, if you decide to have the stuffs
that you purchased delivered to your doorstep, you are obliged to pay for the tax rate of your state.
In technical terms, the tax system will be changed from origin-based to destination-based.
The Tax Is Not Levied On The Business ,Yes, you read that right - the tax is not levied on the
business, instead, it is levied on the part of the
consumer. It is the obligation of online businesses to collect tax from its consumers and remit it to the
state.The government is strictly issuing penalties for businesses that fail to adhere to the law.
Online businesses are not excused from this law, in fact, more law enforcers and agents are being sent
to check on the legality of online stores and businesses.
One common Internet myth is that the Internet Tax
Freedom Act allows online businesses from being exempted from collecting sales tax from their
consumers. It is truly considered as one big myth because in reality, it does not actually stop the
states from collecting sales tax on online businesses and other e-commerce.Sure, the Internet Tax
Freedom Act does not impose sales tax on Internet access fees but aside from that,
taxes are already imposed.
When You Make Money Online, You Have To Pay Taxes When you earn, you really have to pay
taxes; it’s a known fact and perhaps what we can call a bittersweet reality. Sure, it may be a bit
difficult on our part to surrender a part of our hard-earned money for tax dues but the truth is,
everyone is doing so.
All income-generating businesses and stores are required to pay their due taxes. A law is a law and it
must be followed at all costs. Some people who are involved in online businesses try to doge their
tax-paying responsibilities. They think they are smart enough to be able to escape their tax-paying
duties but the truth is, they’ll get into deeper trouble once the government finds out their dirty work. If
you want to be successful in your carrer as an online businessman/woman, try to be as clean and
honest as you can with your taxes and your online business.