Quote:
Originally Posted by svandamme
VAT tax has always applied here on internet sales in the EU.. so quite surprised it took em so long in the US of A
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Most states have a "use tax", so it is in the tax code to tax these transactions.
The problem is the state has no way of tracking unless other states decide to share the information.
It is voluntary for you to add up your online purchases and pay taxes on them.
A little problem I found is that state tax day, and when the sales tax is due were two different dates. I was paying late fees/penalties from my voluntary reporting.
What is happening is states are figuring out ways to coerce other states and businesses into giving up the information.
The tax applied, but the method of finding out who owed what is where the difficulty was.