Electronic Commerce and Multijurisdictional Taxation

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated) 

Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape

Subject Author Date Electronic Commerce and Multijurisdictional Taxation Adam W. 11-12-2008  Re: Electronic Commerce and Multijurisdictional Ta... Paul Thomas, CPA 11-13-2008
Posted by Adam W. on November 12, 2008, 11:08 pm Please log in for more thread options In electronic commerce what generally constitutes a presence for the pourpose of having to collect and or pay taxes? Dose having owned or leased equipment in a state produce an obligation to collect sales tax from customers in that state? Dose having a local P.O. box or telephone number effect this? If I buy data or data access from a European vendor and later resell this to a buyer in the E.U. dose VAT apply? Dose this change if I do or do not have equipment in an E.U. country? How about if the data or data access I buy is only part of a larger aggregate I sell? Thanks in advance, Adam W. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Paul Thomas, CPA on November 13, 2008, 8:20 am Please log in for more thread options > In electronic commerce what generally constitutes a presence for the > pourpose of having to collect and or pay taxes? > > Dose having owned or leased equipment in a state produce an obligation to > collect sales tax from customers in that state? Dose having a local P.O. > box or telephone number effect this? Having employees in the jurisdiction on a regular basis does it (sending someone to a class in the next state doesn't trip it), owning or renting facilities in that jurisdiction does it, if the PO box is something ~you or your employees~ go to (not a forwarding service) will do it. The telephone number isn't sufficient to establish nexus. Each state of taxing jurisdiction will have varying rules on what triggers nexus for tax purposes, so when in doubt, check with them. > If I buy data or data access from a European vendor and later resell this > to > a buyer in the E.U. dose VAT apply? Dose this change if I do or do not > have > equipment in an E.U. country? How about if the data or data access I buy > is only part of a larger aggregate I sell? Check with a tax accountant or tax attorney familiar with the specific country or countries involved. I suspect that'll be someone over there. -- Paul A. Thomas, CPA Watkinsville, Georgia -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Electronic payments October 4, 2008, 3:34 pm Electronic and Paper W4 December 4, 2008, 1:30 pm Electronic Filing via Turbotax March 3, 2009, 11:46 am Question about IRS and electronic documents August 16, 2009, 1:20 am EFTPS (electronic federal tax payment system) September 26, 2009, 7:52 pm Does Requirment to Provide Section 751 Statment Preclude Electronic Filing? February 24, 2009, 2:42 pm Electronic filing possible for married filing separately in community property state? April 3, 2007, 2:07 am LLC taxation questions May 25, 2007, 1:41 pm LLC taxation as a partnership May 29, 2007, 10:45 pm Re: LLC taxation questions May 29, 2007, 10:45 pm