eCommerce Tycoon

**BruceLin** · 10-16-2007, 12:32 AM

Hi all,
I'm a newbie here, i work at factory-direct on-line retail superstore.

Recently some customers ask questions about E-commerce have to pay tax. And in many countries ,some companies dodge a tax via E-commerce, and the argue about E-commerce need to pay tax continued at varies medias.

However, i can't make sure whether E-commerce need to pay tax till now. Someone can tell me more information about it?

Reards

Bruce

**ADAM Web Design** · 10-16-2007, 02:33 AM

E-commerce isn't really any different than brick and mortar in most regards. The only difference is that e-commerce doesn't require a physical presence.

In most jurisdictions, e-commerce transactions still subject to the same taxes, debits, refunds and credits as their offline equivalents. For example, US-based e-commerce transactions are subject to the same state sales taxes.

**blue-dreamer** · 10-16-2007, 08:50 AM

Adam is correct, you need to declare all your income no matter where it comes from.

**Learning Newbie** · 10-17-2007, 06:53 PM

I'm not really sure what you're asking (there could be 2 different questions) but I'll refute what Adam said in a very minor way.

In the US, there's a difference between a store you walk into and buy something and a store you get to with the mouse and a web browser. The store you walk in and out of has to collect sales tax from the customer at the point of sale. Web stores don't if they don't have a presence in your state, the customer is supposed to do this on their own.

Now if you're talking income tax instead of sales tax, then this doesn't apply.

**colbyt** · 10-17-2007, 09:01 PM

I think Learning has hit on the actual question. At least that is the way I read it.

To put what he said in simpler terms. You only need to collect taxes from the residents of the state in which you are located. Some states may have rules about the shipping center's location. Mine does not.

To legally collect sales tax you need a tax Id number and you must track sales by the "ship to" state.

There may or may not be some rule about posting your tax ID number on cyber sales.

**BruceLin** · 10-22-2007, 10:21 PM

hi all,
All above you tell mainly based in US, but my online store base on China, and i know many countries different attitudes with tax of e-commerce, such as India
have legislated law to levy tax for e-commerce, in China most C2C business needn't to pay tax, but someone who has physics store, via online store to dodge a tax, committed guilty. So i confused about the tax of e-commerce.

**BruceLin** · 10-31-2007, 01:03 AM

Quote:

Originally Posted by Learning Newbie

I'm not really sure what you're asking (there could be 2 different questions)

Thanks for ur reply, Learning, my question really a bit large, and my question maily base on trade during different countries.