Liability & Legality

**ForgottenCreature** · 09-12-2006, 04:23 PM

Hello,
I was wondering how large website sales are taxed. Is it just sales tax? Has anyone had experience with this?

Thanks much!

**ltn1dr** · 09-16-2006, 09:47 PM

You wouldn't really charge sales tax, would you?

Were you asking about if you tax them or if you are going to be taxed on it?

**ForgottenCreature** · 09-16-2006, 11:41 PM

Both, we aren't supposed to charge sales tax are we? And do we just have to report it as income tax at the end of the tax period?

**ltn1dr** · 09-17-2006, 12:03 AM

I don't think you need to charge sales tax.

And about reporting it as income tax at the end of the tax period, I'd imagine thats all it'd be, just a nice little chunk of revenue.

**TomRogers** · 10-01-2006, 04:57 PM

You can get away with paying no taxes but you need a good CPA and you need to make sure you know what you're doing

**Jawie** · 02-22-2007, 06:14 PM

Basically, taxes are being imposed on Income. Sales and income are two very different things ; so sales should not be taxed but income. There is also a term in accounting known as sales income; meaning income derived from sales ,and surely a taxable amount..An example of this transaction I think is a sale wherein it would directly be considered as an income for all the deductions(expenses) are already been deducted from previous sales or from the previous transaction..

Quite confusing but interesting.

That` part of a professional judgment of an accountant. But I`m not an accountant.. purely having a brief background.

Refer to a consultant for more learnings.

Hope I`d gave a little thoughts on this.