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Why do some Web retailers charge tax and others don't?

Please include sources for your answers. Thanks!

11 Answers

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  • Judy
    Lv 7
    1 decade ago
    Favorite Answer

    If the retailer has a physical presence like a store or warehouse in the state the product is shipped to, they are required to charge sales tax, otherwise not. That's why for example if you buy a book from barnesandnoble.com you generally are charged sales tax - they have stores most places - but if you buy the same book from amazon.com, in most places you won't pay sales tax.

  • 1 decade ago

    I agree with Randomizer. It all depends on the state that the company calls home and the laws that regulate that particular state. I would say that it was where the customer lives, but from personal experience that is not always the case. I have noticed for a similiar item, that some E-businesses charge a tax and others charge a tax that is less than others.

  • 1 decade ago

    1. NO retailer on or off-line CHARGES tax. They COLLECT tax charged by the state.

    2. Even if the retailer does not collect tax, you are still required to PAY tax if your state has a sales tax.

    3. Most states only require retailers to collect if they have a physical presence in the state.

    4. ALL sales taxes are governed by state law. No single source is possible. Each states Department of Revenue or whatever they call it usually has a website. Your source is ALL of those sites.

  • Well as a seller I do charge taxes to customers that are from California as well. They are taxed the same as my walk in customers.

    Out of state stores do not tax you, although I have heard for instance in the case of selling and buying at Ebay- a new law is pending about charging out of state customers a tax rate.

    In my case if customer is out of state buying on line of course, I do not charge the tax due, but keep records of my sales later on to be paid to the State Board of Equalization here in California.

    You can try their website if you like, (given below) they do have a topic on charging taxes to out of state business. Hope this helps :)

    Source(s): www.boe.ca.gov
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  • Anonymous
    1 decade ago

    Usually a store with a "national presence" or any store located in your same state will collect a sales tax. I am curious how internet sales will be affected by the FairTax act since only new items will be taxed.

    Source(s): www.fairtax.org
  • 1 decade ago

    Well Mike,

    Some may charge tax Because there state charges tax so they are charging u for it, or some have a bussiness in a state that does not charge tax therefore, they can charge u tax or not

    Hope this helps

    Randomizer

  • 1 decade ago

    The ones who don't "charge tax" are figuring the taxes into the price.

    The ones who do charge are actually buying it for you when you order it, and thus have to add the tax to cover the price THEY pay.

    Really, it's just what they call the extra money they charge ... there is no tax over the web,

  • Erika
    Lv 4
    5 years ago

    I even have on no account been conscious of this variety of physique that video exhibit instruments government spending on behalf of the universal public. I for it is hassle-free to recommend such an theory, because of the fact the way the present gadget works, we are all of the labourers who pay the demands in taxes laid down by ability of the governments. sure there are institutions, like the AA and others who remark on specific will boost in taxes, yet that has very practically no result on them being observed. i think of your theory is a robust one, yet make no mistake, it is going to on no account ensue, because of the fact it could desire to supply embarrassments to human beings that are in power.it could incredibly become conscious of the waste wherein the tax is being spend.

  • 1 decade ago

    It all depends on what state you live in.

  • Anonymous
    1 decade ago

    well some websites need the money to make better stuff on the site

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