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  • #31
    Originally posted by chrispadfield
    I have been surprised this hastn't be repealed yet, it was - I believe - inititally done to give internet firms an advantage but seems pretty unfair now. Some of the big companies seem to have operations in so many states now that its hard to avoid, there are very few states that you can buy from Dell tax free any more.
    From what I hear the bill is coat tailing on another more extensive bill and that it might not pass because of the proposed new online tax.
    Also interesting that we can go to another state to shop and pay the taxes required by the state we shop in. For years Indiana had no sales tax, they do now although it is about 4 points lower than we pay in Illinois, so border residents usually shopped in Indiana. I bought my last car in Wisconsin and saved a hefty amount in taxes.
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    • #32
      Originally posted by Wayne Luke
      There is really nothing to repeal...

      There is no national sales tax in the United States similar to the VAT. Each state collects its own sales tax. Technically if you purchase off the Internet from another state, you need to claim it on your State Income Tax Return and pay it when you file. Nobody does and there is no way for the states to enforce it. To complicate matters, not every area in the state pays the same sales tax. Los Angeles pays more (8.25%) than other areas. Base sales tax is 6% in the state and then cities and counties add their portion on top.

      Larger companies like Dell and Amazon are voluntarily collecting the sales tax from their customers and submitting it to the various states. They have the resources to do so. There is a initiative to streamline the tax system across the 50 different states but it will take some doing. I know in California it will require a constitutional amendment and that requires 2/3rds vote from all voters.

      What you are referring to is a federa law prohibiting taxes from Internet Related Services exclusively limited to ISPs, mainly telephone companies and cable companies. The law has nothing to do with sale of goods but is in place to prevent email and download taxes being initiated by states.
      No, I am not talking about the law regarding ISPs but the 1992 Supreme Court Decision:

      A 1992 U.S. Supreme Court decision prohibits states from collecting sales taxes from retailers without a "physical presence" in the state of the buyer.
      As more and more activity is conducted online and more and more spending is on services that have little or no geographical location this is going to become a bigger and bigger issues for the states that rely heavily on sales taxes.

      You are right that the current mix of state and local sales taxes make collection a problem, I imagine the states will agree on a state wide rate eventually.
      Christopher Padfield
      Web Based Helpdesk
      DeskPRO v3.0.3 Released - Download Demo Now!

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      • #33
        Originally posted by AWS
        ...so border residents usually shopped in Indiana. I bought my last car in Wisconsin and saved a hefty amount in taxes.
        If only VAT was so easy to circumvent.

        Unfortunately, everything imported into the EU is liable to have VAT added in addition to import duty. If I decide to buy something from the USA, when it arrives on my doorstep I will have an additional bill to pay for the VAT.

        To give you some figures, I had Mike send me over a lens valued at just over $300. When it arrived here, I had to pay the following:

        Import duty: £7 ($12.25)
        VAT: £37 (64.75)
        'Clearing charge': £8 ($14.00)
        Total: £52 ($91)

        The irony is that even with all these extra charges levied, it was still cheaper to buy the lens from the USA and have it shipped over than it would have been to buy it here in the UK.

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        • #34
          Also interesting that we can go to another state to shop and pay the taxes required by the state we shop in. For years Indiana had no sales tax, they do now although it is about 4 points lower than we pay in Illinois, so border residents usually shopped in Indiana. I bought my last car in Wisconsin and saved a hefty amount in taxes.
          This is the same in the EU as well where sales tax rates differ from state to state, although there is a minimum of 15% apart from excluded items (food, books, newspapers, children's clothing to name a few in the UK). There has been some attempt at a harmonized VAT rate, but Germany blocked some action on this recently:

          http://www.eubusiness.com/Finance/051206131850.6gbitlm7
          Christopher Padfield
          Web Based Helpdesk
          DeskPRO v3.0.3 Released - Download Demo Now!

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          • #35
            Originally posted by Kier
            If only VAT was so easy to circumvent.

            Unfortunately, everything imported into the EU is liable to have VAT added in addition to import duty. If I decide to buy something from the USA, when it arrives on my doorstep I will have an additional bill to pay for the VAT.

            To give you some figures, I had Mike send me over a lens valued at just over $300. When it arrived here, I had to pay the following:

            Import duty: £7 ($12.25)
            VAT: £37 (64.75)
            'Clearing charge': £8 ($14.00)
            Total: £52 ($91)

            The irony is that even with all these extra charges levied, it was still cheaper to buy the lens from the USA and have it shipped over than it would have been to buy it here in the UK.
            I ordered from a company recently for a lens, they send the lens and include an invoice for a "repair" of the lens. They then send the invoice seperatly. Sneaky
            Christopher Padfield
            Web Based Helpdesk
            DeskPRO v3.0.3 Released - Download Demo Now!

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            • #36
              Originally posted by Darren Lewis
              Companies are only required to become VAT registered (and charge VAT on their goods) when their income reaches a certain threshold. It's a bugger for the customer, but does provide some advantages for Jelsoft as they can claim VAT back on their expenses. It also means Jelsoft must be continuing to do well as a business, which can only be a good thing for us as customers.
              Or they've been commiting tax fraud for the last few years and are now beginning to pay back the tax owed
              Dean Clatworthy - Web Developer/Designer

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              • #37
                You have to reach a level of UK sales to pay VAT but I think it was recently changed to be EU sales.
                Scott MacVicar

                My Blog | Twitter

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                • #38
                  If you run a business in the EU, you can fill in a tax return to get the VAT returned. This will make the product only more expensive for normal persons.
                  Dutch vBullletin users social group!

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                  • #39
                    If you run a business in the EU, you can fill in a tax return to get the VAT returned. This will make the product only more expensive for normal persons.
                    A VAT registered EU business, not any business.
                    Christopher Padfield
                    Web Based Helpdesk
                    DeskPRO v3.0.3 Released - Download Demo Now!

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                    • #40
                      Jelsoft operates in accordance with the legislation laid down and always has done. Until now, we have not found it necessary to be VAT registered, however, for a number of business reasons now is the right time for Jelsoft to be VAT registered.

                      I am sure that you all appreciate that we have not taken this decision lightly and in the interest of continuing to develop and support vBulletin registering for VAT now is in keeping with this strategy.

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                      • #41
                        I'm assuming that if I provide a VAT ID for a registered company residing in the EU I will get the 0% rule? (also a EU regulation )

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                        • #42
                          Yes. You can enter your own EU company's VAT ID on the order form. Doing so will not make a difference if you are a UK company, the VAT has to be claimed back yourself.

                          Clearly entering another company's ID would be illegal and once this is discovered the license would be revoked.
                          Christopher Padfield
                          Web Based Helpdesk
                          DeskPRO v3.0.3 Released - Download Demo Now!

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                          • #43
                            Originally posted by chrispadfield
                            Yes. You can enter your own EU company's VAT ID on the order form. Doing so will not make a difference if you are a UK company, the VAT has to be claimed back yourself.

                            Clearly entering another company's ID would be illegal and once this is discovered the license would be revoked.
                            How are the license renewals handled?

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                            • #44
                              EU Vat validation is provided by
                              http://europa.eu.int/comm/taxation_c...n/vieshome.htm

                              Any digital services require VAT, even hosting.
                              Scott MacVicar

                              My Blog | Twitter

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                              • #45
                                Originally posted by Steve Machol
                                In Maricopa County Arizona we get pink underwear:



                                http://www.truthorfiction.com/rumors/m/miracopjail.htm

                                I ain't taking the fall.
                                We could bring a cake with a file in it........a vB file!

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