Tax

[Justin]

If I remember correctly, internet sales fall under the same category as a mail order business. Sales within the US are only charged sales tax if sold within the same state. I don't believe sales tax is charged if the seller is not in the US, being that it's a US tax, I think it only applies to US merchants.

I could of course be wrong, so don't hold me to that... :)

------------------
Justin Nelson
FutureQuest (http://www.FutureQuest.net/index.php) Support

[wolfstalks]

That's why I mentioned contacting the US host if one was being used as I understand that usually it's that way, but I have also read that Delaware isn't that way ???

Anyway, it's a huge quagmire and will probably only get worse, glad the Gov of Calif vetoed their attempt to pass internet taxation!!!

And let me add my disclaimer!
This is only My Humble Opinion, further known as MHO, which with about a buck might get a cup of coffee.[nbsp][nbsp]:P

Good Luck to your endeavor.
Bob

[Rich]

Under current regulations, if your company is located in Hong Kong, you do not need to collect US state sales tax from your customers.

Rich

[BOF]

Many thanks for all the feedback.[nbsp][nbsp]I'll 'forget' about US sales tax - let you Yanks fight it out amongst yourselves! :D

Best to all.
------------------
Chris Nowell
Hong Kong
http://www.plainwebdesign.com

[BOF]

I understand that American States have varying rates of sales tax.[nbsp][nbsp]What is the position if I (in Hong Kong) sell a product to someone in the USA?[nbsp][nbsp]Are they liable to pay sales tax?[nbsp][nbsp]If so, how do I incorporate that into a shopping cart (or do I need to)?

Any clarification and advice would be welcome.[nbsp][nbsp]Thanks.
------------------
Chris Nowell
Hong Kong
http://www.plainwebdesign.com

[wolfstalks]

Chris, to the best of my knowledge, if your site is located outside of the US and your shopping cart/check out is also, then you have no need to concern yourself.[nbsp][nbsp]If on the other hand your check out is a US based company, then you probably should contact them for guidance.

Anyway this will be a constantly evolving question on the web[nbsp][nbsp]:([nbsp][nbsp]wish they would settle the question once and for all!!!

Have a Good One
Bob

[Dan Kaplan]

wish they would settle the question once and for all!!! Yeah right, then what would the poor lawyers and politicians do for a living?

Day traders?

[Jason]

Under current regulations, if your company is located in Hong Kong, you do not need to collect US state sales tax from your customers.

Not necessarily true. While your company may be located in Hong Kong, your web site (located on the FutureQuest servers), is located in Orlando, Florida, USA. Now, I do not know Florida tax law (unfortunately), but it is *unlikely* that you will need to collect any sales tax. Most states do not consider a web server to be a physical presense within the state, and thus you wouldn't have an issue.

Some states, however, *do* consider a web server to be a physical presense. For example, California is in the process now of implementing a new law that says that if you do business over the internet, and your web server is in California, you must collect and pay sales tax on all sales to residents/businesses within the state of California (I know this because the company I work for has web servers in California and this is sending us into fits of panic right now). It's also the case that the California law *may* be interpretted to only mean if you actually *own* the server that resides in California. Virtual web sites might not apply. It's still very confusing and since the actual law hasn't yet passed it could be changed.

So, it really all depends on what Florida's tax laws are. But *at most* you'd only be responsible for Florida sales tax, and honestly speaking that is quite unlikely.

You *should* be safe, and even if you aren't, do you *really* think that Florida would try to get Hong Kong to arrest you and send you to the U.S. over what is more likely than not just a few dollars a month in sales tax? I seriously doubt that.

Thanks,

J.

[Rich]

Quote:
--------------------------------------------------------------------------------
Under current regulations, if your company is located in Hong Kong, you do not need to collect US state sales tax from your customers.

--------------------------------------------------------------------------------

Not necessarily true.
Yes, this is necessarily true. :)

There are NO regulations at the present time in any state that would require the collection of state sales tax based on a "presence" by means of using an ISP's server.

Rich

[BOF]

Thanks again for all the advice - much appreciated.

I suppose that if there were any lingering doubts the answer might be CCnow.[nbsp][nbsp]They claim that since they're based in Delaware no taxes apply.

------------------
Chris Nowell
Hong Kong
http://www.plainwebdesign.com