• Software
  • Supreme Court ruling on taxes (p.2)
2018/06/23 15:15:12
robbyk
I think Larry's idea is correct, get what you need now, I'm glad I do. But I agree with Bitflipper, a can of worms has been opened...
 
BTW, this is a good funny, we need "funny" in these times :) "Years ago the state of Oregon wanted to collect liquor tax from airplane passengers flying over their state. That idea didn't fly, for obvious reasons."...
2018/06/23 15:17:25
bapu
I'm not sure I have enough yet, I better buy some more.
2018/06/23 17:02:39
Michael A.D.
Corporations get massive tax breaks.
The rich get massive tax breaks.
Middle class gets to pay more taxes.
This is making America great again (for the rich).
2018/06/23 17:04:55
DaveClark
JohanSebatianGremlin
It won't fall on the owner of Jethro's Unique Vintage Plugins Inc to solve this. It will fall on Squarespace or Wix or Sitebuilder or whatever other site building/hosting solution he or she uses to solve it for them. Pretty much same with the accounting. Quickbooks will have to build that in to the services they offer. As will all the CPA's of the world.



It doesn't work that way now, even though it could have been set up about twenty years ago when accountants began discussing this situation, and which many believed was inevitable.  The ecommerce sites currently require the business owner to set up all the tax rules for their site, collect such taxes, and report them.  IMO that will continue for the most part for the following reasons:
 
1) "We recommend consulting with a tax professional or an accountant on what may be your best options, plus any applicable laws to your state, country or business. Each business is unique, and there’s no way we can cover millions of possibilities."  (woocommerce site, emphasis added)
 
2) It's not the ecommerce software provider's legal responsibility to calculate, collect, and report taxes for sales that are arranged through the use of their software.
 
Regards,
Dave Clark
 
Here are some examples to provide just a glimpse of how complicated it is just to set up taxes at an ecommerce site, that is not including all the research, collecting, and reporting tasks.  The biggest task for many business owners is to enter each region and its rule set. 
 
https://docs.woocommerce.com/document/setting-up-taxes-in-woocommerce/
 
https://help.shopify.com/manual/taxes
 
 
2018/06/23 17:05:45
JohanSebatianGremlin
Michael A.D.
This is making America great again (for the rich).


The rich are the only ones who matter. Been that way forever.
2018/06/23 17:13:54
JohanSebatianGremlin
DaveClark
JohanSebatianGremlin
It won't fall on the owner of Jethro's Unique Vintage Plugins Inc to solve this. It will fall on Squarespace or Wix or Sitebuilder or whatever other site building/hosting solution he or she uses to solve it for them. Pretty much same with the accounting. Quickbooks will have to build that in to the services they offer. As will all the CPA's of the world.



It doesn't work that way now, even though it could have been set up about twenty years ago when accountants began discussing this situation, and which many believed was inevitable.  The ecommerce sites currently require the business owner to set up all the tax rules for their site, collect such taxes, and report them.  IMO that will continue for the most part for the following reasons:
 
1) "We recommend consulting with a tax professional or an accountant on what may be your best options, plus any applicable laws to your state, country or business. Each business is unique, and there’s no way we can cover millions of possibilities."  (woocommerce site, emphasis added)
 
2) It's not the ecommerce software provider's legal responsibility to calculate, collect, and report taxes for sales that are arranged through the use of their software.
 
Regards,
Dave Clark
 
Here are some examples to provide just a glimpse of how complicated it is just to set up taxes at an ecommerce site, that is not including all the research, collecting, and reporting tasks.  The biggest task for many business owners is to enter each region and its rule set. 
 
https://docs.woocommerce.com/document/setting-up-taxes-in-woocommerce/
 
https://help.shopify.com/manual/taxes
 
 


None of that negates what I said. If anything, it reinforces what I said. The taxes are going to be hard. No small business is going to want to deal with it or figure it out. Therefore the web provider that figures out how to make collecting and paying the taxes correctly easy for the small business owner is the one that will attract more small business owners. They're not legally required to do so, they're not legally required to do much of anything. Will the small business still be required to know what boxes to tick during the setup process? Maybe. And if so, that's where the business owners CPA will come in. Which I believe is more or less exactly what I said above. Small business owners don't want to do have to learn and know this sort of thing which is why they hire others to do it for them. Same as it ever was.
 
The founder of the company I work for once told me 'I don't know squat about building spreadsheets. Which is why I have people for that.'
2018/06/23 20:07:40
abacab
I can see this going either one of two ways for the small boutique shops that sell direct.
 
1. If the customer's billing address is in a state that is enforcing state sales tax collection for internet sales, they could refuse to do business in that state.  Problem solved.  Sort of. 
 
2. Use an ecommerce and payments provider to facilitate all sales transactions in the USA, such as Digital River or Amazon, or something like that.  There are probably a few that cater to small businesses.  This is probably the safest solution, but one that might put a dent in the profits or survival of those barely staying afloat.
2018/06/23 20:22:18
marled
It is very sad that the U.S. begin to make the same sh.. like Europe! In the EU there has never been a real chance for small business to trade in other countries. It is too extensive to handle all the tax and business rules and even other currencies and languages for companies with less than 50 or 100 employees. Especially for internet sellers there are a lot of rules that strengthen the market positions of the big trusts.
And the last bad decision was to tax according to the buyer's location, because this is absolutely a no go for small business here. Accounting, paying services, taxes, transportation, etc. everything is already very irksome and expensive for small companies in the EU. The last time I heard and read about a lot of people going out of business here. It is not profitable anymore.
 
Marc
2018/06/23 23:52:10
tlw
Hm.

Let’s see. The EU means a single market and customs union, many countries sharing the same currency and an integrated on-line purchase tax system.

You really think it was easier trading between European countries when you had to deal with nearly 30 different currencies, every country had its own different customs systems and there were nearly 30 different tax, duties and tariff regimes?

Not according to most people whose businesses sell and buy across the EU it wasn’t.
2018/06/24 00:13:28
DaveClark
JohanSebatianGremlin
None of that negates what I said. If anything, it reinforces what I said.



Without additional unwarranted assumptions, what I wrote does NOT reinforce what you claimed.  It doesn't necessariy negate it either, but it's not very hopeful IMO given twenty years of neglect.  I expect an increase in the number of bookkeepers and CPAs and their workload long before usable and inexpensive software becomes widespread.
 
Regards,
Dave Clark
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