Welcome to America Everyone!
Time to break out the taxes again. It’s time to start thinking about how you’re going to tax your customers for online orders not in the states of Oregon or Delaware. If you don’t start thinking about it now, you’re going to come under some heft taxes you’ll have to pay out of pocket…
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Now, I don’t care to talk about if it’s right or wrong, or it’s just how we’ve always done it or not, I’d prefer to talk about a tax reform. Let’s drop all the silly rules on taxes, and just go with a flat tax. Let’s drop the income tax, the property tax, etc, and just do sales tax.
It seems funny I know, but if we do a flat / only sales tax then we tax everyone, including the drug dealers, and smugglers… We should all have to pay taxes, not just some of us.
So yes, taxes on internet sales would be included… But Let’s DROP the complex tax rules and go with something simple, a flat tax. Did you know that in California you have to tax at the county level for where you SHIP your product to? And did you know that a product might be taxed in one state, but not another?
To manage all of this, you have to buy an expensive tax management system and configure your products into it. It’s pretty complex solution. Summer 2011 my employer had to implement for the US.
I work for an international company, and as an US Minded person, VAT is a difficult concept to understand, but after learning about all the different tax rates in the US, I’d go for the European FLAT tax rates!