Sales Tax Digital Products-WA State

[seriousmny]

I was just watching the news and they (WA State) will begin collecting sales tax on Internet download sales in WA state. In live in the Seattle area. How does that affect me? I know Amazon is located here so am I in danger of being cut off from them as an affiliate? Does this apply to products we create ourselves and sell online? I am not understanding this. I then went online and found this: Digital download tax hits home, my home. Sales Tax Buzz Blog. Can someone clarify this for me?

[Jay Jennings]

Looks like the people in Washington State think digital downloads should be taxed. If they don't like it, they can stop electing people who are pro-tax.

From what I read it appears you will have to collect sales tax on your digital products starting July 26 of this year.

Check with your friendly neighborhood accountant to make sure.

And don't vote for pro-tax morons.

Jay Jennings

[solotr]

I just read the way this thing is going to work, and I too live in Washington and affiliate of Amazon. From what I understand taxes will be collected based on the location of the buyer, not the location of the seller.

Amazon always charged me sales tax on my personal orders, I simply figured it was because I'm a WA resident.

[Don Schenk]

Originally Posted by seriousmny

Does this apply to products we create ourselves and sell online? I am not understanding this. I then went online and found this: Digital download tax hits home, my home. Sales Tax Buzz Blog. Can someone clarify this for me?

I would assume it will apply to digital product you sell through your own site. You will need to get it clarified by the state's tax department.

Unfortunately the tax departments of states all across the country are seeing this as an additional source of funds. Once a "bad" law starts in one state, it seems to have the tendency to spread to other states in short order.

I've had an Ohio vendors license since 1970 and have had to collect sales tax on every in-state sale. If I sold it out of state and shipped it, the sales tax was the responsibility of the buyer in their own state.

When selling information products to in-state customers I've always had to add sales tax. I suspect we will all eventually be adding tax to all sales. Just include the tax in your price, and send the state its money every month.

It's really not difficult. Well at least it wasn't difficult here until this past January when the Ohio Department of Taxation decided to make it all electronic - no more mail-in the sales tax each month.

Instead they now have the most confoundedly confusing website system for us to use to pay online. Maybe someday I'll become accustomed to it, but for now, each month I have to go through my long list of instructions just to send them their dollars.

I'll bet the guy or gal who designed that site is a state employee and has never had to use it.


:-Don

[MikeCollins]

This happened in NJ not so long ago. It just means you have to collect sales tax on digital sales to people who live in your state. Its kind of a pain...just more hoops to jump through to make a living.

[pcpupil]

Theres 3 things that come to mind to do.
1-dont sell the products in your state,sell outside of state only.How many in sales do you have anyway.
2--Tell the person or have a note on your site that anyone that wants one shipped by cd or dvd,send you a money order.Then send them the product.No trail.
3---Pay the sales tax.But make sure you save and use any biz expense you possibly can.For instance,my cell phone bill is tax deductable.Pay your taxes when the state wants you to.Ive been in a couple states where its quarterly,then one or 2 that was yearly.Just take your gross,subtract your deductions,then pay taxes on the rest,simple.[for your instate sales].
I know of one person that was doing this on ebay.For the same reason.
The state wanted them to get a biz license,then an office that wasnt in there home[different physical addy].Then pay there taxes on an estimated scale.If there was anything left over they where reimbursed,or it was carried forward.

[seriousmny]

Thanks for all the answers to my question about taxes. Boy, it seems like when things hit the fan..it's always another tax. I'm paying enough taxes as there is already. But I digress, I have to stay positive. I am happy to be in America, one of the best places on earth and grateful to have the opportunity to even be able to have the right to the pursuit of happiness through starting my own business. I am just going to take those taxes out and act like the cash doesn't exist. I don't have time to whine, just need to put the nose back to the grindstone and get it done.

Thanks again