Sales Tax On Sales Made Via Internet Providers?

You read it right: a possible one in six United States online retailers could soon not only be subject to, but owe taxes on every sale made to a resident outside their state. At least, this is the hope of tax software creators, who say this would be a billion-dollar industry. And efforts made by Congress may just make this a reality; currently, the hope is for states to require online retailers earning $1 million or more per year to pay sales taxes. Those paid taxes would then be forwarded to the state from which an individual made their purchase.

Also known as the “Amazon tax” and awaiting consideration by the House after having been passed by Senate, it could be a catalyst for the industry, according to observers. Tax software providers would have to provide basic sales tax calculation and filing software for no charge if the Amazon tax becomes law. But the retailer would have to pay for items like integration, licensing and usage. Investors are currently expressing interest in the six service providers who are currently certified under a 24 state law which allows them to keep a portion of any taxes collected from purchases made via internet providers.

~Linda Schweitzer