Are You Ready to Pay Tax?

Are You Ready to Pay Tax?

Amazon had announced that tax collection will come into force since 1st ,Jan.2018. This act would not just happen in a few states, but everywhere in USA.

Defination of sales tax: A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the point of purchase。

For all the time, Customers only have to pay tax for products that sold by Amazon but not necessary to pay tax for those products that sold by third party merchants. But this will be changed after 1st Jan,2018,

Picrure from CNBC .https://www.cnbc.com/2017/02/01/10-more-states-will-now-collect-sales-taxes-from-amazon.html

How the tax is collect? After products are sold with tax which paid by customers, the merchants have to pay the tax to states governments by months or quarter or 6 months or year per time.

Tax collection for e-commerce have been controversial. Since e-commerce, amazon.com, ebay etc become very popular in developed countries like USA and UK. Also allowing third party store check in and set up also makes the business goes bigger. The fee of “check in” is for free. And thanks to the booming courier business. To ship a product from one side to the other side of the world seems quicky and safer.The growing number of “don’t-have-to-pay-tax”e-commercer has a great impact on the retail shop keeper or even wholesaler.

But here comes the question, if third merchants have to pay tax as the local trademan do, what would be their next advantages to stand on the ground?

By | 2017-12-08T12:06:11+00:00 December 8th, 2017|Buying Guides|Comments Off on Are You Ready to Pay Tax?

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