ChrisW123 Posted December 11, 2004 Share Posted December 11, 2004 Does anyone know if sales tax also applies to downloadable (or virtual) products. I would not be shipping any product at all. I believe the answer is NO TAX? Link to comment Share on other sites More sharing options...
Guest Posted December 11, 2004 Share Posted December 11, 2004 If you sell any product to customers within California (based on your location), then you need to charge California Sales Tax to them whether it is a physical CD or a downloadable product. Link to comment Share on other sites More sharing options...
Gil-Gallad Posted December 12, 2004 Share Posted December 12, 2004 I believe the answer is NO TAX? <{POST_SNAPBACK}> At Russia, for example, there is no difference - virtual or real product you sell - you must pay Taxes from the cash that you've got. And I think, that there is no difference between the countries laws too - so you must pay all taxes always if you don't want problems with your Taxman. Greeting from the elves! My Contributions Link to comment Share on other sites More sharing options...
gordoberg Posted December 31, 2004 Share Posted December 31, 2004 If I did not apply for any tax id, do not have a company (S Corporation or whatever), sell the download contents through the personal account only, and did not charge and sales tax for any sale, do I still owe the sales tax to the state? Link to comment Share on other sites More sharing options...
Guest Posted December 31, 2004 Share Posted December 31, 2004 hmmmmm, sounding like jail time to me . . . you need to have a business license and reseller tax id from the sate of california and your local city. the irs and california state board of revenue as well as the locals kinda frown on that. Link to comment Share on other sites More sharing options...
gordoberg Posted December 31, 2004 Share Posted December 31, 2004 But the ecommerce setup allows people to use personal account and social security number for business in stead of applying for a tax id with business license. This practice is accepted by many of the big eCommerce firms. Link to comment Share on other sites More sharing options...
Guest Posted December 31, 2004 Share Posted December 31, 2004 In UK you don't need a business license, but like everywhere else you need to register with the tax office at some point. So pay now or PAY later! :thumbsup: Link to comment Share on other sites More sharing options...
gordoberg Posted December 31, 2004 Share Posted December 31, 2004 Thanks for the information. In US, do I have to register with the state tax office first, or just simply fill out the tax report form and mail the check? Anyone in US has the similar situation? Link to comment Share on other sites More sharing options...
johnjr Posted January 10, 2005 Share Posted January 10, 2005 The best thing to do would be to ask these questions of an attorney who practices law in the state in which you reside (California?). I'm not an attorney, but I have been in business for myself (as a sole proprietor, then a partnership, and now a corporation) for almost 27 years. My understanding is that if you're in business (at least in the state of Missouri, and I doubt that these laws vary much between states), and you sell a product (and even a service in some states), and you do not collect, and turn in, the sales tax on that sale, then if the state revenue department finds out, they WILL come after you for those taxes that you were supposed to collect (plus interest and penalties, and in some cases, criminal charges). Here in Missouri, my understanding is that it's viewed as two separate 'obligations' - #1 collect the tax, #2 turn the tax in. If you fail to do either one (or both), you're in trouble. Most cities and counties also have requirements for business licenses. It doesn't matter if you're operating from your home, as a sole proprietor, or from a huge office as a corporation - you still MUST have a business license. There may be expections in some areas, but I've never heard of any. Again, I'm not an attorney, so don't take this as 'legal advice', but based on what I do know, I sure wouldn't operate a business (selling 'merchandise' or 'services') without at least checking with someone who knows for sure, for your state/city, what the requirements are. John Link to comment Share on other sites More sharing options...
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