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| | | | | Author: | cosmicray  | | Posted: | Apr 29, 2021 06:36 | | Subject: | Re: Sales Tax | | Viewed: | 57 times | | Topic: | Retail | |
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| In Retail, shonboi writes:
While it is inconvenient, many states will allow entities, who hold a valid certificate
and reason for exemption, to claim the collected tax as a credit against tax
they need to remit. It's not the correct solution, but it is a workaround.
Nita Rae
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| | | | | | | Author: | cosmicray | | Posted: | Apr 29, 2021 06:46 | | Subject: | Re: Sales Tax | | Viewed: | 57 times | | Topic: | Retail | |
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| In Retail, cosmicray writes:
| | In Retail, shonboi writes:
While it is inconvenient, many states will allow entities, who hold a valid certificate
and reason for exemption, to claim the collected tax as a credit against tax
they need to remit. It's not the correct solution, but it is a workaround.
Nita Rae
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Replying to myself ...
While the above statement I wrote is true, BL has created a catch-22 situation
here. By collecting the sales tax for state X, BL is denying the holder of a
resale certificate (in state X) the ability to collect tax, so they have no tax
to remit to claim a credit against. The only way they would have tax to remit,
is to sell the items purchased here, on a different site. And if that site collects
sales tax (for state X) the problem continues. That it encourages people buying
here to sell elsewhere, is perpetuating the problem of BL being a wholesale supply
point.
None of this speaks to entities who hold a tax exemption certificate for reasons
other than resale (e.g. schools). They have a valid reason, and need.
Nita Rae
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| | | | | | | | | Author: | 3001Bricks | | Posted: | May 6, 2021 09:21 | | Subject: | Re: Sales Tax | | Viewed: | 39 times | | Topic: | Retail | |
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| In Retail, cosmicray writes:
| | In Retail, cosmicray writes:
| | In Retail, shonboi writes:
While it is inconvenient, many states will allow entities, who hold a valid certificate
and reason for exemption, to claim the collected tax as a credit against tax
they need to remit. It's not the correct solution, but it is a workaround.
Nita Rae
|
Replying to myself ...
While the above statement I wrote is true, BL has created a catch-22 situation
here. By collecting the sales tax for state X, BL is denying the holder of a
resale certificate (in state X) the ability to collect tax, so they have no tax
to remit to claim a credit against. The only way they would have tax to remit,
is to sell the items purchased here, on a different site. And if that site collects
sales tax (for state X) the problem continues. That it encourages people buying
here to sell elsewhere, is perpetuating the problem of BL being a wholesale supply
point.
None of this speaks to entities who hold a tax exemption certificate for reasons
other than resale (e.g. schools). They have a valid reason, and need.
Nita Rae
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That is a bit of the issue. As I rarely collect tax myself anymore since the
change, I have filed a zero filing for sales tax for three months straight now.
No way for me to credit anything against zero.
I really do appreciate Bricklink taking care of all the sale tax mess, I can't
imagine myself setting up Nexusses (Nexii??) in all states to comply to the law.
But at the same time it needs to be done properly. Tax exemption, proper end
of month tax statements, etc etc.
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| | | | | | | | | | | Author: | SylvainLS | | Posted: | May 6, 2021 09:52 | | Subject: | Re: Sales Tax | | Viewed: | 41 times | | Topic: | Retail | |
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| In Retail, Gmid writes:
| | […]
That is a bit of the issue. As I rarely collect tax myself anymore since the
change, I have filed a zero filing for sales tax for three months straight now.
No way for me to credit anything against zero.
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Can’t you report a credit?
And can’t a credit be carried on until it has absorbed all the debit or the end
of the year?
And can’t a credit be redeemed at the end of the year (or even earlier)?
That’s how it works with VAT. Useful when you start and have more investments
than sales. Also useful to avoid B2B paperworks for small stuff.
| | I really do appreciate Bricklink taking care of all the sale tax mess, I can't
imagine myself setting up Nexusses (Nexii??) in all states to comply to the law.
But at the same time it needs to be done properly. Tax exemption, proper end
of month tax statements, etc etc.
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| | | | | | | | | | | | | Author: | 3001Bricks | | Posted: | May 7, 2021 09:06 | | Subject: | Re: Sales Tax | | Viewed: | 73 times | | Topic: | Retail | |
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| In Retail, SylvainLS writes:
| | In Retail, Gmid writes:
| | […]
That is a bit of the issue. As I rarely collect tax myself anymore since the
change, I have filed a zero filing for sales tax for three months straight now.
No way for me to credit anything against zero.
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Can’t you report a credit?
And can’t a credit be carried on until it has absorbed all the debit or the end
of the year?
And can’t a credit be redeemed at the end of the year (or even earlier)?
That’s how it works with VAT. Useful when you start and have more investments
than sales. Also useful to avoid B2B paperworks for small stuff.
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That's what I did back in the Netherlands, worked fine there. But that's
not something Arkansas allows. There is no such thing as credit or negative sales
tax. Exceptionally you can carry through or correct, but a credit to reclaim
paid sales tax is not an option in this state.
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| | | | | Author: | Fizdad | | Posted: | May 6, 2021 08:25 | | Subject: | Re: Sales Tax | | Viewed: | 48 times | | Topic: | Retail | |
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| Yes, I would like to know too. This is critical for my business. I have not placed
orders in months because of this and my business is down over 50%, largely due
to my inability to restock.
From a programming standpoint (I am a web programmer), this really doesn't
seem hard. My guess is that the trouble stems from having to manually process
all of these via customer service. Ebay for instance has actual people to review
and process these, and I'm not sure BL has the people set up to do this.
It's just a guess, but regardless of the reason, there are plenty of BL users
who are in a bind because of this.
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| | | | | | | Author: | cosmicray | | Posted: | May 6, 2021 08:46 | | Subject: | Re: Sales Tax | | Viewed: | 38 times | | Topic: | Retail | |
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| In Retail, Fizdad writes:
| | From a programming standpoint (I am a web programmer), this really doesn't
seem hard. My guess is that the trouble stems from having to manually process
all of these via customer service. Ebay for instance has actual people to review
and process these, and I'm not sure BL has the people set up to do this.
It's just a guess, but regardless of the reason, there are plenty of BL users
who are in a bind because of this.
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I can only speak to Florida. My presumption is that a member would have to submit
their Florida reseller (or tax exemption) certificate number. Florida DoR has
an online inquiry capability. Someone at BL would have to compare that the member
submitting that number, matches to the online records (and that they understand
this is for resale usage only). The other side of the coin is that there are
tax-exempt entities (e.g. schools) that should be able to buy without paying
sales & use tax.
For those members, who have met the criteria above, they would then need something
in checkout where the member can select 'Tax Exempt Purchase' to make
it effective (because not every purchase might be tax exempt).
Nita Rae
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| | | | | Author: | watch505 | | Posted: | May 6, 2021 09:54 | | Subject: | Re: Sales Tax | | Viewed: | 50 times | | Topic: | Retail | |
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| They held a meeting in January and "identified it as a need".
As of yesterday: "The tax exemption implementation is currently in its active
phase and is processed by our developers. Unfortunately, I do not have an exact
ETA at the moment".
They've never answered why they didn't have the foresight to have it
setup from the beginning.
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USA, Idaho
France, Nouvelle-Aquitaine
