Electronic Commerce and Multijurisdictional Taxation

Nov 13, 2008 1 Replies

Rate this thread:

Adam W. 17 years ago

In electronic commerce what generally constitutes a presence for the pourpose of having to collect and or pay taxes?

Dose having owned or leased equipment in a state produce an obligation to collect sales tax from customers in that state? Dose having a local P.O. box or telephone number effect this?

If I buy data or data access from a European vendor and later resell this to a buyer in the E.U. dose VAT apply? Dose this change if I do or do not have equipment in an E.U. country? How about if the data or data access I buy is only part of a larger aggregate I sell?

Thanks in advance, Adam W.

Vote

Paul Thomas, CPA 17 years ago

"Adam W." wrote

Having employees in the jurisdiction on a regular basis does it (sending someone to a class in the next state doesn't trip it), owning or renting facilities in that jurisdiction does it, if the PO box is something ~you or your employees~ go to (not a forwarding service) will do it. The telephone number isn't sufficient to establish nexus.

Each state of taxing jurisdiction will have varying rules on what triggers nexus for tax purposes, so when in doubt, check with them.

Check with a tax accountant or tax attorney familiar with the specific country or countries involved. I suspect that'll be someone over there.

Vote

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required