VAT between US states? - GoFuckYourself.com

pigman · 07-05-2007, 08:10 PM

How does the VAT between different states in the US work?
In europe you need to pay the VAT were you are located on all EU income and no VAT on income outside EU. Same deal in states?

dissipate · 07-05-2007, 08:19 PM

It's called income tax here.

fluffygrrl · 07-05-2007, 08:26 PM

VAT (Value Added Tax) is a consumption tax not an income tax.

GatorB · 07-05-2007, 08:50 PM

Quote:

Originally Posted by fluffygrrl

VAT (Value Added Tax) is a consumption tax not an income tax.

So is he asking about sales taxes then?

pigman · 07-05-2007, 08:58 PM

Kinda found the awnser at wikipedia:
United States

In the United States, the state of Michigan uses a form of VAT known as the "Single Business Tax" (SBT) as its form of general business taxation. It is the only state in the U.S. to use a VAT. When it was adopted in 1975, it replaced seven business taxes, including a corporate income tax. On August 9, 2006, the Michigan legislature approved voter-initiated legislation to repeal the Single Business Tax. The repeal will be effective after December 31, 2007.[2]

Most states have sales tax charged to the end buyer only. Sales tax rates are anywhere from 0%-8.8% depending on the state and the municipality. The unit price tags and advertised prices on items usually do not include sales tax yet and will only be computed at the cash register when the customer pays for them. Generally, no sales tax is charged for most services. This is a major difference between sales tax levied in the United States and value added tax in other countries.

Lucky americans, in europe we need to take away VAT 13-25% on the porn earnings if they are within eu.

pigman · 07-05-2007, 09:12 PM

So the question is this =)
If someone from example Newyork buy a account at pornsite based in Texas, should the price include sales tax?

Plutonium Richard · 07-05-2007, 11:17 PM

Quote:

Originally Posted by pigman

So the question is this =)
If someone from example Newyork buy a account at pornsite based in Texas, should the price include sales tax?

A state government may only charge sales tax within its own borders. Interstate commerce is federally regulated. Therefore, the subscription fees for a Texas-based website will include sales tax only to Texas residents. There would be a note on the order form that says something like "TX residents add x% sales tax".

pigman · 07-05-2007, 11:21 PM

Thanks for the awnser.

GatorB · 07-05-2007, 11:24 PM

Quote:

Originally Posted by pigman

Most states have sales tax charged to the end buyer only. Sales tax rates are anywhere from 0%-8.8% depending on the state and the municipality.

The county I live in the sales tax totals 9.75%

GatorB · 07-05-2007, 11:25 PM

Quote:

Originally Posted by Plutonium Richard

A state government may only charge sales tax within its own borders. Interstate commerce is federally regulated. Therefore, the subscription fees for a Texas-based website will include sales tax only to Texas residents. There would be a note on the order form that says something like "TX residents add x% sales tax".

Except in online purcahes the law says the PURCHASER sends the sales tax to the state. How many do that? And only tangible things are taxed. Online memebrship is not a tangible good.

07-05-2007, 08:10 PM	#1
pigman Confirmed User Join Date: Aug 2006 Posts: 760	VAT between US states? How does the VAT between different states in the US work? In europe you need to pay the VAT were you are located on all EU income and no VAT on income outside EU. Same deal in states?

07-05-2007, 08:19 PM	#2
dissipate The Dirty Frenchman Industry Role: Join Date: Nov 2005 Location: Lost Angeles Posts: 8,904	It's called income tax here.

07-05-2007, 08:26 PM	#3
fluffygrrl So Fucking Banned Join Date: May 2006 Posts: 2,187	VAT (Value Added Tax) is a consumption tax not an income tax.

07-05-2007, 08:58 PM	#5
pigman Confirmed User Join Date: Aug 2006 Posts: 760	Kinda found the awnser at wikipedia: United States In the United States, the state of Michigan uses a form of VAT known as the "Single Business Tax" (SBT) as its form of general business taxation. It is the only state in the U.S. to use a VAT. When it was adopted in 1975, it replaced seven business taxes, including a corporate income tax. On August 9, 2006, the Michigan legislature approved voter-initiated legislation to repeal the Single Business Tax. The repeal will be effective after December 31, 2007.[2] Most states have sales tax charged to the end buyer only. Sales tax rates are anywhere from 0%-8.8% depending on the state and the municipality. The unit price tags and advertised prices on items usually do not include sales tax yet and will only be computed at the cash register when the customer pays for them. Generally, no sales tax is charged for most services. This is a major difference between sales tax levied in the United States and value added tax in other countries. Lucky americans, in europe we need to take away VAT 13-25% on the porn earnings if they are within eu.

07-05-2007, 09:12 PM	#6
pigman Confirmed User Join Date: Aug 2006 Posts: 760	So the question is this =) If someone from example Newyork buy a account at pornsite based in Texas, should the price include sales tax?

07-05-2007, 11:21 PM	#8
pigman Confirmed User Join Date: Aug 2006 Posts: 760	Thanks for the awnser.