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Alabama Sales Tax Article
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Taxes - And Your Online Business - Taxes Exist Online?
from:By Deb St. George, on Online Business Taxes in your Tax Preparation Guide From BusinessNewsDirectory.net
So, you want to start your own online business? Before you start designing your own website or webpage, make sure that you know all about the do’s and don’t of starting an online business and that includes the technical, financial and legal matters of the business.
When you decide to start a business, you should be aware and prepared for whatever legal or financial issues that may arise. If you think that you can escape from paying taxes by starting your very own online business, think again - your dreamy balloon may burst once you get into complications regarding taxes and your online business.
The Truth About The Internet Being A Tax-Free Zone
More and more shoppers are getting lured by online shops and retailers because of their famous tag line of "no-tax shopping". What most people don’t know is that that certain tag line used to lure online shoppers is not applicable to all states.
For you to be able to understand this concept better, here is an example: A woman from Indiana regularly purchases exotic orchids through an online shop based on Switzerland.
Since she purchases and sends her payments directly to Switzerland, she is not obliged to pay any sales tax in Indiana since her orchid supplier has all of its facilities in Switzerland.
A few months later, the exotic orchid supplier of that woman has decided to open a store in Indiana. The woman still purchases online but she already has to pay for the sales tax of the orchid since there is already a store based in the place where she is staying.
In other words, the responsibility to pay for taxes is an interdependent status between the consumer and the supplier. By that example, we can Come to a conclusion that the Internet is not really a tax-free zone. It depends on the location as well as the type of business that one is involved in.
The Responsibility To Pay Sales Tax
Admit it, nobody really loves to pay taxes. Perhaps even the rich people are irritated come tax-paying time because it is sometimes a tedious and complicated process. There are a lot of rules and laws to refer to before one can actually come to a clean calculation of the taxes that he or she must pay.
If an individual lives in a state that is known for collecting "sales tax", you are not exempted from it even though you try to escape it by making a lot of purchasing through the Internet because you are still required to pay for the "sales tax" directly to the state.
When you pay a "sales tax" directly to the state, it is no longer called a "Sales tax" but rather a "use" tax. Perhaps the only difference between "sales" tax and "use" tax boils down as to which person - the buyer or the seller - pays the state. "Use" taxes are usually used by the state to make sure that they collect the right amount of revenue on every taxable item purchased within the state borders.
There are actually still a lot of points to be discussed about taxes and online business and the points mentioned here are just what we may call "a tip of the iceberg".
In determining what’s the right thing to do in handling taxes and your online business, it would be best to go beyond researching for legal answers alone. Consulting the help of lawyers and other legal professionals would probably benefit you more than you expect.
Alabama Sales Tax News
Alabama sales collections rose 5% in January - Bizjournals.com
Alabama sales collections rose 5% in January Bizjournals.com Alabama sales tax collections rose in January for the second consecutive year, according to the state's revenue department. The Alabama Department of Revenue said sales tax collections jumped 5.3 percent to $180.6 million in January from $171.5 million ... |
Geraldine considers new sales tax collections - Times-Journal
Geraldine considers new sales tax collections Times-Journal Yonce said RDS has 25 years experience in revenue collection and serves more than 260 municipalities in Alabama. RDS collects more business tax revenue than the Alabama Department of Revenue, Yonce said. "In hard times you have to look at ways to save ... |
Alabama Bills Propose Tobacco Tax Hike - CSNews Online
 CSNews Online | Alabama Bills Propose Tobacco Tax Hike CSNews Online After reporting a 6.1-percent sales increase in 2010, convenience store retailers expect to generate increased sales and profits from their foodservice operations this year. The convenience store industry had a good year last year. |
Lawmakers waiting for details - Times Daily
 Times Daily | Lawmakers waiting for details Times Daily “I heard the governor say he would not raise a single mother's taxes,” Irons said in an email. “But I did not hear the governor say he would help the single mother by giving the single mother a tax break on sales taxes on food. Only Alabama and ... Officials say state budgets dismal; layoffs possible |
Alabama bills would raise taxes on vehicles, tags - Birmingham Business Journal
 al.com (blog) | Alabama bills would raise taxes on vehicles, tags Birmingham Business Journal Proposed bills in the Alabama House would raise the state sales tax on vehicles from 2 to 4 percent and would allow revenue-starved Jefferson County to raise vehicle-tag fees by up to 5 percent. Sponsored by Rep. Patricia Todd, D-Birmingham, ... Jefferson County lawmakers lack consensus ahead of opening session of Alabama ... Reps. Rogers, Moore announce opposition to Jefferson County unearmarking |
Alabama economy to improve moderately in 2012, according to University of ... - al.com (blog)
Alabama economy to improve moderately in 2012, according to University of ... al.com (blog) By Budd McLaughlin, The Huntsville Times TUSCALOOSA, Alabama --Growing nonfarm employment, a declining unemployment rate, and ongoing development projects across the state have economists at the University of Alabama's Center for Business and Economic ... |
Auburn council defends incentive program - Opelika Auburn News
Auburn council defends incentive program Opelika Auburn News Citizen's communications at the Auburn City Council meeting Tuesday night again turned to a discussion of the city's fledgling small business incentive program that offers rebates to businesses for making improvements that increase sales tax revenue. |