Why single out France? The US Senate is doing exactly the same thing.
In practice, though, if people travel to another state and buy something there in a brick and mortar store, they pay the sales tax of THAT state, not their home state. So as far as I'm concerned, the same could be made to apply here. Where Internet purchases are taxed according to where the e-commerce business is headquartered.
Anyway, this is fair enough, as far as I'm concerned.
Duane, I think pretty much every state has laws on their books whereby, if I have a store in that state and I sell you something, either at that store or to a delivery address in that state, I am supposed to collect sales taxes (based on my address). Doesn't matter whether its a phone order, mail order, internet or whatever.
Further, I think most states have laws on their books whereby, if you are doing an out-of-state purchase (again, phone order, mail order, internet) you are supposed to pay your home state's sales tax on the good's purchase price.
One way or another, that sales tax is supposed to be paid.
Not sure how New Mexico handles it as I understand they have a "gross receipts tax", rather than a sales tax, the difference being that, theoretically, the seller pays the gross receipts tax rather than the purchaser.
Tax is the major revenue to any country. It is very important for countries to be able to collect them.
On the other hands, to break down the revenue into different country is a pain, imposing extra administrative cost to the company. In addition, government will have very difficult time to detect fault.
In the process of good exchange, there are 3 parties involved - buyers, sellers and credit card companies. It seems to me that getting the information from credit card companies is the most direct way to acquire the information, isn't it?
That's why there's a movement afoot to "simplify" sales tax regulations in the US if internet companies would be forced to collect them. It appears that at least Amazon is ready to capitulate to collecting sales taxes in the near future.
In the U.S. at least one state, California, has started requiring companies that have any kind of a physical footprint in the state collect sales tax for sales within California. Aside from all of the political issues, it's an incredible pain to implement. Sales tax, as used, does not lend itself to the Internet.
The state of California has a base sales tax and each city can levy additional on top of that, which has to be collected and paid to the sate. In some cases, a city may have more than one tax rate. Zip codes may have more than one tax rate. The local taxes can be changed at intervals set by the individual municipalities.
Expand that to all of the other U.S. states that levy sales taxes and to all of the countries around the world that want to collect Internet taxes, and a huge part of the computing power needed for e-commerce would need to be devoted just to calculating the tax rates.
This is very interdependent issue between freedom of expression and commerce and the need to collect taxes. What if the potential revenue gain could be tied to a national sales tax. Could not work in the states, but could be tried in other countries. Or is that too radical?
It's not even going to the parent country, kinnar. These companies register themselves in tax havens such as Luxembourg and transfer their profits there, paying next-to-nothing taxes in the process. The EU as a whole has to crack-down on this loophole.
Good Point, French Government has rightly targeted the business making use of the global environment and not being responsible to the places where they are doing businesses. In-fact every company should be responsible to the country from where they are generating revenues, instead of transferring entire chunk of the revenue to the parent country.
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