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Why does the "module shop" charge sales tax?


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The law in the states is that you only charge sales tax if the company selling the product is in the same state as the customer who is buying it. If you are charging sales tax when you are not supposed to it is illegal.. actually its very illegal.

 

On another note - I purchase the "orlique" module for creating orders via prestashop-modules.com because according to the forum thread I read that was the place you should get it form.. Well, I paid for it, went through moneybookers and completed my order and never got a download. I wanted to know if that place is legitimate because if it is not I will have to go through the module store here and pay their inflated price to download it.

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The typical sales tax is called a Sales and Use tax which is collected by the seller from customers who they sell to who also live in the same state as their business is registered.

 

There is such a thing as a "use tax" in some states in which the CUSTOMER is required to pay the tax. No seller outside of the US should ever collect any type of US related tax because we all know that these sellers are not writing a check to the US government to pay that tax in.

 

Any store that collects "tax" and does not pay that tax to the government is commiting tax fraud. Any non US company that is charging a tax to a US citizen is also committing fraud by adding an additional fee to the purchase that is not being used for it's intended purposes.

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On another note - I purchase the "orlique" module for creating orders via prestashop-modules.com because according to the forum thread I read that was the place you should get it form.. Well, I paid for it, went through moneybookers and completed my order and never got a download. I wanted to know if that place is legitimate because if it is not I will have to go through the module store here and pay their inflated price to download it.

 

Hmm, not sure about that site. The actual company that makes it is prestashop-module.de, if you purchased it from them and did not get the email link then go to your order history on their site and click the item name to download it.

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Tom you are incorrect. Taxes are only for people in the SAME STATE that the US companies - so sales tax is not for ALL us companies. I should never ever pay sales tax to anyone unless their business is registered here in CT

 

As far as European / VAT taxes, when the seller is shipping (or digitally delivering) into the US the seller does NOT collect and pay sales tax and instead it rests on the shoulders of the purchase to claim it in.

 

From my accountant:

 

Goods shipped and sold to the USA from an EU country are usually zero-rated as far as your business is concerned. The US - based buyer may be liable for property tax or other taxes based on the product received but you should not be paying any type of European tax

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The US tax laws are changing all the time, companies are now required to collect tax from each state they have a store or warehouse in, not where you registered the business.

If this was the case (only where you registered the business), everyone would register their business in a remote state, and not charge anyone tax....

 

As for EU tax, I'm certainly not an expert, but as far as I know, they charge tax for everyone, if you buy something in a physical store, you pay the tax there, but in the airport, you can file some forms and get it back.

I don't know if there is a similar method to get the tax back for internet sales.

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Tom - that law of warehouse location has been around for some time.. Also, this still has no bearing on why people in the module shop are charging sales tax since there are no warehouse locations for these developers at all, so warehouse location means nothing.

 

As for EU tax - maybe its about time people charging these taxes take some time and figure out the laws because otherwise they are just overcharging customers which is really very illegal.

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