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Tax on international 'Net sales?

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F

FireHawk

Guest
From Florida...
I intend to sell downloadable software, ebooks and other 'soft' products over the 'Net, and I want to target foreign markets, eg., the UK, Canada, EU, Australia, New Zealand, etc.
Presently, is there any or additional tax I must charge/pay? If so, please tell me the procedure.
If not, what does the future look like for 'Net sales in foreign markets? Any information will be greatly appreciated. Thanks!
 


L

loku

Guest
There is no additional tax you must pay or charge for sales into foreign markets; however, you must pay federal income tax on your income from the sales.
 
L

loku

Guest
I should have mentioned that you must get a retail sales certificate from Florida. The sales out of state will be exempt, but the Florida sales will be subject to sales tax.
 
F

FireHawk

Guest
Tax on international 'net sales, cont'd

Dear Loku,
Thanks so much for this information. I didn't think about in-state sales tax responsibility, but that's certainly an issue.. in addition to (of course) federal tax liability. I appreciate you bringing this up. I have to think about how one would give evidence of in-state sales if they are only going through credit cards on the 'net. Perhaps I can include a
'Check here if you're purchasing within Florida' box
on the sales order page, and give notice that the tax (whatever %) will also be charged, prior to customer approval and completion of the sale. Do you think this will fulfill my responsibility?
Also it might be appropriate to set it up w/the merchant / bank account(s) to automatically isolate the collected tax in a separate account, and tie it to the identified numerical sales invoice. Anyway, if you think of any other system or suggestion on this I'm all ears. And I thank you again for your initial advice.
 
L

loku

Guest
I think your idea about the “check here box if you are purchasing in Florida” would probably be OK, but I am not sure. Perhaps it would be best to run that through the Florida Sales Tax people. I don’t think you need to segregate the sales tax in a separate account.
 
F

FireHawk

Guest
Thank you Loku.
I appreciate the input. I will indeed contact the Fl tax people. Re: separate account, I realize it isn't necessary, as I've had businesses (brick 'n morter) before. But when the system's in place, the $ is automatically deducted/transferred, no matter how small. For me (at least) it maintains systems and procedures that keep me legal. ..a 'no brainer' so to speak.
I prefer not to mix tax liabilities with other funds. It's not my money anyway, so best not to be tempted. It's simply a personal policy, nothing more.
Again, thank you for your input!
 

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