Blog Posts
Sales Tax, Restocking Fees and Refunds
Sales and use tax is complicated enough. Ecommerce shops have to determine whether they have a nexus in all the states they ship to, keep track of sales tax holidays for those states and figure out the complexities of a state’s sales tax exemption rules. However, what happens to the sales tax when a customer returns an item, especially if the vendor charges restocking fees? Here is a look at what retailers need to keep in mind when these actions take place. According to Sales Tax Support, sales tax is a “tax imposed by state and local jurisdictions on retailers… Read More
How the Remote Transactions Parity Act Would Affect Ecommerce Retailers
This June, a new bill has been introduced to Congress called the Remote Transaction Parity Act (RTPA) by Rep. Jason Chaffetz, a Representative out of Utah. If passed, this bill, H.R. 2775, will make it easier for states, cities and districts to collect sales and use tax on remote purchases. Chaffetz claims that this bill will “promote states’ rights,” since it would take effect in every state. Chaffetz has gotten strong support from the National Retail Federation, the world’s largest retail trade association for this bill, which has been brought to the table with bipartisan support. It is similar to… Read More