Quote:
Originally Posted by tartuffe
There are over 41,000 zip codes and if you search the web there are FREE spreadsheet databases that tie zip code into sales tax rate for that zipcode. Any local computer guy could customize that database to tie into your accounts payable/receivable database for less than what you pay for your general accounting software.
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Not so easy. Tax jurisdictions are not as simple as zip code. In some locales there are state, county, city, parish, school district, etc, etc taxes to collect.
Sometimes the defining line can be the even/odd side of the street.
Even if you have software to calculate the tax (and there are providers licking their chops hoping) the issue of remittance and auditing is huge. Suppose someone from Illinois places a ten dollar order with a New Hampshire company? New Hampster (Live Free or Die) doesn't have a sales tax. Illinois has state tax, county tax , local tax, etc... We are talking pennys of tax due but the seller needs to keep track of what jurisdiction is due what. How often does each tax jurisdiction want to get paid? Some monthly, some quarterly? What if any jurisdiction thinks an online seller is under reporting? Can a county in Peoria audit a seller in New Hampster?
The obvious solution would seem to be a Federal agency to act as a clearing house to make reporting and remittance simpler.
Do you see where this is going?