Cards Enthusiast wrote:Hi,
I am planning my own ks campaign for playing cards and was reading a lot about things that need to be taken care of. And one thing I always encounter on blogs of ks campaigns, like the Muerto KS here in the forum, is that nobody seems to have paid any sale taxes in their ks campaigns. At least those are never listed on those blogs with all their costs. I am not talking about normal taxes from your gains, I am talking of normal VAT or sales taxes. As far as I could find on the internet everyone has to pay the sale tax in the state where he is selling his ks products in(isnt it 9% in CA right now?). I believe some states even mention this on their website specifically for ks projects. So either I am missing something here, and I would love to skip sale taxes, or these blogs that describe their campaigns are all doing it in a dangerous way.
I would love to hear any feedback about it and if it turns out we have to pay sale taxes then we probably should warn those bloggers that they might get into trouble with their postings.
ecNate wrote:Generally speaking for the USA, a retailer only 'may be' required to collect state sales tax when sold to consumer in the same state as the operator. For example, in the past when ordering from Amazon I was expected to declare this when doing my income taxes and pay at that time for internet sales where tax was not collected. Now that Amazon has a major operation in my state they now must collect tax on my purchases, but I am still asked in the tax software to declare any internet or other purchases where sales tax was not collected. I assume there are exemptions for when tax does not need to be collected by certain retailers (for example possibly when it's not an actual retailer like Kickstarter?) as well. The main point is I don't believe you need to concern yourself with US sales tax if you are from another country, but my hunch is not at all for a KickStarter situation. The way you declare your profits is the bigger issue for you.
ecNate wrote:The link you referenced I'm pretty sure makes the assumption that the person reading it is a resident of that state.
Some new proposed legislation, but to my knowledge nothing changed yet
Cards Enthusiast wrote:And you are right, it seems almost nobody is paying sales tax, but that doesn`t mean it isy right.
Mike Ratledge wrote:Cards Enthusiast wrote:And you are right, it seems almost nobody is paying sales tax, but that doesn`t mean it isy right.
Two different things, really. Sales tax is what vendors charge buyers, use tax is paid by the buyers directly to the state. Sales tax is required, although I have seen people argue that KS is not retail sales. That's true, but it doesn't escape the requirements for collecting sales tax. A state wants sales tax when money changes hands commercially. Pretty much sums it up from that perspective.
Now both are the same idea, of course. I pay use tax every year. I am one of the few.
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