Just got notice of a download (living in TN) and noticed sales tax added to the prepub order. Is this new? Mistake? Since when?
Thanks for any insight or experience . . .
I am in Oklahoma and did not get charged any tax on November 8th so I doubt it is a Bellingham tax. I bet it is a new tax in Tennessee.
Looks like a new Tennessee tax. Logos is probably required to collect it when selling to TN users, though it may be voluntary. Looks like if they don't, you would be required to file a special tax return to pay it anyway, so they're saving you the trouble. [;)]
http://www.knoxnews.com/news/2013/may/19/tennessee-congressmen-struggling-with-internet/
http://tn.gov/revenue/faqs/salesandusefaq.shtml#16
http://www.nashvillescene.com/pitw/archives/2012/04/25/amazons-tennessee-customers-will-probably-get-right-on-paying-this-tax
Logos has always charged me tax in Texas, and I work for a 501(c).3, which isn't supposed to pay taxes. But Logos said it had to collect the tax anyway, so I pay it.
You could probably apply to Texas for a refund of the tax, if you end up paying enough in any given year for it to be worth the trouble.
Yes. When I bought Logos initially, and my first few big packages, it would have been worth the trouble. But I don't buy that much anymore, so I doubt it is.
Here in Scotland we don't have to pay tax (VAT aka Value Added Tax) at present on software/e-books that we buy from overseas websites, unless the vendor company has a physical presence in the United Kingdom of Great Britain and Northern Ireland (aka UK). [:D]
However, that is going to change in a short time according to HMRC (Her Majesty's Revenue and Customs). As I understand it, in 2015 we shall have to pay 20% VAT on all online purchases from wherever they are purchased outside the EU (European Union). (Within the EU we shall pay as we do presently the rate of VAT charged by the country where the website is based.) [:'(]
It has taken governments some time to respond to the rise of online shopping, but they are finally beginning to plug the gaps in their tax-revenue streams which the internet has opened. Ah well, all good things must come to an end.[:(]
Every blessing
Alan
Here in Scotland we don't have to pay tax (VAT aka Value Added Tax) at present on software/e-books that we buy from overseas websites, unless the vendor company has a physical presence in the United Kingdom of Great Britain and Northern Ireland (aka UK). However, that is going to change in a short time according to HMRC (Her Majesty's Revenue and Customs). As I understand it, in 2015 we shall have to pay 20% VAT on all online purchases from wherever they are purchased outside the EU (European Union). (Within the EU we shall pay as we do presently the rate of VAT charged by the country where the website is based.)
Here in Scotland we don't have to pay tax (VAT aka Value Added Tax) at present on software/e-books that we buy from overseas websites, unless the vendor company has a physical presence in the United Kingdom of Great Britain and Northern Ireland (aka UK).
However, that is going to change in a short time according to HMRC (Her Majesty's Revenue and Customs). As I understand it, in 2015 we shall have to pay 20% VAT on all online purchases from wherever they are purchased outside the EU (European Union). (Within the EU we shall pay as we do presently the rate of VAT charged by the country where the website is based.)
Would it help if Logos opened an office in Ireland? I volunteer to go there. [:D]
Recently had occasion to review North Carolina sales tax law in regard to non-profit organization. Merchants are required to collect all applicable taxes on every customer. The non-profit can then apply for a refund.
Some of us fondly refer to our homeland as North Taxolina [:D]
You might work for a 501(c)3, but they don't buy the resources, you do, and they stay with you. Even if they're for your ministry, they are your personal property. At least that's how I understand how this works.
Logos has always charged me tax in Texas, and I work for a 501(c).3, which isn't supposed to pay taxes. But Logos said it had to collect the tax anyway, so I pay it. You might work for a 501(c)3, but they don't buy the resources, you do, and they stay with you. Even if they're for your ministry, they are your personal property. At least that's how I understand how this works.
That is a good point. I had not looked at it that way. Would this be the case if the resources were purchased with a book allowance? Is it because the resources are licensed to an individual?
Logos has always charged me tax in Texas, and I work for a 501(c).3, which isn't supposed to pay taxes. But Logos said it had to collect the tax anyway, so I pay it. You might work for a 501(c)3, but they don't buy the resources, you do, and they stay with you. Even if they're for your ministry, they are your personal property. At least that's how I understand how this works. That is a good point. I had not looked at it that way. Would this be the case if the resources were purchased with a book allowance? Is it because the resources are licensed to an individual?
I'm not a tax lawyer, and sales tax law varies by state/locality. but my understanding is that if the non-profit isn't the agent doing the purchasing, then I it's taxable. I would also expect that if the non-profit purchased it and gave it to an individual to do their work, then it would be subject to income tax, since it's a form of compensation. The pertinent question is: who retains ownership, the non-profit or the individual?
Expenses related to book allowances are not subject to income tax, or book expenses (directly related to one's work) can be deducted as professional expenses. But that's at the federal not the state or local level.
Navigating these waters for clergy in the US is quite daunting. I've been using a tax professional, who understands the special tax laws related to clergy, to help me the last few years. I recommend the same.
My father and brother are pastors. They attend special tax seminars for clergy just to keep up with all the changes. Church boards should do the same to stay out of legal trouble.
But that's at the federal not the state or local level.
I had not considered the difference. That makes all this twice as bad. [:(]
As I understand it, in 2015 we shall have to pay 20% VAT on all online purchases from wherever they are purchased outside the EU (European Union).
It's true that the EU has made up that rule, but they have no authority to implement it. The EU has no jurisdiction over Logos, and because VAT is payable by the supplier, not the customer, they can't force us to pay, either.
Considering that electricity and Internet use is taxed, Logos users have always been taxed. But don't worry. The government is here to help find another reason to add more.[:(]
As I understand it, in 2015 we shall have to pay 20% VAT on all online purchases from wherever they are purchased outside the EU (European Union). It's true that the EU has made up that rule, but they have no authority to implement it. The EU has no jurisdiction over Logos, and because VAT is payable by the supplier, not the customer, they can't force us to pay, either.
This is not strictly true, you should also pay tax if you import which could cover the end user downloading electronic books.
Can get worse when you are assessed $11 tax on a purchase plus a $20 flat fee to the assessor. Becomes the type of pain with several purchases a month that can make a Book Cache subscription feel worthwhile...... provided that came with only one invoice per month to cover all the purchases.... same type of problem with overseas shipping fees on merchandise from Bellingham.... [:(]
However, that is going to change in a short time according to HMRC (Her Majesty's Revenue and Customs). As I understand it, in 2015 we shall have to pay 20% VAT on all online purchases from wherever they are purchased outside the EU (European Union).
Considering that electricity and Internet use is taxed, Logos users have always been taxed. But don't worry. The government is here to help find another reason to add more.
The scariest words in the English language: "I'm from the government, and I am here to help you" (Ronald Reagan—probably a loose quote)
Can you imagine the tax on the new Eerdman's Bible Reference Bundle?
$2879.95 @ 8.5%
Actually quite a number of states have requirements to pay sales tax on internet purchases. Collection by the seller is a convenience; so in theory (going back to the moral/honest/religious discussion), all the Christians, I'm sure in those states, are busily paying their internet taxes.
Here AZ, the minute Bob sniffed out a couple of unemployed Mac developers in Phoenix, that question became moot.
