I just ordered my phone from HTC's site. I was quite surprised to see I got charged tax on my order.
According to US law, they can only charge tax in states where they physically have a presence. In looking at their e-commerce partner, DR Globaltech, they only have physical locations in CA, WA, MN, and PA.
Given that I live in Maryland, how can they charge me tax? It's not like I bought it thru the carrier our anything like that.
Anyone else experience this?
Sent from my HTC One_M8 using XDA Free mobile app
I had to pay too... I think everyone does if I'm not mistaken
Some states have enacted taxes on internet purchases regardless of business location.
Paid $648.42. I wish $599 could have been the MSRP.
at least shipping is free.
Mine isn't one of them.
Sent from my HTC One_M8 using XDA Free mobile app
I'm not sure how it works.. Because as far as im aware, they shouldn't be charging any taxes. But I had the same thing when i ordered my moto last year.
Ajfink said:
Some states have enacted taxes on internet purchases regardless of business location.
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This doesn't answer the original question, but technically, the issue is whether they can force the company to collect sales tax, not whether they can impose it. Paying sales tax is the obligation of the purchaser of the product not the seller. If a company has a physical presence in the state, the state has jurisdiction over the company and can require them to collect the tax and pay it on behalf of the purchaser. If there is no presence, the state can't force them to collect the tax, but the company can do so voluntarily. Even if they don't, the purchaser still is obligated to pay the tax and the state can charge you with tax evasion if you don't and collect the tax plus interest and penalties. This is why, from time to time, states have sued out of state companies to get their records of sales into the state. In many states, you are expressly required to include on your income tax return the value of any internet purchases made in the year on which you didn't pay sales tax and pay it then. If you don't, they can go after you for failing to report as well as failure to pay the tax.
robsw said:
This doesn't answer the original question, but technically, the issue is whether they can force the company to collect sales tax, not whether they can impose it. Paying sales tax is the obligation of the purchaser of the product not the seller. If a company has a physical presence in the state, the state has jurisdiction over the company and can require them to collect the tax and pay it on behalf of the purchaser. If there is no presence, the state can't force them to collect the tax, but the company can do so voluntarily. Even if they don't, the purchaser still is obligated to pay the tax and the state can charge you with tax evasion if you don't and collect the tax plus interest and penalties. This is why, from time to time, states have sued out of state companies to get their records of sales into the state. In many states, you are expressly required to include on your income tax return the value of any internet purchases made in the year on which you didn't pay sales tax and pay it then. If you don't, they can go after you for failing to report as well as failure to pay the tax.
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I did an online chat raising the same issue with them and they simply said they are required to charge tax. I agree that something is fishy though. I live in Pa. and I don't think HTC has any presence in Pa. that would obligate them to collect tax.
yeah i dont understand it either. get $100 off only to have to pay almost $50 in sales tax.
svengalis said:
yeah i dont understand it either. get $100 off only to have to pay almost $50 in sales tax.
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Mine was only 34, but I agree, of course I'd rather not pay for it.
It is because HTC isn't shipping the phone, they use a 3rd party company for their supplier. Can't recall the name of it off the top of my head. But if "they" have a storefront in your state, then you get taxed.
weidnerj said:
It is because HTC isn't shipping the phone, they use a 3rd party company for their supplier. Can't recall the name of it off the top of my head. But if "they" have a storefront in your state, then you get taxed.
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I mentioned the supplier and where their locations were in the country. Since they have an office in Pittsburgh, it makes sense tax is charged in PA.
It's one thing if they have to collect it legally. Otherwise, they just may be pocketing it.
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Superguy said:
I mentioned the supplier and where their locations were in the country. Since they have an office in Pittsburgh, it makes sense tax is charged in PA.
It's one thing if they have to collect it legally. Otherwise, they just may be pocketing it.
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This has been mentioned already but It's because they're internet orders and just like Amazon they're required to collect the tax for 45 states.
It has nothing to do with storefronts or brick and mortar retail operations (traditional Nexus).
EDIT: Taken from https://en.wikipedia.org/wiki/Marketplace_Fairness_Act This passed the Senate May 6, 2013
"The federal government has considered legislation--the Marketplace Fairness Act of 2013--that would affect large online retailers and how online sales taxes are collected in all states. The proposed federal law would allow states to require sellers not physically located in their state to collect taxes on online and catalog sales made to people in their state. Sellers that make $1 million or less in annual sales and have no physical presence in the state would be exempt from this requirement. States would have to meet certain criteria to simplify their sales tax laws and make sales tax collection easier before they could require sellers to collect the tax. "
This bill was reintroduced in 2015.
Residents of the 45 states with sales and use tax must pay tax on their online purchases. However, according to the Supreme Court rulings in National Bellas Hess v. Illinois (1967) and Quill Corp. v. North Dakota (1992), retailers, including catalog and online sellers, only need to collect sales and use tax for states where they have a physical presence (This is traditional Nexus).
If an online retailer does not collect sales tax at the time of purchase, the consumer must pay the use tax due directly to the state. While business compliance with use tax filing is quite high, consumer compliance is rather low. <--- In other words HTC and others collect taxes to be compliant because consumers are generally not reliable enough to be compliant. This is practical application in compliance preparation for potential changes in the law.
The Marketplace Fairness Act seeks to increase compliance and tax collections by shifting the responsibility for payment from consumers to retailers.
weidnerj said:
It is because HTC isn't shipping the phone, they use a 3rd party company for their supplier. Can't recall the name of it off the top of my head. .
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Digital River
In Florida, I have never paid taxes for internet orders on Amazon -- There have been a few special scenarios however. So I'm not surprised.
Looks like this is a gray area. Only 4 states require taxes on sales bound for other states where they have no physical presence. DR and HTC don't appear to be in any of them.
While not required, more sites are collecting taxes than before. Amazon was noted as an exception for not doing it.
Of course I'm screwed since Amazon set shop in Baltimore up.
http://www.sales-tax.us/online-sales-tax
Personally, I'd rather them not collect it.
Sent from my HTC One_M8 using XDA Free mobile app
datafoo said:
This has been mentioned already but It's because they're internet orders and just like Amazon they're required to collect the tax for 45 states.
It has nothing to do with storefronts or brick and mortar retail operations (traditional Nexus).
EDIT: Taken from https://en.wikipedia.org/wiki/Marketplace_Fairness_Act This passed the Senate May 6, 2013
"The federal government has considered legislation--the Marketplace Fairness Act of 2013--that would affect large online retailers and how online sales taxes are collected in all states. The proposed federal law would allow states to require sellers not physically located in their state to collect taxes on online and catalog sales made to people in their state. Sellers that make $1 million or less in annual sales and have no physical presence in the state would be exempt from this requirement. States would have to meet certain criteria to simplify their sales tax laws and make sales tax collection easier before they could require sellers to collect the tax. "
This bill was reintroduced in 2015.
Residents of the 45 states with sales and use tax must pay tax on their online purchases. However, according to the Supreme Court rulings in National Bellas Hess v. Illinois (1967) and Quill Corp. v. North Dakota (1992), retailers, including catalog and online sellers, only need to collect sales and use tax for states where they have a physical presence (This is traditional Nexus).
If an online retailer does not collect sales tax at the time of purchase, the consumer must pay the use tax due directly to the state. While business compliance with use tax filing is quite high, consumer compliance is rather low. <--- In other words HTC and others collect taxes to be compliant because consumers are generally not reliable enough to be compliant. This is practical application in compliance preparation for potential changes in the law.
The Marketplace Fairness Act seeks to increase compliance and tax collections by shifting the responsibility for payment from consumers to retailers.
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amazon does not collect tax on all purchases and the only reason they tax me sometimes now is because they put a distribution center here a few years ago.
ive also ordered from ebay and other online retailers that have not collected taxes on my purchases.
svengalis said:
amazon does not collect tax on all purchases and the only reason they tax me sometimes now is because they put a distribution center here a few years ago.
ive also ordered from ebay and other online retailers that have not collected taxes on my purchases.
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Yeah I get that about Amazon, I was super tired and not communicating well and tried to edit my post but wasn't very clear.
As for other vendors, just because they don't charge doesn't mean they shouldn't charge.
What I'm trying to say is HTC is carrying the burden of tax compliance for customers.
If a person want's to see if they're charging tax inappropriately; someone from Oregon, Montana or the other 3 states that don't have sales tax would need to check if they were charged tax on their orders. Because of the burden of compliance HTC is carrying, they're doing everyone a favor by removing the burden of tax compliance from the consumer for the 45 states that do have sales tax.
As previously stated by others if you live in a state with sales or use tax, as a consumer you're required to account for any appropriate tax if not charged by the vendor ie: consumer carry the burden of tax compliance.
Superguy said:
I mentioned the supplier and where their locations were in the country. Since they have an office in Pittsburgh, it makes sense tax is charged in PA.
It's one thing if they have to collect it legally. Otherwise, they just may be pocketing it.
Sent from my HTC One_M8 using XDA Free mobile app
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If they are pocketing it then it is illegal. If any company collects a tax they must hand it over to the state.
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If there is anybody who is interested in parts for OnePlus One, i have MotherBoard for sell. I can send MotherBoard everywhere.
Just PM or write here in this topic. Thanks
whats the price tag of that motherboard and how much would shipping to slovakia cost?
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7. Do not spam, sell or trade on the forums.
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