The Principle of Nexus in E-Commerce Tax

2012 ◽  
Vol 8 (2) ◽  
pp. 33-48 ◽  
Author(s):  
James G.S. Yang
Keyword(s):  
The State ◽  
Sales Tax ◽  
The Internet ◽  
State Governments ◽  
Internet Commerce ◽  
Independent Contractor ◽  
Physical Presence ◽  
Financial Consequences

The volume of Internet commerce has become increasingly important in today’s economy. However, it has a sales tax problem, concerning whether the seller or the buyer should be responsible for collecting sales tax. This problem becomes more complicated when the Internet commerce crosses state borders; this situation has caused many lawsuits. Courts have ruled that an out-of-state seller is held responsible only when there is a “nexus” between the seller and the state. A place of business or employee is evidence of “physical presence” and thus constitutes “nexus.” An independent contractor is treated as employee. Website connection between two computers serving as an “affiliate” in soliciting business for a fee is deemed to have “nexus.” In recent years, many state governments enacted tax statutes that require an out-of-state seller to provide information about an in-state buyer’s name and address and product purchased. Unfortunately, it was ruled unconstitutional by the court. The seller can refuse the request without financial consequences.

What is New York’s Amazon Tax on Internet Commerce?

2012 ◽  
pp. 306-318
Author(s):  
James G.S. Yang
Keyword(s):  
New York ◽  
Web Site ◽  
New York State ◽  
The State ◽  
Sales Tax ◽  
Tax Law ◽  
Online Retailer ◽  
Internet Commerce ◽  
York State ◽  
Physical Presence

This paper examines internet commerce taxation. It concerns who is responsible for collecting sales tax - the seller or the buyer, which depends on nexus between the seller and the state. If there is a nexus, it is the seller’s responsibility; otherwise, it is the buyer’s duty. Nexus further depends on physical presence. However, in today’s e-business, the concept of physical presence has changed. Effective June 1, 2008, New York State enacted the so called “Amazon Tax Law” that an out-of-state online retailer is presumed to have nexus with New York State if it enters into a contract with an affiliate in the state to engage in soliciting businesses in the state by means of web site linkage for an annual gross receipts of more than $10,000. As such, the online retailer is required to collect sales tax from the in-state buyer. The concept of physical presence has been extended from employee or office to web site connection. This paper examines its impact.

What is New York’s Amazon Tax on Internet Commerce?

2011 ◽  
Vol 7 (4) ◽  
pp. 50-61
Author(s):  
James G.S. Yang
Keyword(s):  
New York ◽  
Web Site ◽  
New York State ◽  
The State ◽  
Sales Tax ◽  
Tax Law ◽  
Online Retailer ◽  
Internet Commerce ◽  
York State ◽  
Physical Presence

This paper examines internet commerce taxation. It concerns who is responsible for collecting sales tax - the seller or the buyer, which depends on nexus between the seller and the state. If there is a nexus, it is the seller’s responsibility; otherwise, it is the buyer’s duty. Nexus further depends on physical presence. However, in today’s e-business, the concept of physical presence has changed. Effective June 1, 2008, New York State enacted the so called “Amazon Tax Law” that an out-of-state online retailer is presumed to have nexus with New York State if it enters into a contract with an affiliate in the state to engage in soliciting businesses in the state by means of web site linkage for an annual gross receipts of more than $10,000. As such, the online retailer is required to collect sales tax from the in-state buyer. The concept of physical presence has been extended from employee or office to web site connection. This paper examines its impact.

Current Developing Trend of Sales Tax on E-Business

2015 ◽  
Vol 11 (2) ◽  
pp. 60-73
Author(s):  
James G. S. Yang ◽  
Peter L. Lohrey ◽  
Leonard J. Lauricella
Keyword(s):  
State Government ◽  
The United States ◽  
United States Senate ◽  
Sales Tax ◽  
Internet Commerce ◽  
Business Operations ◽  
State Statutes ◽  
State Income Tax ◽  
Physical Presence ◽  
State Income

This article explores the development of sales tax on e-business. It points out that the problem was rooted in the fact that the seller is required to collect and remit the tax to the buyer's state government. If the seller and the buyer do not reside in the same state, the buyer's state government has no jurisdiction over the seller, unless there is a “physical presence” of the seller in the buyer's state. A state government can require an out-of-state seller to collect sales tax from the in-state buyer only when there is “physical presence.” However, what constitutes “physical presence” can become very controversial and complex. This article discusses many court cases. As Internet commerce was incorporated into the business operations, a great many transactions were executed online. The concept of “physical presence” became even more complex, as websites and digitized products became more commonplace. A new concept of “economic nexus” has evolved under many state statutes. Now an out-of-state seller may be required to collect sales tax from an in-state buyer, regardless of “physical presence.” In 2013 the United States Senate enacted the “Marketplace Fairness Act of 2013.” This embraced the concept of “economic nexus.” This legislation could potentially end or at least greatly simplify all controversies in e-business taxation. This paper further notes that the concept of “economic nexus” may be extended to the arena of state income tax.

The Advantages and Disadvantages of Internet Commerce in China

2018 ◽  
pp. 278-290
Author(s):  
James G. S. Yang
Keyword(s):  
Value Added ◽  
The United States ◽  
Sales Tax ◽  
The Internet ◽  
Chinese Government ◽  
Internet Commerce ◽  
Tax Rate ◽  
Advantages And Disadvantages ◽  
A Value ◽  
Final Consumer

This chapter further considers the tax aspect of the internet commerce transaction, which found that the Chinese government imposes a value-added tax at a rate of 17%. The system to impose value-added is extremely complicated. The first buyer pays tax. The tax is transferred to the second buyer, so on and so forth until the last buyer. It requires detailed records. It makes the tax administration highly burdensome. On the contrary, in the United States, the sales tax rate is only 7% and is imposed only on the final consumer. There are no sales between the first buyer and the last buyer. The taxing system is much simpler than its counterpart in China.

Sales Tax Policy Interaction Among the State Governments in India

2004 ◽  
Vol 2 (1) ◽  
pp. 147-163
Author(s):  
K. R. Shanmugam ◽  
R. Sthanumoorthy
Keyword(s):  
Tax Policy ◽  
The State ◽  
Sales Tax ◽  
State Governments ◽  
Policy Interaction

scholarly journals The Disproportionate Sales Tax Compliance Burden on Small- and Medium-Sized Online Businesses After Wayfair

2021 ◽  
Vol 22 (1) ◽  
pp. 181-230
Author(s):  
Karen Kim
Keyword(s):  
South Dakota ◽  
Tax Compliance ◽  
The State ◽  
Sales Tax ◽  
Safe Harbor ◽  
Compliance Costs ◽  
High Compliance ◽  
Sales Taxes ◽  
Fairness And Efficiency ◽  
Physical Presence

Many states’ sales and use tax provisions, updated in response to the Supreme Court’s decision in South Dakota v. Wayfair, Inc., will likely impose a disproportionate tax compliance burden on small- and medium-sized businesses (SMBs) that engage in e-commerce. Relative to large companies like Amazon and eBay, SMBs cannot absorb the high compliance costs associated with tracking, collecting, and remitting taxes. Wayfair expanded states’ authority to collect sales taxes on companies without a physical presence in the state. But states should wield this power judiciously. While mimicking South Dakota’s statute (upheld as constitutional in Wayfair) may help states avoid litigation, they would better promote the goals of fairness and efficiency by exempting a larger category of small vendors from sales tax obligations. In light of the COVID‑19 pandemic, which has acutely hurt SMBs, reducing sales tax-related compliance burden would also help states provide relief to struggling SMBs. States should (1) clarify which entities are subject to the remote seller and marketplace facilitator statutes and (2) raise the de minimis safe harbor thresholds that shield smaller businesses from having to remit taxes.

Efficiency of pay for performance program on the brazilian judiciary

2014 ◽  
Author(s):  
Luis Cláudio de Jesus-Silva ◽  
Antônio Luiz Marques ◽  
André Luiz Nunes Zogahib
Keyword(s):  
Performance Improvement ◽  
Pay For Performance ◽  
Field Research ◽  
The State ◽  
Quantitative Approach ◽  
The Internet ◽  
Court Of Justice ◽  
And Performance ◽  
Compensation Program ◽  
Structured Questionnaire

This article aims to examine the variable compensation program for performance implanted in the Brazilian Judiciary. For this purpose, a survey was conducted with the servers of the Court of Justice of the State of Roraima - Amazon - Brazil. The strategy consisted of field research with quantitative approach, with descriptive and explanatory research and conducting survey using a structured questionnaire, available through the INTERNET. The population surveyed, 37.79% is the sample. The results indicate the effectiveness of the program as a tool of motivation and performance improvement and also the need for some adjustments and improvements, especially on the perception of equity of the program and the distribution of rewards.

The Munich conference of Minister-Presidents of German lands in 1947

2020 ◽  
Vol 2020 (10-2) ◽  
pp. 86-98
Author(s):  
Ivan Popov
Keyword(s):  
The State ◽  
State Governments ◽  
The West ◽  
Constitutional Development ◽  
The Moment ◽  
The One

The paper deals with the organization and decisions of the conference of the Minister-Presidents of German lands in Munich on June 6-7, 1947, which became the one and only meeting of the heads of the state governments of the western and eastern occupation zones before the division of Germany. The conference was the first experience of national positioning of the regional elite and clearly demonstrated that by the middle of 1947, not only between the allies, but also among German politicians, the incompatibility of perspectives of further constitutional development was existent and all the basic conditions for the division of Germany became ripe. Munich was the last significant demonstration of this disunity and the moment of the final turn towards the three-zone orientation of the West German elite.

THE ROLE OF THE STATE IN INTERNET GOVERNANCE. PROBLEMS AND PROSPECTS

2020 ◽  
Vol 1 (5) ◽  
pp. 26-32
Author(s):  
N. S. FILATOV ◽  
Keyword(s):  
Sustainable Development ◽  
Sustainable Development Goals ◽  
The State ◽  
The Internet ◽  
Internet Governance ◽  
State Management ◽  
Governance Model ◽  
Role Of The State ◽  
Development Goals

The article is devoted to the study of the concept of the Internet governance model with the participation of stakeholders and its impact on business in regions and countries, as well as to the discussion of sustainable development goals related to Internet governance. Examples of how enterprises suffer from state management methods in this area are presented.

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