top | item 42125237

(no title)

tiluha | 1 year ago

Yes, depending on thresholds which vary by state. For some you have to figure out taxes from the first transaction, for others from the 100th and then there are some that consider revenue, like $100k. At least at a conceptual level, taxes in the US seem much more complex than the EU, where you have only one tax rate per country.

discuss

order

scott_w|1 year ago

I wonder if the reason it's perceived as "easy" is because companies are flying under the radar. In my experience, you get a bit of leeway until the country you're selling into starts to notice and demands you start collecting and paying sales tax. Perhaps the fact the US is split across jurisdictions internally means tax authorities don't have a very clear picture until the company gets big enough.

Either that, or more companies are using third parties who mask the complexity for them. Kinda like a duck looking serene on the water but its feet are paddling furiously to keep moving.

When you're inside a jurisdiction, you don't really have the option to ignore the law for long because the tax authorities will come knocking sooner rather than later.