SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Jim McMannis who wrote (76257)10/20/1999 12:37:00 PM
From: kash johal  Read Replies (1) | Respond to of 1570918
 
Jimmy,

Re: "Dell and internet sales"

The dirty little secret with dell/gtw is that their entire profit is predicated on NOT having to charge sales tax.

If they are turly forced into charging it then look out below as they lose a major competitive advantage.

At some point the states will come after them.

regards,

Kash



To: Jim McMannis who wrote (76257)10/20/1999 3:59:00 PM
From: Bill Jackson  Read Replies (1) | Respond to of 1570918
 
Jim, In theory a company must have a presence within a state to act as a tax collecting facility. It is my understanding that Dell has a presence in some but not all states and collects tax only when it ships goods to a client where it has a presence(from within or without that state). I understand Gateway made a deal to charge all clients sales/use tax and remit it to the ship to state, but I do not know the details of this deal.
If a retailer actually charges you sales tax and they have no state presence then they must remit to that ship to state or they are committing a fraud, so I expect Dell does not hide it and quietly remit it. I know Dell ships to Toronto from the USA, but the invoice has sales tax on it because they have a repair/customisation depot here.
Of course to state governments pure thought is taxable.
I think as data bases get more extensive you will get an annual invoice from the state listing every item you bought and from where it came and how it was paid and asking you for that collective sales tax. Thees mutual deals are being negotiated between most states as we speak. The only ones that do not do it are those with no sales tax and thus no gain. NV??

Bill