![]() ![]() Gross receipts tax is imposed on a company’s gross sales without deduction for the firm’s business expenses, such as compensation or costs of goods sold. Although sales and use tax is imposed on the purchaser, it is generally the retailer’s responsibility to collect it. Use taxes apply to purchases made by residents outside of their jurisdiction (e.g., a Maryland resident who purchases a book from an online vendor in Arkansas). Sales or Use Tax Versus Gross Receipts TaxĪ sales tax is a levy imposed on the purchaser by a state or local government at the point of sale of goods or services. This article explains how businesses can conduct online marketplace activities in a way that avoids or minimizes gross receipts tax assessments. This is especially the case in the context of e-commerce where consistent state tax collection and remittance requirements applicable to marketplace sellers (individual vendors) and marketplace facilitators (platform providers) are just beginning to emerge. A complicating factor is the basic differences between how sales and use taxes and the gross receipts tax are generally imposed. ![]() While the case directly addresses sales and use tax collection requirements, it has since created ambiguity in how it should be applied to other types of state levies, such as gross receipts tax. Online retailers experienced a seismic shift regarding their responsibility to collect and remit sales and use taxes as a result of the U.S. What E-Commerce Site Operators Need to Know About Gross Receipts Taxes Commercial Reorganization and Bankruptcy.Valuation Services for Businesses Close Link.Valuation Services for Private Clients Close Link.Valuation Services for Alternative Investment Funds Individuals & Families with International WealthĪccounting Services for Closely Held Businesses ![]()
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