Recently the state of California signed into a bill about Internet tax. According to the new law all online retailers who were operating from the state of California, required to pay taxes on their affiliate advertising. It was being discussed and debated since a long time but it grew to unimaginable proportions after the decision of government of California. Many operators were forced to leave California and start all over afresh.
It is rumored that Amazon the biggest online retailer is going to be worst hit. Earlier companies which were engaged in catalog and mail order services were sought to be under the tax net, but Supreme Court rejected it calling it unfair and discriminatory.
There are different solutions suggested for Internet tax issues, some are based on the consumer destinations where the online companies are doing maximum business. But everybody accepts that issue of Internet taxation is quite complex and there is a long way to go before any feasible solution comes out.
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October 24, 2011 at 2:04 am | Internet marketing., online news | No comment