Sales Tax

Discussion in 'Bulk Reef Supply' started by CJS80, Jan 13, 2019.

  1. Jomama

    Jomama Marine fish monthly R2R Supporter

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    I thought Nevada and Washington don't have sales tax.
     

  2. mtdaly85

    mtdaly85 Active Member

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    Just give it time. I’m in this industry (tax CPA) and the Wayfair decision is (and will) change the landscape for businesses conducting interstate commerce.
     
  3. Sleepydoc

    Sleepydoc Well-Known Member

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    I can't say if everyone is, but other sites already are.
     
  4. Frogger

    Frogger Active Member

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    Actually in Canada this is not true. If you buy from out of province you only pay the federal tax not the provincial tax for other provinces. So there is no extra work for the mail order company. It would be an accounting nightmare if all small business had to start charging provincial sales tax. As a small business I already spend way too much of my time calculating out my local taxes, the last thing I want to do is have to calculate out the taxes for other provinces and send them payment every month.

    This is going to be an accounting nightmare for mail order companies in the US that will now have to calculate out the sales tax for 28 different states (some states are 5% some are 8.5% etc etc.) and send the money to each these states every month. The only people that are going to benefit from this are the accountants that get paid by the hour. I could see some mail order companies saying we don't ship to your state to avoid the hassle if they do not have many customers from that state.
     
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  5. Frogger

    Frogger Active Member

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    Washington charges I believe 8% sales tax. They have been doing it for mail orders for quite some time. I got a wake up call when I made a purchase from BRS for 10% off the whole order in September only to have them charge me and 8% Washington sales tax. I have a Post Office Box in Washington. The next order I made I had them send it direct to Canada, it was almost cheaper in the end they only charge 17% tax on Canadian orders.
     
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  6. alton

    alton Well-Known Member R2R Supporter R2R Excellence Award

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    Frogger is tax always that high or only when you buy from companies in The United States?
     
  7. Frogger

    Frogger Active Member

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    BRS charges Canadians a flat rate 17% to cover brokerage fees and duties (Canadian Taxes) thru UPS each company is different and most companies do not ship to Canada. Which is why I have a US post office box in Washington State. Theoretically I should be paying Canadian Taxes (BC taxes at 12%) at the border when I bring goods in, however if it is less then a couple hundred dollars the Canadian customs usually doesn't bother.

    This is why the extra 8% for taxes shipped to Washington tagged on to the 12% at the border makes it cheaper to just ship straight to Canada especially when spending more than a couple hundred dollars.
     
  8. Reef Box

    Reef Box Active Member Build Thread Contributor

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    So for CA our BRS points won't even cover our taxes. Thats a serious bummer! for us and for BRS
     
  9. Sleepydoc

    Sleepydoc Well-Known Member

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    The thing you need to remember is that when you bring new goods into a country, you're required to report them. Private individuals can usually get by with a small amount of stuff, but a company does not have that luxury. They have to play by the rules 100% of the time or face big penalties. On top of that, shipping internationally and dealing with customs is a pain (and an expense,) which is why many companies don't do it at all.
     
  10. Billldg

    Billldg Going off the reef end R2R Supporter R2R Excellence Award Partner Member 2019 Hospitality Award Build Thread Contributor

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    For people that r paying taxes on website orders dont feel bad, it's coming for everyone else. I am known as a @Bulk Reef Supply fanboy, pretty much bought everything from there. Then they started to charge taxes for the state of GA, so I switched to Marine depot. Well, roughly 2 to 3 weeks later they also started to charged taxes. Point is that the states see a way to make money, and they WILL get their share of the money. It will happen to every state eventually.
     
  11. ROB_310

    ROB_310 Member

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    No sales tax in CA yet...just placed a BRS order. When is this supposed to start?

    Additionally, as a consumer, Im always looking for the no tax, free shipping deals online. I do find that alot of shops, be it LFS or any other shop, will waive the tax if you come off as a chill person and pay cash.
     
  12. Reef Box

    Reef Box Active Member Build Thread Contributor

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    I just put an ATO in my cart last night and when I started to check out I noticed tax was added
     
  13. Mscott

    Mscott Member

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    I order alot of parts for the hot rods online and was shocked on Ebay when one company charged me sales tax. I called them and they explained to me the new rules and my satate was on the list
     
  14. Frogger

    Frogger Active Member

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    That is the nice thing about BRS they do all the legal work and all the taxes/duties are included in the 17% when they ship to Canada. They still charge shipping (free shipping does not apply) which you also have to take into consideration. I have a postal box in Blaine Washington. However BRS charges I believe 8 or 9% state tax on all shipments. And then I still have to deal with Canada Customs. If I do not buy a lot they are usually good.
     
  15. hatfielj

    hatfielj Valuable Member Build Thread Contributor

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    I think you're right. I will certainly just buy locally now. Why wait for an online order to arrive if I could just drive up to my LFS and buy? I guess this law has an unintended consequence that will be good for the LFS but bad for online retailers?
     
  16. Titleist

    Titleist Active Member

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    Always worth supporting the LFS especially if you're paying the same since you get the personal service and there's an investment in your purchase by the retailer in terms of that service.

    On the other hand, once you get going with BRS the reward system puts you pretty close in cost in my case as sales tax here is 5.5% The difference being an extra .5% from BRS, and that you have to wait for delivery although again, I'm close so I get everything in 2 or less days.

    And I can't ignore all the valuable videos I've watched and used to expand and update my knowledge of reefing. I know they make a better buck with volume buying that my LFS doesn't get and that's another reason to go LFS, to keep them employed and keep a local resource.

    One way or the other, I'm still spending money.
     
  17. WWIII

    WWIII Valuable Member R2R Supporter R2R Excellence Award Build Thread Contributor LMAS Member

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    I haven't made a purchase from BRS since the tax has been collected. I think most sites will just release coupons and discount codes to offset the tax, if they ever decide to follow the law.

    I feel bad for all the online retailers. It has to be a pain in the you know what to pay all those states individual sales taxes every year.
     
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  18. CJS80

    CJS80 Active Member Partner Member 2019 Hospitality Award

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    It is going to be bad for individuals too. The stores that don't charge tax will have to send statements to individuals so that they can pay tax on it themselves.
     
  19. smartwater101

    smartwater101 Active Member R2R Supporter

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    To be fair, you were supposed to be keeping track and paying those taxes at the end of the year. No one really does this though, wich is why more and more companies will be required to collect.

    We all got away with ignoring the requirement for a looooooong time so it's not suprising we're finally having to pay up.
     
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