how do i charge just one flat tax rate

[rohitsax]

hi!

I have customers registering from various countries. I understand the tax rates are based on the address provided at the time of registering.

How can I charge one flat charge for anyone who registers? And that it has no connection to zones etc?

thanks and regards
Rohit

[Merlinpa1969]

Ummm you dont...
You can only charge sales tax to anyone from a state that you actually have a physical presence in.

[rohitsax]

So if you were operating an online shop in the US and were selling to someone say from England - you wouldn't charge any sales/service tax?

I have this business in India and will have customers from India and a variety of other customers including some in the US. And I believe I have to charge sales/service tax to them also.

Does this mean I have to setup all of the different countries of the world in the 'tax zone' thing. Or have I got it all wrong?

[Merlinpa1969]

No I would only charge folks in the US, and then only people in PA and in TX sales tax.

I have physical locations there.

You would only charge sales tax to those in India.... but more than likely only people in a certain geographical location.

For the sales tax usage and collection rules you need to contact your local comptroller. ( the person that you got your sales tax and usage permit from )

[Paul Robinson]

So if you were operating an online shop in the US and were selling to someone say from England - you wouldn't charge any sales/service tax?

That is correct. If you ship to them anywhere except the state(s) you operate in, you are not required to pay tax on sales to them, thus you can choose not to collect tax from them. Except for exempt organizations, you can always volunteer to collect and remit tax even for customers you're not subject to tax on sales to. Since not collecting tax on sales you're not required to pay is an advantage for a mail-order business, that is the usual practice.

I have this business in India and will have customers from India and a variety of other customers including some in the US. And I believe I have to charge sales/service tax to them also.

Unless your business is in India I would presume you only need to collect tax for those whom you ship to somewhere else in India. I've bought stuff from websites in the U.K. and they don't charge me VAT since I'm in the U.S. and not subject to UK or EU sales tax (if there is an EU Sales tax). But I have no idea how the Indian Goverment rules on international sales; you need to check with them. If they're consistent they probably don't charge sales tax on sales where the item is shipped out of the country.

Does this mean I have to setup all of the different countries of the world in the 'tax zone' thing. Or have I got it all wrong?

You would need a zone for each area you have a presence in. If you operate in India and the national government imposes sales tax then you need one there. If the subdivisions of India - state, province, etc. - have local taxes then you also need one for each subdivision that you have a physical presence within. If you have a physical presence in the U.S., you need a zone for each state or territory that you have a presence within. There are a very narrow class of items that there is a federal sales tax on (phone service and tires, I think) as almost all sales taxes in the U.S. are state-based.

[Paul Robinson]

Ummm you dont...
You can only charge sales tax to anyone from a state that you actually have a physical presence in.

That is not correct. You are only required to pay tax on sales you make where the goods are delivered in the same state. You are permitted to collect tax on sales made outside your state and pay them to the tax authorities. (Presumably the person billed can apply to them for a refund, or may be able to get a refund from their own state.)

Remember, the rule is the state requires you to pay the tax on all sales unless the sale is exempt. Where the sale is exempt, you are then not required to pay the tax which means you don't have to collect it. If you collect it, you are then required to pay it to the sales tax authority or refund it back to the customer.

[BABLTD]

I have the same issue, so how (as in the the first question) can I set a "site wide" tax rate regardless of the customers country in relation to my store?

Eddie

[Merlinpa1969]

Since NONE of us are Tax attorneys, best bet is to first contact your state comptrollers office and get the rules for your state from them,
( county and city too if necessary ) then before decidint to charge tax on ALL orders you may want to consult an attorney.....

Better safe than sorry, would suck to get your ######## in a jam cause you didnt ask the RIGHT people.

[BABLTD]

Thank you for all the replies.

The reason we HAVE to charge VAT is because our site is selling training courses (held in the UK) which under section 12 of the VAT regulations (as pointed out by HM Revenue & Customs) we HAVE to charge by law.

This also now applies to downloads for our audio products, but not CD's or DVD's.