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03FLHT2
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Re: Where is B&N Management??

no if B&N has a store in your state you will have to pay all taxes as at the store itself

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LarryOnLI
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Re: Where is B&N Management??

 

03FLHT2 wrote:

no if B&N has a store in your state you will have to pay all taxes as at the store itself

 

 

Actually it is not going to be that simple.

 

B&N will no longer be the seller of the book, just an agent.

 

It's the publisher of the book that is the seller.

 

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QuiteTheCharacter
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Re: Where is B&N Management??

I'm not an expert here, but I think the standard law about sales tax is goes something like this.. If you buy something online, and if the place that you purchased it from has a physical presence in your state, then you have to pay sales tax on it..

 

I think the caveat so far with BN is that "bn.com" is I believe a separate company from the bricks and mortar BN stores.. So technically, when you buy from "bn.com" you don't have to pay sales tax, even if there's a BN bricks-and-mortar down the road..

 

So in the Agency model, the actual merchant is apparently no longer "bn.com" but the publisher themselves (with "bn.com" as the agent).. So I think the same rules would apply.. You pay tax if the publisher has a physical presence in your state.

 

Again, I could be off here, but I think that's the way it works.

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Alley415
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Re: Where is B&N Management??

 

 

 

LarryOnLI wrote:

 

Actually it is not going to be that simple.

 

B&N will no longer be the seller of the book, just an agent.

 

It's the publisher of the book that is the seller.

 

 

This is true in some regards but won't affect the collection of sales tax.  The burden of assessing and collecting tax is on the end seller which will be B&N.  As long as the product is sold through it's store and it has the legal requirement to collect sales tax for that state, it will be charged.

 

Doug_Pardee
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Re: Where is B&N Management??

Alley415 wrote:

 The burden of assessing and collecting tax is on the end seller which will be B&N.  As long as the product is sold through it's store and it has the legal requirement to collect sales tax for that state, it will be charged.

 

This is true; it's still B&N's problem to collect and disburse the sales tax for e-books they sell.

 

What's changing is which states B&N must collect sales tax for. In many states, sales tax must be collected if the seller has a 'presence' (or some such term) in the state. Now it's a different seller. Furthermore, different books will be taxable in different states depending on which publisher they come from.

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Alley415
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Re: Where is B&N Management??

 

 

 

Doug_Pardee wrote:


This is true; it's still B&N's problem to collect and disburse the sales tax for e-books they sell.

 

What's changing is which states B&N must collect sales tax for. In many states, sales tax must be collected if the seller has a 'presence' (or some such term) in the state. Now it's a different seller. Furthermore, different books will be taxable in different states depending on which publisher they come from.

 

No, you are missing the point...B&N is the seller for all sales tax related activity.  The state DOR could care less who "made" the product and was the initial seller.  All they care about is who were the end parties of the sale.  That would be the customer at their address of record (on B&N) and B&N.  The state DOR do not track the "middle men" so to say.  As such, nothing will  change as to how the sales tax is being assessed.

 

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FrogAlum
Posts: 3,425
Registered: ‎12-25-2009

Re: Where is B&N Management??

Here you are kiddos:

 

"Among the many significant complexities both publishers and retailers are dealing with are the sales tax compliance responsibilities, which we're told shift to the publisher under the agency construct."

 

 

Date for change to ebooks agency model looms

 

This would be due to the fact the publishers have become the retailers.  This is going to be by far the most miserable part of the change for the IT staff....

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keriflur
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Re: Where is B&N Management??

 

QuiteTheCharacter wrote:

I'm not an expert here, but I think the standard law about sales tax is goes something like this.. If you buy something online, and if the place that you purchased it from has a physical presence in your state, then you have to pay sales tax on it..

 

I think the caveat so far with BN is that "bn.com" is I believe a separate company from the bricks and mortar BN stores.. So technically, when you buy from "bn.com" you don't have to pay sales tax, even if there's a BN bricks-and-mortar down the road..

 

So in the Agency model, the actual merchant is apparently no longer "bn.com" but the publisher themselves (with "bn.com" as the agent).. So I think the same rules would apply.. You pay tax if the publisher has a physical presence in your state.

 

Again, I could be off here, but I think that's the way it works.

 

 

Where do you live that you don't pay tax at B&N.com?  Last I checked, anyone with a store in their state had to pay sales tax from B&N online orders...

 

RE: The post above this one:

I'm glad to hear that I might not have to pay sales tax on these agency titles.  Granted, I'm in for the boycott (After tonight I've got close to 50 books in my stash, so I won't be buying from the Agency 5 anytime soon), but if the darn thing persists until 2011, at least I won't have to pay tax.

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FrogAlum
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LarryOnLI
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Re: Where is B&N Management??

Unfortunately for the purpose of sales tax, I live in NY.

 

I think all the publishers have offices here, as well as B&N headquarters. I hope that doesn't mean I get taxed twice :smileymad:

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keriflur
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Re: Where is B&N Management??

Wow.  I've had to pay taxes on all my ebook purchases.  I live in WA, and there are no B&N offices or distribution centers here.  I thought everyone did.  I guess it's the WA "destination sales tax" which means I'll still have to pay tax even if the publisher is HQ'd elsewhere.  Oh well, it's a small price to pay (no pun intended) for not having to pay state income tax.

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QuiteTheCharacter
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Re: Where is B&N Management??

 

keriflur wrote:

 

 

Where do you live that you don't pay tax at B&N.com?  Last I checked, anyone with a store in their state had to pay sales tax from B&N online orders...

 

 

As Frog stated, I haven't paid tax on any ebook purchases so far (I live in FL and my sales tax rate is 6%). There's also a bricks-and-mortar store less than 10 miles from my house.

 

Perhaps that will change with the agency model, I'm not sure.

 

Doug_Pardee
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Re: Where is B&N Management??

Sales tax laws vary from state to state.

 

Some states don't tax intangibles like e-books. Some do.

 

Various states have various definitions of how a 'seller' is defined and how a 'presence in the state' (or whatever terms they use) are defined.

 

These variables are part of what makes internet sales messy. But in the past, once a bookseller determined what the sales tax rules were for e-books in each of the states, they just had to implement that. But now the rules will vary from publisher to publisher in some states. What fun!

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Michael-V
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Re: Where is B&N Management??

Applicable sales tax is charged for electronically delivered products where required by local law. These items are considered to be "shipped" to the address that your order was billed to. Tax credits can only be applied after the order has already been billed. Customers must email their request for credit to taxes@book.com.

 

eBooks follow the normal tax rules of all downloadable products. Click here for details.

 

Your Admin.,

Michael-V