Business

Online Shopping Will Be More Expensive Due To New Ruling Of SC

The shoppers looking to purchase some holiday gifts are going to be charged with some amount extra as a sales tax while shopping on different websites, which were not before because of Supreme Court. The ruling of June announced go ahead for various businesses to collect more sales tax for online purchases. Most of the companies have started taking this advantage of ruling during this busy shopping season. The shopping bill of customers will look somewhat different now, says a spokesman, Jason Brewer for Association of Retail Industry, which represents about 70 largest retailers. The charges of sales tax for customers will differ according to the location from where they are purchasing products or shopping.

Online Shopping

Before this decision of Supreme Court, the businesses were only allowed to collect tax from the state if they have their warehouses, stores or any physical presence in the same state. That means major retailers like Apple, Macy’s, Target and Best Buy will collect more sales taxes from the online customers as they have their stores present worldwide. But, now Supreme Court has ordered the sellers from other states doing good amount of online business in state to collect sales tax. That means the retailers like Overstock, Newegg and Wayfair are required to get sales tax in other states too.

Before the decision of Supreme Court, Overstock used to collect sales tax from eight states. But, now it is collecting taxes nationwide. Similarly, Wayfair collected sales tax from 25 states previously, but now it is collecting tax from 36 states. Various big states such as California, New York, Florida and Texas do not have such tax collection requirements yet in place. Due to this, online shoppers don’t have to pay sales tax on purchase of products for some time. The states have to use their power that Supreme Court offers them, especially while collecting taxes.

Deepak Kumar

After working as digital marketing consultant for 4 years Deepak decided to leave and start his own Business. To know more about Deepak, find him on Facebook, Google+, LinkedIn now.

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