Re: [NTLK] No VAT on international sales (was PowerTrans)

From: Mark Ross (markr13_at_comcast.net)
Date: Mon Mar 15 2004 - 18:15:35 PST


NuShield sells hard products internationally. We do not collect any
taxes (not even for those orders out of our home state) and any taxes
that are necessary are the responsibility of the buyer. We ship small
orders in standard envelopes and do not even put customs forms on
these. Larger packages will require it. So, if you ship software in a 6
X 9" catalog envelope that weighs about one ounce, you don't collect
nor will your customers be required to pay duties as this looks like a
letter or catalog. The best way, of course, is to use a downloadable
file that skirts this issue entirely.
On Mar 15, 2004, at 2:02 PM, Marcus Andree S. Magalhaes wrote:

>
> Well, If you're going to sell software online, it shouldn't apply any
> taxes. Legally, Internet is all about "data transfers" and, as such,
> it is not taxed in most (or even all) countries.
>
> If you're going to sell a physical media and deliver it to your
> customer
> address, it may be taxed. Legally, AFAIK, most of the price for a
> software
> package should reside in the "intellectual property" portion of it. The
> only taxable item would be the "media" (and this sould cost about $1
> or less). That's what happens to books: when you buy a book, the vast
> majority of the money you pay for it goes to I.P., so it isn't taxed on
> arrival.

-- 
Mark Ross
markr13_at_comcast.net
------------------------------
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