Big News: FounderDating is joining OneVest to build the largest community for entrepreneurs. Details here
Latest Notifications
You have no recent recommendations.
Name
Title
 
MiniBio
FOLLOW
Title
 Followers
FOLLOW TOPIC

Question goes here

1,300 Followers

  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur

Internet Sales Tax for Online Advertising Services

What is the situation in regard to internet sales tax for companies providing a platform on which users can advertise?

I have a U.K. startup but it is being marketed solely in the U.S. As a result i'm not sure if my company has to pay internet sales tax when advertisers conduct campaigns. What is the standard practice on this? Does it even apply to advertising services?

Really appreciate the help everyone.

1 Reply

David Richardson
1
0
David Richardson Entrepreneur
Owner "I Do Small Jobs" and more
Different states have different rules in the US. The situation is very fluid and will undoubtedly continue to change.

This issue for states is that tax revenue for state services is shrinking as more and more business is conducted over the Internet and not through brick and mortar stores. Many (most?) states have rules saying that IF a business has a physical presence in a state where they sell a product, they are required to collect and pay taxes on the sale.

For Amazon.com they have distribution centers in a greater number of states and are starting to cooperate with states collecting and paying the tax. If people shop across state lines, (interstate commerce) the retailers typically don't pay sales tax. For online advertising in Texas, if the annual sale amount is below $25 then no tax payment is required. But that is ONLY FOR BUSINESSES within Texas SELLING TO OTHER BUSINESSES within Texas.

Complicated huh? I don't think there is one answer for you, no silver bullet. But since you are in the UK I wouldn't worry about it. Focus on your service and increasing sales. If you start making enough revenue you attract tax collectors interest, that is a problem you'd "like" to have..
Join FounderDating to participate in the discussion
Nothing gets posted to LinkedIn and your information will not be shared.

Just a few more details please.

DO: Start a discussion, share a resource, or ask a question related to entrepreneurship.
DON'T: Post about prohibited topics such as recruiting, cofounder wanted, check out my product
or feedback on the FD site (you can send this to us directly info@founderdating.com).
See the Community Code of Conduct for more details.

Title

Give your question or discussion topic a great title, make it catchy and succinct.

Details

Make sure what you're about to say is specific and relevant - you'll get better responses.

Topics

Tag your discussion so you get more relevant responses.

Question goes here

1,300 Followers

  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
Know someone who should answer this question? Enter their email below
Stay current and follow these discussion topics?