Has anyone noticed that Clickbank is now charging 8% tax on customers who live in New York state?? They've always charged VAT for out-of-country sales.... but before June 1st, they've never charged a tax on US sales. Also, I'm not sure why, but in addition to charging the CUSTOMERS tax, I'm also getting a few cents less per sale. Not sure why that is. Anyone have any info on this? I hope this isn't the start of a trend for online marketing to come. Thanks. - FB P.S. New York (my home state) is full of polititians who are blood-sucking leeches. We're one of the highest taxed states in the nation and they'll nickel and dime every resident until we have no money left. <-- Sorry. I needed to get that out of my system. No I'm going to stop venting and go to the store so I can pay 9% sales tax on everything I buy. P.P.S. Or are they just charging MY customers tax b/c I'm doing business in NY?
"In the future they’ll be taxing you by the atom." - Anonymous That's what politicians do, they tax anything they can get their hands on, so the hard work of other people goes to fund their stupid pet projects.
There is a law suit going on between Amazon and the state of New York. New York changed the definition of nexus and now treats all affiliates living in New York as if they are Amazon employees, which creates a nexus, which makes all sales thorough affiliates living in New York subject to sales tax. As a result, several online merchants have canceled their agreements with affiliates living in New York. Others merchants have started to charge sales taxes to cover their asses, just in case Amazon loses their law suit. http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080505/REG/325804246 Go ahead, keep electing these guys. You have not seen anything yet. Wait until you see the new energy bill that the Senate is pushing through.
Crazy stuff. I wish politicians didn't view making money as a sin lol. I like money, I don't want to give it to them, so they can pay over paid lazy union bureaucrats.
Interesting article TechEvangelist. After reading the article you posted, I googled it to find out more. It seems all NY affiliates of Overstock have been cut off because of the tax/lawsuit issue. Well, I guess I'm at least glad Clickbank isn't cutting off the accounts of NY publishers and affiliates. So, am I to presume that if Amazon wins the lawsuit, Clickbank might stop charging my NY customers tax? I hate to see my customers' hard-earn money to go this money-hungry state government. Also-- Is everyone's New York customers being charged tax... or only my New York customers? Since I am doing business in New York, perhaps they are only charging people/publishers/affiliates who are doing business here. - fb
Fireboat, judging by what tech said, it sounds like they're viewing you, "the affiliate" as the one that needs to pay the tax on all those sales. Doesn't make sense, but nothing the government does makes sense. Edit: Also Amazon should win this in court, unless the court system is retarded. You can't charge sales tax on people that don't live in new york, or do any business taht has anything to do with new york.
But they're not charging ME sales tax. I pay ordinary income tax and lots of it. Sales tax is paid for by the customer. And my New York customers are paying the tax. That's what's bugging me. My product sells for 19.95. After Clickbank fees, I make 17.45 per sale. Even when NY customers pay the tax, I'm still making $17.33. The customer is paying $1.67 per sale.
I believe they're making amazon collect the sales tax on your behalf. It's a stupid law which should be overturned unless the court system is just as corrupt as the politicians in New York.