Internet Sales Tax Solution Proposed | AccountingWEB

Internet Sales Tax Solution Proposed

TAXWARE International, Inc., the leading developer of transaction based, worldwide commercial tax software, is currently developing software for service providers that will enable taxes to be tabulated for anyone in the United States. The new software will even automatically report those taxes to the proper authority.

Although the feds have halted government bodies from taxing online sales until 2001, that doesn’t prevent some states from imposing a usage tax. These states require residents to report out-of-state purchases. While the law has rarely been enforced, some states plan to include questions about out-of-state purchases on this year’s state tax returns.

The logistics of ensuring the tax rates are correct for every state and every county are complex. For example, in Massachusetts, clothing isn’t taxed unless it costs more than $175 and in Texas, each county could have a different local tax rate. Taxware’s software promises to keep sales taxes straight while keeping all transaction in “real time.”

The software, Taxware’s Transaction Tax Server, begins beta testing this month and should be available by the end of the first quarter.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.