Quote:
Originally Posted by jalandar
It would be akin to a Russian court telling me I have to collect Russian imposed use taxes from Russians who buy one of my products online. They have no jurisdiction over me, and no right to make that demand.
|
I don't know about Russia but Amazon US already collects import tax and Latvian VAT on shipments to Latvia on behalf of Latvian government. Previously Latvian shoppers had to go deal with customs directly and pay the tax themselves and it was a big inconvenience. Now Amazon apparently has made a deal with the Latvian authorities that they can collect import taxes in advance at the time of purchase and all imported items from Amazon will be cleared automatically by the customs agents. I don't know exactly what goes behind the scenes but I only know that it is a big relief to shoppers.
Amazon UK also is obliged by law to collect Latvian VAT for shipments to Latvia. In this case it is due to certain EU VAT rules which apply to big companies that exceed certain limits of commerce.
The analogy is not perfect because California is not another country. Still, it sounds reasonable that Amazon would be asked to collect taxes on behalf of the state authorities.