Quote:
Originally Posted by gmw
I got something similar from BookBaby when I was dealing with them, but what that doesn't explain is why Amazon and Smashwords see it differently. Aren't they, too, just selling the book on consignment? My interactions with all of them are effectively identical, so why isn't the tax aspect identical? That's what always puzzled me.
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I've been thinking, and this just occurred to me:
In the US, payments from product consignments don't require 1099s (reported payments), but that refers to
merchandise, NOT services.
Digital goods sales usually are handled as a service rather than a product.