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Originally Posted by HansTWN
Cheaper prices on pbooks are not really a concern for the two parties mentioned.
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Right, which is why they never made a fuss about it when the legal point of sale was generally accepted to be the location of the seller - the volume of sales just wasn't large enough to worry about.
In some places there is actually legislation that defines the point of sale as the seller's location - Amazon US doesn't locate warehouses in certain US states because if they did, any items shipped from that warehouse would, by law, be subject to that state's sales tax, regardless of where they were shipped to.
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It is easy to trivialize the tax issue.
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I'm not trying to - to the best of my (very limited) knowledge, if tax is due and wasn't withheld by the seller, it's the buyer's legal responsibility to declare the purchase and pay the relevant tax. Your tax code may vary.
And yes, digital distribution of products (and services) is going to be an enormous minefield for tax law in the coming years - a colleague of mine in Poland delivers lectures on-line via videoconferencing to students in China who reimburse him via Paypal, which is linked to his UK bank account. He dodges the question of which of those three countries income tax is due in by not declaring the income...