The Remote Transaction Parity Act Won’t Touch These Foreign Sellers – Part 2

Shortly after I wrote The Remote Transaction Parity Act Won’t Touch These Foreign Sellersthere was an article in the Wall Street Journal entitled “Borders Matter Less and Less in E-Commerce” which is an excellent example of the very problem MFA and RTPA won’t address, while hammering U.S. small businesses with compliance costs and audit risks.

“E-commerce made it a breeze for a shopper to buy something from the other side of the country. Now, retailers and delivery companies are making it just as easy for shoppers to buy something on the other side of the world.

Blogger Shannyn Allan recently saw a $70-plus faux stone necklace in a boutique near her home in Chicago. She snapped a photo, ran it through Google Image and found a website where she could get the same one for $16 with approximately $7 added for shipping. It arrived on her doorstep about three weeks later—three weeks, because it was coming from China.”

Guess which product and retailer won’t be collecting tax – The Chinese seller.  

What sales tax scheme actually would enforce the tax?  States enforcing their already existing use tax laws on the books.  Spend some money that would be paying the CSPs and educate your own state residents, audit and enforce existing laws.

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