What is your question? Please type in your question below and click search.
Why do you collect taxes even though your company is not in my state? I thought internet sales were free of local taxes?
Posted by on 10 April 2012 10:57 AM
We appreciate your concern on the collection of taxes in your state, and by extension, others. Allow us to explain why we collect taxes.
The existence of an Independent Distributor in a state creates nexus, which ties Evolv to that state. The Independent Distributor is our presence in the state in question, and this requires us, in the eyes of the state, to collect and pay sales tax.
In order to smooth business operations and not require each distributor to collect taxes on sales and have to set up a business entity to collect said taxes, we provide this service. But regardless of whether we collect and pay the tax on the sale or the distributor does, these sales must be taxed.
We hope this explanation assuages your concern with our legally necessary collection and payment of sales tax in your state. Our legal team is very confident that we need to collect these taxes to be in compliance with the tax laws of the states in which we have the presence of independent distributors.