Why Does QVC charge sales tax?

Why Does QVC charge sales tax?

The online shopping mega store, QVC, is probably the most popular option out there for people to feed their online shopping addiction and pick up some of the highest quality products that are available in today’s market. There are millions and millions of people who use the site every single day, but that number might be starting to shrink because of a recent change that the company made regarding their sales tax policy.

A lot of people are starting to complain about the fact that QVC, unlike many of the other online shopping companies, charges a sales tax on each and every item purchased online. The sales tax varies depending on the state in which the order is made from, so it is pretty much like ordering something at your local electronics or clothing store. One of the main reasons why people tend to choose online shopping over actually in person shopping is the fact that normally there is no extra tax put on the items that you buy.

Unfortunately, at least for now, the amount of users on the QVC website is starting to decline and probably will continue to go in that direction until something is done about the sales tax. I have never actually used the site, but now that I know about this sales tax issue, I really do not see the point in going in that direction at all.

Eventually, I believe that QVC will do the right thing and change its policy back to the way that it was before initializing the new sales tax policy. I think it would be a more profitable decision to make for everyone and one that would make the most sense in business and moral terms. There is really no need to try to squeeze an extra few dollars out of a loyal customer while running the risk of losing them for good.

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4 Responses to "Why Does QVC charge sales tax?"

  1. I would like to thank QVC for making my shopping experience superior to eBay and the other online retailers. ICSC reveals that an average of 90% of consumers prefer sales tax collected at points of purchase versus having to track and remit use tax on their individual returns. Many online consumers are unaware of their legal obligations requiring them the self remit use tax on out of state purchases made via the Internet. For over fifty years states require residents to self remit use tax on all out of state purchases. However, many residents both knowingly and unknowingly choose to evade their honorable use tax obligations leaving states struggling to fund services supported through ballot initiatives they support.

    Why should I as a consumer pay more for every item purchased on the Internet? When merchants fails to collect the sales/use tax due at point of purchase I have to spend additional time and money tracking and remitting the sales/use tax legally due. Internet sales are not tax free nor have they ever been.

    I applaud QVC’s integrity making sure sales tax already due is collected and remitted. As a consumer I am grateful knowing the burden of sales tax collection and remittance is removed from my shoulders. Furthermore, knowing the schools, emergency services and many other services in my community are funded by my sales tax remitted by QVC ensures the tax man won’t come knocking at my door. Tax evasion is illegal.

    Reply
    1. Sales taxes, including those imposed by local governments, are generally administered at the state level. States imposing sales tax require retail sellers to collect tax from customers, file returns, and remit the tax to the state. Procedural rules vary widely. Sellers generally must collect tax from in-state purchasers unless the purchaser provides an exemption certificate. Most states allow or require electronic remittance. States are prohibited from requiring out of state sellers to collect tax unless the seller has established a physical presence in the state sufficient to establish a connection or group. This out of state taxation by QVC smells of double dipping unconstitutional Obamacrats. My one purchase from QVC with this unauthorised out of state taxation will keep my purchases at a minimum. If I ever accept this out of state taxation will mean that I have been dumed down enough by drinking a whole lot of Fluoridated Water!

      Reply
      1. As a sales tax professional, I assure you, Mike, there is no “double dipping” here. When QVC collects a sales tax related to a specific jurisdiction, it has decided that whatever presence it has in that jurisdiction has met the legal burden to constitute “substantial presence” and trigger legal nexus – thus the requirement to collect AND REMIT sales tax on its transactions. Any amount collected by QVC is a result of having registered with that jurisdiction to do so, and therefore, the jurisdiction DOES have the right to require remittance of any sales tax amount collected. QVC is acting in a proper way here, and it doesn’t take flouridated water to make that determination. Your “out of state taxation” is — in fact, and in practice — actually IN STATE taxation, and is no different than taxes collected by a business down your street. That is because having registered in your jurisdiction makes QVC a local business.

        Reply
  2. The United States Supreme Court decision in the case of Quill Pen versus North Dakota, of 1992, has not been repealed. Despite this, state tax departments are telling QVC to collect their sales tax, under the threat of QVC may become liable to pay all sales tax, not collected, at some future date. This is what the bureaucrats in state governments think about a U.S. Supreme Court decision that they don’t agree with. If QVC has no nexus, it has no business collecting sales tax. In most states, their tax systems are regressive, with the sales, other consumer and property taxes being the most regressive of all.

    Reply

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