Retail revenue tax that is declared on the SRI deduction (line code 95) Uniform Purchasing Rules For state sales, the seller would be expected to record the tax rate for the lender`s location. This is an “original sourcing.” For sales in a remote seller`s state, the seller would register the applicable national rate for the destination state. This is defined as “target” sourcing. States may not have appreciated the judgments of Bellas Hess and Quill, but most of them could not say that their VAT laws were not “a virtual world of complicated obligations.” VAT laws are notoriously complex: rules on the taxation of products vary from state to state; VAT rates, rules and rules may change; and there are currently more than 12,000 tax jurisdictions in the United States. When Quill was decided, little effort was made to tame this complexity and companies had to manage VAT manually. SSUTA strives to simplify sales and tax administration for all sellers: in an editorial published on March 7, 2011, Hutchinson News of Kansas wrote: “Kansas was smart to be among the 24 states that are part of the Streamlined Sales and Use Tax Agreement. These countries have made their VAT rules and definitions homogeneous and have created an environment in which retailers can collect taxes on remote sales in those countries. Computer software easily calculates VAT on sites in these countries. The question of the current tax impact of online sales on traditional retailers, writes Hutchison News, continues Hutchison News: “In addition to the loss of tax revenue — at a time when the government can least afford a tax leak — the lack of VAT tax on online purchases remains a significant disadvantage for traditional stationary businesses on our main streets. And it also makes a tax even more regressive, because only those with credit cards and Internet access can do business online. [5] In National Bellas Hess, the court held that a mail-order seller could not be compelled to collect and transfer VAT to a state where he had no physical presence.

If states were allowed to tax remote sales, she said, “The many differences in tax rates, authorized exemptions, and administrative requirements and registrations could lead to National`s intergovernmental activities in a virtual world of complex obligations.” Quill confirmed this decision and considered Bellas Hess` physical presence test to be a “right”. Businesses can register to collect and transfer VAT in all Member States using the Optimised VAT Registration System (SSTRS), which can significantly reduce work and hours spent. The law allows some companies using the Automated Certification System (CAS) to obtain a credit for the revenue/use tax they collect and report through their excise return. See WAC 458-20-27701.