eCommerce tax opposition starting to turn

Recently, this blog examined the bill designed to add sales tax to online shopping in applicable states across the country. Now, despite initial opposition, many organizations are starting to come around to the idea.

The tech industry had originally not been in favor of the concept of taxing eCommerce sales, but that is starting to change. At first, the situation was described as the young professionals in the eCommerce sector versus the old executives of the brick-and-mortar retail sector, but according to an article in Politico, the younger crowd is beginning to "grow up."

David French, the National Retail Federation's senior vice president for government relations, said in the piece that much of this shift in sentiment is due to major changes in the mindset as to where the Internet resides.

"Real innovation is moving to many channels and meeting customers where they are," French said. "The emotional argument of the tech industry is 15 years old and relies on a stale perception of where the Internet is compared to the reality today of many forms of commerce."

This shows that technological changes are constantly happening in the industry. Regulations such as tax laws are adjusting to accommodate new payment methods such as eCommerce. Vendors must also work to keep up with changing laws. 

Of course, there may be some who are still opposed to tax regulations on online shopping, and vendors have to be cognizant of that fact. If vendors accepting B2G and B2B payments do not process tax information, they should be processing level 3 data with line item detail to ensure they are paying the lowest possible interchange rate. Working with a payment solutions provider can help obtain the tools needed to do this. 

by Ty Hardison

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