From what I understand (after the requests for customer lists from State governments), in actuality, you *should* be paying sales tax - just on your returns, not via Newegg.
Now, most states (at least until recently) haven't really pushed for this ..... but the "not paying tax" argument isn't strictly correct. Technically, it's tax evasion.
From what I understand (after the requests for customer lists from State governments), in actuality, you *should* be paying sales tax - just on your returns, not via Newegg.
Now, most states (at least until recently) haven't really pushed for this ..... but the "not paying tax" argument isn't strictly correct. Technically, it's tax evasion.
The Customer’s Responsibility
In cases where the online retailer does not have to collect sales tax, it is the customer’s responsibility to pay the tax—in which case it is known not as a sales tax but, rather, a use tax. The TCPA states on its use tax FAQ page that one of the most common reasons for a purchaser being subject to use tax is purchasing a taxable item from an out-of-state retailer without paying Texas tax and using the property in Texas. The FAQ page goes on to state that if a purchaser purchases merchandise "through a catalog or the Internet from a seller located outside of Texas and uses the taxable item in Texas," then the purchaser owes use tax on the purchase. You can find more formal guidance about the use tax in Rule 3.346 if the Texas Administrative Code.
When an out-of-state retailer doesn't add Texas sales and use taxes to your bill, it's not because no taxes are owed — and it's not because the retailer is doing something illegal. Texas consumers fail to pay almost $1.8 billion annually.
And yet, the onus is actually still on you to report it