One of the most compelling tax breaks is coming to an end in the near future. Internet sales are booming and the incredible tax savings that comes from buying supplies or equipment off the internet might soon be over.
Before legislation speeds up this process, it is important to take advantage of this huge loophole and the overall savings that can be realized.
Products purchased from the Internet often cost less.
Buying just about anything from the Internet offers not only a break in paying sales tax, but often a cost savings over local retailers with hefty leases and greater operating costs. So it’s often a double savings from buying local.
Think about purchasing higher quantities to take advantage of large volume discounts and be prepared to be surprised at the savings.
Internet shopping often saves on shipping.
Many Internet retailers can even offer free shipping, while simply absorbing the cost and still bring in a higher profit margin than a retailer that runs out of a brick-and-mortar storefront establishment.
Shipping has also come a long way. Products arrive unscathed right to the door with the same guarantees, even saving a bad back or the headache of getting it from one location to another. Competition in shipping has also lowered the cost and expedited shipping is readily available.
Time saved by comparative Internet shopping saves too.
When business owners or employees are sent out to purchase products, the money spent doing so is often overlooked. Ordering products from the Internet can be accomplished from the office with a few simple strokes of the keyboard and click of a mouse. Most websites take less time to complete a sale than the time that can be spent waiting in a checkout line. Repeat orders take even half the time.
Your savings on sales tax and Internet shopping can quickly add up.
If a business needs a couple of new computers, new software, office furniture or even ink for the printers, the savings on sales tax can easily add up. Some states without sales tax often experience extra sales in cities that border states with high sales tax and the internet has been no different. Internet commerce has been booming as individuals and businesses alike have taken advantage of this massive loophole.
To remain competitive, all small businesses have to take advantage of these immense savings before they are a thing of the past. Add the other reasons to shop online and now is the time to capitalize on a good thing.
Internet sales tax legislation is expected to be demanded and in effect by 2016 at the latest. This will level the playing field, however, the competitive edge that these businesses have will remain in effect. As smaller businesses struggle to cut costs, purchasing from the internet today will set up more savings in the future. Much like “free shipping”, we might even see these same retailers absorbing sales tax in the same manner.