B&N quarterly results?

[jmc_bks]

B&N predicts slower sales and posts a loss.

The slower sales forecast doesn’t surprise me; more interesting was that the loss included “included a pre-tax charge of $8.3 million for the settlement of a dispute regarding the collection of taxes on sales made by its online unit.”

I want to know more about this, since I didn’t think B&N.com calculated or collected tax.

Also of interest is that B&N is still contemplating the purchase of Borders.

Comments

[riley-merrick.livejournal.com]

I think tax goes by state. Years ago, B&N.com didn't charge me tax. Now they do, b/c I live in PA. So I wonder if that period where they didn't charge me tax if I ordered online relates to the "dispute" mentioned?

[jmc-bks.livejournal.com]

I know that for catalog companies, the consideration for whether or not tax had be to charged was whether they had a substantial nexus with that state. But I thought that most companies with internet sales were disputing the need to collect sales tax, because of the huge reporting/collection issue when it comes to the number of jurisdictions they sell in.

[dogzzz2002.livejournal.com]

Wow, I never considered the tax issue. Up here you pay it, no question and if you make over a certain amount (I believe around 20 thousand) and you provide a service you also have to pay GST (I think it's either 7 or 6% now)

I could see the federal tax always having to be paid but I would think sales tax for each state would be hard to calculate and bookkeeping would be a nightmare.

Whenever I order something from the States and I don't see any tax I always assume that means there is no tax for the State it's coming from. Also, maybe because I will get taxed on it as it goes over the border the US company doesn't have the right to re-tax me - not sure how that would work.

Also, up here we can have 'pay no taxes' sales but Bob and I are cynical enough to know the taxes are already built into the price cause as they say, 'death and taxes' ;)

CindyS (working in data entry - thus a service but I'm not collecting GST from my client because I don't make enough to worry about it.)

[jmc-bks.livejournal.com]

In the US, sales tax is a state tax rather than federal. I think most states have a sales tax, but a few (Delaware, and maybe Florida?) but the percentage varies. The bookkeeping nightmare is the thing, really. Most states say that if a company has a sufficient "nexus" with it, the company should be collecting and reporting. But how can an online company do so? That's 50 tax forms to complete at the very least!