Taxes
The objective of the direct marketing industry is to alter the sales distribution chain, in other words the wholesaler and the retailer and go directly to the customer, reducing therefore tariffs and taxes.
In the United States, an advantage of this type of shopping is that the merchant is typically not required by law to add sales tax to the price of the goods, unless they have a physical presence in the customer's state. Instead, most states require the resident purchaser to pay applicable taxes. There has been periodic discussion about amending the law to make these sales taxable.
In the European Union, a "VAT union" is in force: the merchant selling to a buyer in a different EU member country adds the VAT of his own country to the price, and the buyer pays no additional tax. A buyer for resale may deduct that VAT, just as with purchases made within his own country. This makes the EU look more like one country than the U.S. in this respect.
Read more about this topic: Mail Order
Famous quotes containing the word taxes:
“Note, besides, that it is no more immoral to directly rob citizens than to slip indirect taxes into the price of goods that they cannot do without.”
—Albert Camus (19131960)
“The law before us, my lords, seems to be the effect of that practice of which it is intended likewise to be the cause, and to be dictated by the liquor of which it so effectually promotes the use; for surely it never before was conceived by any man entrusted with the administration of public affairs, to raise taxes by the destruction of the people.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (16941773)
“The goof man, in dealing with his people, taxes them with luxury.”
—Ralph Waldo Emerson (18031882)