How does your state handle sales tax?

[Adrian Lopez]

It looks like we'll be getting a sales tax here in Puerto Rico so I'd like to learn more about typical mechanisms for collecting and remitting taxes. With regard to Puerto Rico, I've heard rumors of an automated system whereby money would be instantly and electonically transfered to the state, presumably because allowing companies to handle the taxes themselves would be both a burden and "irresponsible". I find that very worrisome because it means I would have to find a payment processor capable of collecting and remitting taxes in such a manner.

Isn't it standard practice for retailers to collect, account for and remit taxes through non-automatic channels?

[Adrian Lopez]

Does the lack of replies mean that none of you have ever handled taxes directly?

[mahlzeit]

If you use a payment processor, then *they* handle sales tax for you. All you have to worry about is income tax on the money the payment processor (which is really a reseller for your goods) sends you.

[kevryan]

In California you apply for a resale permit from the Franchise Tax Board. They send you a stack of paperwork explaining everything. In California the amount of sales tax you collect varies depending upon what county/city your company is in. There is a list of counties/cities listing out the percentage amount to collect.

Depending upon your in-state revenues you have send in a check quarterly or annually along with a short tax form listing out totals for revenues.

[mahlzeit]

Isn't it standard practice for retailers to collect, account for and remit taxes through non-automatic channels?
Also, this may vary where you're living, but if you're selling your own games from your own website (or let other people/companies sell your games from their sites), you are not a retailer. A retailer is someone who sells other people's products with markup. (Selling affiliate games shouldn't make a difference, because it's not you who performs the final transaction: you just get paid for referrering a customer to someone else's shop.)