Posts Tagged ‘sales tax’

Beneficial Enhancements Added to M.O.M. v8 API

Friday, February 24th, 2012

Posted By: Michael Nardini, VP of Customer Satisfactionnardini Beneficial Enhancements Added to M.O.M. v8 API

The Dydacomp Development team has added a number of new enhancements to the M.O.M. v8 API in the lastest API update to expand Multichannel Order Manager’s capabilities. The latest M.O.M. API SDK installer is now available on the support section of our website. The M.O.M. v8 API enables your business to integrate M.O.M. with your eCommerce provider of choice.

These API updates incremental feature enhancements to M.O.M’s API to expand the capacity of the API and to ensure it meets your business needs. This February 2012 release includes a number of additions to improve integration between your eCommerce platform and M.O.M to help seamless process your online orders.

The February 2012 API Update includes:

  • New Sales Tax Utility
    • Showcases important API capabilities including how the API can be used to perform updates, using XML input files, to national, state, county, and zip sales tax tables.
    • Simplify your tax management for your business.
  • M.O.M. API: Test Connection Utility
    • Used to confirm API has been installed correctly.
  • New Accounting functions
    • Allow export of M.O.M. credit card merchant account information
    • Update sales tax rates for national, state, county, and zip
    • Export sales tax rates for national, state, county, and zip
  • New Order functions
    • Allow PayPal order entry
    • Allow pre-paid credit card order entry
  • New Shipping functions
    • Allow export of M.O.M. shipping methods information
  • Bug Resolutions:
    • Issue with shipping cost override on order has been resolved.
    • Issue with line item price override on order has been resolved.

For more information, download the latest M.O.M. API User Guide on the Support site under the Misc. Utilities section.

If you haven’t upgraded to M.O.M. v8 yet and want to learn more about how M.O.M. ‘s API can help you improve your eCommerce store today, click here to register for the API webinar.

If you have any questions or trouble updating, the Dydacomp Support team is available by calling 973-237-0300. You can also contact Support via the online ticketing system by clicking here.

Please remember to backup your M.O.M. system daily. 

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Posted in Dydacomp News, Ecommerce, Multichannel Order Manager | No Comments »

Another Online Sales Tax Win!

Friday, February 11th, 2011

Posted by: Albert Realuyo, VP of Product Management at Dydacomp

The State of North Carolina has announced it will not to seek personal information related to consumers’ online purchases. Before this ruling was passed, North Carolina wanted online retailers to provide customer information concerning online sales so the revenue department could determine how much sales tax the state was owed for online purchases.

47 salestax Another Online Sales Tax Win!

This ruling was made after a court case in which Amazon.com filed a lawsuit against the North Carolina Department of Revenue claiming it was a violation of customer privacy.  The North Carolina revenue department still insists that the state had never intended to use the product information to tie customer information to products they purchased and was simply using the information to help enforce sales and use tax collection. This is a huge win for online retailers as the collection of sales tax by the state would have directly impacted online revenue and business for online retailers. However, residents are still required by law to pay taxes on items purchased online when an online retailer doesn’t charge sales tax, but few residents actually do.

This ruling comes within weeks of the DMA’s win that resulted in an injunction that now prevents the state of Colorado from acquiring customer order information from online retailers to collect sales tax. Amazon.com is currently pulling business from the state of Texas as they were unable to reach an agreement with state officials to avoid collecting sales tax on purchases made by Texas residents. It will be interesting to see how this issue plays out in Texas, especially with the two recent wins for retailers in both Colorado and North Carolina.

Here at Dydacomp, we will continue keep you updated on all important sales tax information as it happens to help keep your business running smoothly and in compliance with the various sales tax laws by state.  You can also click the links for more information on  the Texas and North Carolina rulings.

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Update: Colorado Online Sales Tax

Friday, February 4th, 2011

Posted by: Albert Realuyo, Vice President of Product Management

In July, we wrote a couple of blogs that informed you about the new online tax laws in the state of Colorado. This new law requires all online retailers outside the state of Colorado to collect sales tax information from customers and turn it over to Colorado’s Department of Revenue.  Shortly after the new law was passed, the Direct Marketing Association (DMA) filed a lawsuit in federal court against the state challenging the constitutionality of the law. They feel that the law discriminates against interstate commerce, violates the privacy of consumers and risks the disclosure of confidential consumer data.

Last Thursday, the judge in the case granted the DMA a preliminary injunction, which prevents the state from enforcing parts of the law relating to providing customer data for an indefinite period of time.  This was a win for the DMA as they were able to provide evidence that the law is not constitutional as it discriminates against out-of-state retailers.

What does this mean for online retailers? Retailers who carry out eCommerce (yet are not located in Colorado) have no obligation to provide the state with: a transaction notification at the point of sale; a notification to consumers who live in Colorado; or even a notice to Colorado Department of Revenue. This injunction will stand until the final ruling is made in the case, but there has been no specified date for this yet.

This is definitely a huge win for the DMA and retailers as more and more states continue to create new laws that concern online sales tax, but the case is not over yet.  We here at Dydacomp will continue to keep you up-to-date on any important information that can affect your business. We will also ensure that Multichannel Order Manager and SiteLINK will perform for you so you will continue to be able to adhere to the different states’ approaches to collecting sales tax.  You can also check out more information about this ruling in this article from MultichannelMerchant.com.

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New Ruling: Gift Card Taxes

Thursday, January 13th, 2011

rcoon1 New Ruling: Gift Card TaxesPosted By:  Rob Coon,  President of Dydacomp

The Internal Revenue Service announced last week that the sales of gift cards do not have to be counted as taxable income until they are redeemed even if they were sold through a subsidiary or franchise, or are issued as a refund for returned merchandise.

Previously the regulations regarding gift cards stated that income could be deferred as long  as the cards were redeemable with merchandise from the company that sold them. Problems arose because most retailers have subsidiaries that handle and sell gift cards; the IRS contended that the income is taxable upon the time the gift card was sold even if it was redeemed by another division in the company. The National Retail Federation argued that the income from gift cards still goes to the same company regardless of whether the cards are sold directly by the parent or through a subsidiary.

The deferral of taxable income on gift cards doesn’t affect retailers if the cards are redeemed in the same year they are purchase. However, the deferral can be a large factor in retailer’s tax liability when a card is sold in one year and no redeemed until the following year. This often happens during the holiday season. The IRS now says that gift card income can be deferred regardless of whether the cards are redeemed by the parent company, a subsidiary or a franchise.

Does this new ruling affect your business? How do you feel about this new ruling on when gift cards become taxable?

Check out further information on the National Retail Federation site.

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Posted in Ecommerce, Industry News | No Comments »

Dydacomp Sees a Significant Trend in Taxing Out-of-State Merchants

Thursday, August 12th, 2010

Posted by John Healy,  CEO of Dydacomp

jvh3 Dydacomp Sees a Significant Trend in Taxing Out of State MerchantsIn the last few weeks I have made several posts concerning Colorado and Oklahoma’s attempts to hold their citizens accountable for sales tax on goods purchased and shipped from out of state companies.  These states ask you to supply the information to both them and the consumer annually.   Luckily, Mail Order Manager and Dydacomp can help you with this administrative nightmare.

Unfortunately, there is one issue we cannot help you on.  According to the Direct Marketing Association, The Ohio Commercial Activity Tax (CAT) imposes an aggressive nexus standard known as a “bright line” nexus standard.  Under this standard a taxpayer is deemed to have nexus if at any time during the year it has any of the following:

  • $500,000 of taxable gross receipts
  • $50,000 worth of Ohio property
  • $50,000 of Ohio payroll or other compensation for services in the state
  • At least 25 percent of its total property, payroll, or gross receipts in Ohio or is domiciled in Ohio

This is NOT a sales tax.  This is a direct TAX on your business.

DMAlogo Dydacomp Sees a Significant Trend in Taxing Out of State Merchants

I strongly suggest that you attend a free webinar on this subject put on by the Direct Marketing Association, Wednesday August 25th, 3 – 4 PM EST.  Click on the link below or call to register in advance.

Online: Register Now

Fax: 212.302.7643

Phone: 212.790.1500

Mail: Printable Form
DMA Customer Service
1120 Avenue of the Americas
New York, NY 10036-6700

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Internet and Mail Order Sales Tax Idea Spreads to Oklahoma

Wednesday, August 4th, 2010

Posted by John Healy, CEO of Dydacomp

jvh1 Internet and Mail Order Sales Tax Idea Spreads to OklahomaIn previous posts we’ve addressed the sales tax situation in Colorado, now the sales tax reporting law has now spread to Oklahoma.  Here is an excerpt from an email that the Direct Marketing Association recently sent out on the subject:

“DMA filed comments this week on the draft rules implementing the new use tax notice law in Oklahoma.  The draft rules closely mirror the legislative language in contrast to the expansive and highly prescriptive regulations adopted in Colorado.

The draft regulations can be found here.  Please note that these are not in effect yet.  As we (DMA) understand it, there will be a hearing following the comment period before the regulations are adopted and go into effect.”

oklahoma 300x150 Internet and Mail Order Sales Tax Idea Spreads to Oklahoma

We at Dydacomp will keep you posted like we have for the Colorado law as the implementation of the regulation in Oklahoma becomes more clear.  We also suspect that this is a trend that will continue as states try to balance their budgets any way possible.  In an earlier post, we took you through an analysis that the individual states are showing about a $112 billion deficit, or roughly a 17% deficit on average.  That deficit has to be made up as most states have passed balance budget amendments so look for more activity.  The only fortunate part is that Mail Order Manager can help you with the necessary reporting to be compliant.


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A Little More Background on the Colorado Sales Tax Issue

Wednesday, July 28th, 2010

Posted by John Healy, CEO of Dydacomp

jvh2 A Little More Background on the Colorado Sales Tax IssueI thought I would share with you a very good summary of the Colorado Sales Tax reporting issue that you will unfortunately need to deal with in the very near future.  A summary of the most current thinking has been best captured by Monica Smith, CEO of Marketsmith, Inc.  Her company specializes in mail planning, database and analytical marketing services.  Take a look at her very thorough and brief take on the new law at: http://www.marketsmithinc.com/2010/07/update-on-colorado-salesuse-tax-legislation/

colorado 300x165 A Little More Background on the Colorado Sales Tax Issue

Also, read our post on how to deal with this law from a reporting standpoint using M.O.M. at http://blog.dydacomp.com/new-sales-tax-law for more details.  We’ll also do our best to keep you curent on this law as the Direct Marketing Association among other groups is challenging Colorado’s authority as a state to implement this type of tax on out-of-state companies.

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Why You Need to Watch for an Internet Sales Tax

Friday, June 11th, 2010

Posted by John Healy, Dydacomp CEO

jvh1 Why You Need to Watch for an Internet Sales TaxAs much as I like to talk to you about your business and how Dydacomp can help you be a world class multichannel merchant, there is something facing you that could negate all of the good work we are doing together.  I’d like to spend just a few minutes talking about what I am seeing as a Board Member of the Direct Marketing Association as opposed to the CEO of Dydacomp and how it will affect us all as it relates to what is going on with the current year and the mounting budget deficit.  I am no economist, just a business person like you, but I can already see what we are heading into.

A couple of data points put things into perspective for me recently on the current financial situation for the United States Government and 46 of the 50 States…. The budget deficit is HUGE!  I’ll give you the numbers in a second, but the only way out of this mess is, of course, to spend less and tax more.  Both of those efforts will have a profound effect on your business in the next two years.

So let’s start with the Federal Government.  Below is a chart that Morgan Stanley produced to show an e commerce audience (among others) that one of our biggest challenges for growth will be to stay clear of the Federal Government’s efforts to deal with the annual and accumulated budget deficit.  Take a look at what they showed us for fiscal year 2009 alone:

biggestchallenge 300x234 Why You Need to Watch for an Internet Sales Tax

Basically it shows that the US Government took in $2.105 trillion dollars in fiscal year 2009 and spent $3.518 trillion!  So to get things back in line it is apparent that the government will need to cut economic aid, for instance, to the individual states and entities like the United States Postal Service (USPS).  On the latter there is more news… the USPS has projected that if things don’t change they will lose, on average, roughly $24 billion a year for the next 10 years (Source).  On top of that  46 out of 50 states are currently showing a budget deficit that averages about 17% per state or roughly $112 billion dollars in total on their own (Source).  Here is a map showing which states have a budget deficit:

statebudgetshortfall 300x259 Why You Need to Watch for an Internet Sales Tax

So what does this mean to you?  Well, forget how much more in health insurance you will have to dole out as an employer or pay as an employee or that the USPS will file a new rate case in July where they will ask for an exception to raise prices above the cap provided by Congress just two years ago which currently is tied to the Consumer Price Index.

I think the most profound effect and risk to your business is what I am seeing as an effort that has already started by individual states to apply a sales tax when you ship into their state whether the order is taken online or over the phone.  New York and Colorado are already on this.  This will add another 5 – 10% in cost to your customer which is just enough, I believe, to put a large number of orders at risk.

My only suggestion to you is that you stay in touch with these issues and the best way to do that is probably joining the Internet Alliance which is part of the Direct Marketing Association.  They are working on this every day among other issues like privacy and data security.

As more information becomes available on this subject I will post to our blog to share with you.  We will also ensure that Mail Order Manager and SiteLINK will perform for you so you will continue to be able to adhere to the different states’ approaches to collecting sales tax as well as be compliant with non Government regulatory entities like PCI.

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New Sales Tax Law

Thursday, May 6th, 2010

Posted by Christine Amodio, Dydacomp Technical Writer

camodio New Sales Tax Law

Recently, a law was passed in Colorado that will change businesses in all locations.  Colorado is finding that residents are not reporting purchases they made where they were not charged tax.  This law will require all businesses to report the taxes collected on orders from Colorado residents. 

Your business does not need to charge taxes for customers in Colorado in order to comply with this law.  All you need to be able to do is show what taxes, if any, were collected from a Colorado buyer.  This is a law that other states might start to enforce, so it’s good to know Mail Order Manager can help. 

The best report to use to get all of the information you need to comply with this law, is the Sales Listing Report.  This report can be generated for a specific date range, and by geographic location. 

 saleslistingreport New Sales Tax Law

For the time frame and location selected, the report will output the total merchandise, taxes, and shipping fees collected. 

For more information on the law, visit page three for house bill 10-1193 here.

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