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For as long as they still have customers I guess.

Way to go Texas, the rest of the US and Europe thank you.

Sales tax levies on server location, you have to give them points for creativity though.

What if I have multiple servers in multiple servers in different states or even countries?

How about I just pay sales tax on where my company is located and we'll call it a day?

The EU is getting more and more greedy too by the way, it used to be that you were VAT exempt for international sales but suddenly all sales to consumers within the EU are VAT liable.

But at least they go by corporate presence, not by where you've parked your servers this week.



If you have multiple servers in multiple states, you charge sales tax to customers in all of them (such as are relevant). Just as you would if you had brick and mortar stores in multiple states.


If my webhosting is in Tel Aviv, but my business and warehouses are in the USA, does this mean that all USA customers have to pay import duties to the US government because 'the sale happened in Israel?'


Sure, my office and showrooms are in New York, my factory is in Texas but my company is a brass plaque in Grand Cayman - so I'm not paying any taxes!


For a while Citibank used to have a dodge where they'd try to get a desk in a NY skyscraper to be declared as part of the Cayman Islands embassy, and therefore Cayman Islands territory, so that the person working from there could more easily run their shell companies without being subject to NY law.

My understanding is that this was stopped a number of years ago.


It's quite common for the trades to take place in an off-shore location.

The dealers in NY aren't actually buying or selling shares - they are only making recommendations to brokers in an offshore office.

The fact that those recommendations are all automatically acted on in milliseconds by the offshore office just demonstrates how good the advice was!


Yes, that was their workaround when the IRS disagreed with them on the legality of the previous dodge.


I'll bet you don't have showrooms, a factory or a brass plaque, not even in Grand Cayman :)




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