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⍰ ASK How does the USA handle the taxation of online businesses and e-commerce transactions?

At the federal level, online businesses follow the same income tax rules as traditional ones. The IRS mandates ecommerce enterprises to report income and pay federal taxes.

State laws also affect ecommerce taxation, with the 2018 Supreme Court decision allowing states to tax online sales, even without physical presence. This led to economic nexus laws, making businesses with certain activity levels collect and remit sales tax.

Online businesses navigate a complex landscape with varying state tax regulations, including sales tax rates. Many states require businesses to registercollect sales taxess, and remit them to the state revenue department.
 

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