Do websites pay taxes?
Asked by
robdamel (
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)
March 28th, 2011
I tried googling, and couldn`t find anything.
If the answer is yes, is it possible that offshore websites avoid taxes (I know this is the concept for online gambling at least)? For example, what if a website was opened in the USA that only sold items for customers in England?
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2 Answers
Websites do not have to pay taxes. I could host a website using my computer and not have to pay taxes on it. The person or company that owns the site would have to pay taxes only if they are running a for-profit website, and they would have taxes on the income. In your example, if a business in the US sold only to UK customer, it would have to pay income tax to the US government, along with the cost of exporting from the US and importing to the UK, including any tariffs that may exist.
@PhiNotPi hmm, cool, thanks. I did some googling on other stuff, and apparently, depending on the country, you must pay taxes if you have a foreign income. (In this case, if I was living in England, selling items to English people through an American website, I`d have to pay taxes on this foreign income)
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