Online retailers could soon have to pay sales duties in the United States after the Senate passed a bill to impose the tax.
The Senate passed the bill following protests of a level playing field from bricks–and–mortar shops.
David French, spokesman for the National Retail Federation, said that as internet sales have grown “it’s putting pressure on the brick-and-mortar competitors and it’s putting pressure on state and local sales tax revenues,” reported the BBC.
He added: “It’s time for Congress to create a level playing field so that all retailers are treated fairly.”
The 69-27 vote will allow states collect the taxes will now send the bill to the House of Representatives where it is currently being opposed by some Republicans.
Currently, only firms with a physical presence in a state must charge online sales taxes and it is a coalition of brick-and-mortar retailers as well as industry groups that have thrown their weight behind the bill.
Online retailers such as eBay and Amazon are however exempt except in states where they have distribution centers or offices.
Under the proposed legislation sales taxes, which are known to differ from one state to another, would be sent to the state of the purchaser.
States will also have to provide free computer software to help online firms calculate sales taxes.
Many online retailers have been left upset by the bill.
Brian Bieron, eBay’s senior director of global public policy, said: “Complying and living under the tax laws of 50 states is a major undertaking because the process of complying with tax law goes far beyond just filling out the right forms.”
“You have to deal with the fact that all of these government agencies can audit you and can question you and can actually take you into court and sue you if they think you are doing something wrong.”
