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    Why Alienware charge TAXES for non FLORIDA residents?

    Discussion in 'Alienware' started by odessa, May 24, 2008.

  1. odessa

    odessa Notebook Consultant

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    Hi,

    Since I live in Europe and I have 2 friends one in TX and the other one in CA. I noticed that Alienware will charge me Taxes if I place the order from TX or CA. Why?

    I was under the impression that since AW is in Miami only the Florida residents will pay TAXES .


    BTW I contacted AW sales department and they have not answer such simple question.

    THX
     
  2. cdnalsi

    cdnalsi Food for the funky people

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    Yeah, it doesn't work that way. There's the Florida sales tax, which is 6.5% if I'm not mistaken, which everybody has to pay when they buy something. That's how the state makes money (that's how the US makes money - out of Sales, Federal, and some other taxes).

    I bought my Macbook Pro last year from Orlando, and I'm not even a US citizen, I don't live there, I just work there. Anyways, I had to pay the tax, and with a mouse and a backpack, it all went up to $2,881.

    So yeah, expect to pay the tax...
     
  3. crystak

    crystak Notebook Evangelist

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    So even if you order from Europe, you will be charged a tax (VAT) corresponding to the country. e.g. 17.5% in UK.. so 6.5% is nothing.
     
  4. cdnalsi

    cdnalsi Food for the funky people

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    I guess my advantage was that I didn't order it, I just went to the store and picked it up. Can't do that with Alienware though :(

    And when I brought it back into my home country, I didn't pay any VAT (which is 16% here in Romania). They asked but I said it's an old computer, I had this forever :D

    But yeah, 6.5% + 17.5%, that's just insane! (for a $3k-$4k computer)
     
  5. exiled

    exiled -_-

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    the tax rates are decided by the state government. each state has their own rates. the only 2 states i think that dont have sales tax is new hampshire(not sure about this one) and delaware.
     
  6. bhattsan

    bhattsan Notebook Deity

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    Since they are owned by dell, and dell has representatives/kiosks in *every* state, you have to pay the tax of the respective state, and *not* florida's rate...
     
  7. odessa

    odessa Notebook Consultant

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    So event if the head quarter is located in Florida and there is not a Alienware store in TX I have to pay TAXES? I used to live in the states and I used to buy some items from
    different states and I never payed local TAXES :confused:
     
  8. bhattsan

    bhattsan Notebook Deity

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    Not necessarily an alienware store, but since dell is located in every state, you have to pay local taxes :(
     
  9. nbaumann

    nbaumann Notebook Deity

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    I don't that's actually how it works. When you buy an Alienware, depending on which state you live it will calculate the tax accordingly.
     
  10. KShub

    KShub Notebook Consultant

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    You sir are 100% correct. When you purchase from any company online, if they have a physical presence within your state, you have to pay your state's sales tax.

    Good link here

    EXAMPLE
    Margo is passionate about rare orchids but can't find them in Indiana, so she orders her supplies online from an orchid supplier with headquarters in Vermont. The supplier has all of its facilities in Vermont and collects payment in Vermont. Margo does not have to pay Indiana sales tax (or Vermont sales tax) on her orchids.

    A few months later, the supplier opens a warehouse in Indiana to handle its online orders for the entire country. Margo continues to order her orchids from the headquarters in Vermont but she must now pay Indiana sales tax. Her ride on the tax-free train is over
     
  11. mjl2142

    mjl2142 Notebook Evangelist

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    Yes, because dell (AW's parent company) has a physical presence across the US, they are required to colllect sales tax.

    If you want to be technical, however, the IRS has now added an out-of-state purchase section to the tax returns, so you are supposed to pay.

    Whether the company is required to collect or not is not technically supposed to influence whether you pay tax.
     
  12. Stone825

    Stone825 Notebook Virtuoso

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    Lol @ "not technically" :)
     
  13. sleey0

    sleey0 R.I.P. AW Side Topics

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    Yep. AW was tax free outside of Florida, but now that they have been purchased by Dell you must pay taxes in your respective state....
     
  14. Soloman

    Soloman Notebook Consultant

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    Ah, being owned by dell has nothing to do with it. Its called an interstate sales tax. You order anything from anywhere in the US and if your state has a sales tax you are going to pay it. This allows AW, Dell and whoever to do commerce within the state you live in.

    Call it an agreement between your state tax people and the company, one that the company cannot afford to refuse.

    You paid a sales tax at point of purchase because one existed, and because you took the product with you, not that you were from Romania or not. Common practice is and was to have it shipped if you lived in a state with lower or no sales tax. But all they ship is the empty box, you keep machine with you, not to mention hardly any weight for shipping.

    If you live in a state with no sales tax, then you will not pay any sales tax. And btw the Feds do not collect sales tax, only states can.
     
  15. mjl2142

    mjl2142 Notebook Evangelist

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    You are incorrect, interstate sales tax is still on the drawing board, and has not been enacted yet.t

    The purchasing individual still owes the tax, but the company is not required to collect it unless they have a nexus (physical presence) in the buyer's state.


    This article sums it up nicely: