Intuit GoPayment automatically tallies state sales tax

Intuit GoPayment automatically tallies state sales tax

Summary: The mobile credit card reader taps into geolocation features on your mobile device to calculate city, state and municipal taxes for a given transaction.

TOPICS: Mobility

Intuit has updated its GoPayment mobile credit card payment technology with a feature that uses your mobile device's geolocation capability to automatically figure out state sales tax.

The technology is based on Avalara AvaTax, which uses city, state and municipal tax codes to compute the sales tax necessary for a given mobile transaction. So it helps ensure that a small business that maybe moves around from place to place across a region can ensure that it is collecting the right taxes -- without having to be an expert in local tax code.

AvaTax is different from other sales computation tools in that it uses latitude and longitude coordinates, rather than a manually entered zip code, to figure out the taxes.

The new feature works with GoPayment for iPhone, iPad, iPod Touch, and Android devices, according to Intuit.

Topic: Mobility

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  • Not for me, thanks!

    Intuit (and, in fact, Avalara also) seems to have overlooked the fact that one of the major attractions of online purchases, whether from home or mobile, is the avoidance of sales tax wherever possible. So, why in the world would I ever consider using a "service" that negates that aspect? Send "AvaTax" to the dumpster!
    Yet another case where choosing "convenience" may result in some loss that was not anticipated (paying tax). Oh, BTW, as soon as Amazon begins collecting sales tax for my state, I will be gone from there as well, because the additional 8 to 9 % will make them non-competetive with other retailers.
    • Not an online purchase...

      If the Credit Card is being swiped, then it isn't an online purchase, so the sales tax will be due.
  • What about in-state online purchases?

    I would hope the app for this also allows for basing tax on the customer's address and ZIP code, as if I sell something to a customer in another city [i]in my own state[/i], one is required to collect the specific sales tax for [i]that[/i] location.

    It would be nice if eBay and/or PayPal would implement this system.

    Frankly, as I typically sell small value items, this often means if I paid myself minimum wage, the time involved for looking up the tax for in-state purchases and then filling out the report at the end of the year exceeds the profit from the item.