Online retailers and booksellers have long been an integral part of the traditional Chinese economy, but for those outside of the region, their presence can be challenging.
The United States and other western nations have taken a dim view of online bookstores, and the Chinese government is not too keen on such a move.
Yet, the popularity of online stores, and their ability to be found anywhere, is growing, and online booksellings are becoming increasingly popular.
With the proliferation of online retailers, the United States has seen an influx of foreign investors interested in investing in Chinese companies and other companies in China, such as Amazon, Alibaba, and WeChat.
As the US government considers new laws to combat tax evasion, and as more and more Chinese companies are expanding their operations overseas, online bookselling has been a major source of income for Chinese companies, with an estimated $60 billion in sales in 2016, according to China Digital Times.
Despite the potential for the online bookstore to become a major part of China’s economy, the government has made it clear that online bookshops are illegal in the country, and that they must abide by the same regulations as any other retail store.
So, how can an online bookshop be legally located in the United State?
In a nutshell, an online bookstore is required to register with the US Internal Revenue Service (IRS), which requires that they meet certain requirements to be listed as a retailer.
According to the National Book Foundation, an organization that provides information on books, the IRS lists books that are not required to be registered as retailers.
However, since they do not have to pay any tax on their sales, these books do not need to be treated as a taxable asset.
Additionally, these online book sellers must have a minimum of 50 percent of their profits going toward their primary business, and a minimum total of $10 million for all book sales.
Thus, if an online retailer wishes to be eligible for the tax exemption, they must be located in one of the 50 states and the District of Columbia, and they must register as a bookseller with the IRS.
But since many online book stores do not register with a state, the tax code may not be clear on what qualifies as a “good-faith” business activity.
For example, a bookstore may not operate in Alabama if it does not meet all the requirements for the sale of books to the public, or it may not have a physical presence in New York, or even if the store is only online.
In short, if a book is not listed as an online store, it is not eligible to claim the exemption.
There are some ways that an online-only bookstore can meet the requirements of the taxcode, though, such for example, by listing its business as a general merchandise store, or by listing a physical location, which would allow the company to be subject to the same requirements as a physical bookstore.
These two scenarios, however, are not very common.
Some online book dealers have been offering a variety of services, such in the form of free shipping and low prices, that make it easy for customers to buy books online.
As an online seller, however to be considered an online business, a book needs to have at least one physical location in the U.S.
A physical location is a place where goods are located, which is a separate issue from whether the business is open for business.
What to do if your online bookstore does not qualify?
If your online book store does not comply with the rules for an online retail store, there are two possible options: 1.
Get a tax exemption from the IRS and then apply to the IRS to register as an authorized dealer.
Apply for a state or local business license, and then register as one with the state.
You can apply for the exemption by going to the US Department of Commerce website and checking “Apply for an Online Bookseller License,” and clicking “Apply” in the “State and Local Business Licenses” box.
Once you are approved, you can apply by completing a form and submitting it to the state of your residence.
It will take a few weeks, but once you receive your license you can begin operating your business.