by: Daryl Cornell
March 30, 2017
Internet Sales Tax. It seems that not a day goes by without reading or hearing about how states should require all companies to collect sales tax on internet sales. ATMGurus believes that this is a terrible idea – but not for the reasons you might think. We also believe that readers should hear the other side of the story which is not being told.
The retail ATM industry, like many other industries in the U.S., is both fragmented and specialized. ISOs around the country purchase their ATMs and parts from a network of manufacturers and grey market suppliers. These companies generally operate without a physical retail presence, meaning that orders are placed over the phone or via the web and then shipped to customers or ATM sites. While ISOs do have a choice of ATM and parts providers, this specialized market is not served by the likes of Amazon or Wal-Mart. The nationwide implementation of an internet sales tax would be bad news for both ATM/ parts suppliers and ISOs, increasing costs far beyond any incremental sales tax and almost certainly decreasing competition.