Do you have to pay taxes on internet purchases?

Short answer: Yes, your obligation to pay sales taxes for online purchases has nothing to do with where you bought them, only where you receive them. This is called "sales and use tax". You must pay EXACTLY the same tax on something whether you purchase it locally or have it delivered from somewhere else. If it's exempt locally, then it's exempt by mail order or internet order. If it's not exempt, you must still pay the use tax in the state where you live.

It has nothing to do with "the feds". Sales tax law is completely state oriented.

It also has little or nothing to do with whether the seller has the power to collect the taxes. If they DON'T collect the taxes, you still owe them. If they DO collect the taxes, then you can use that as a "credit" toward what you would have had to pay (e.g., they collect 5 percent, but your state required 8 percent, you would still owe 3 percent on goods delivered to your state).

The below is simply wrong. It is absolutely entirely well defined. mailorder, phone order, internet, cross border, etc all of these have been around a long time. If the seller in the State your buying from does not have enough "nexus" to be or is not willingly lisc. in the State they are selling into they CANNOT collect sales tax for that State, (that is handling a trust fund unlicensed - not allowed). However, the sale is taxable - under the corresponding USE Tax laws each state has. The seller is obligated to pay the use tax. (There are issues like delivery and when title changes hands, etc., but the fact is - it is taxable to the buyer one way or another. Generally the Feds DO NOT have the authority (or interest) to make laws over State sales taxes).

(Comment above) My understanding is that if you are purchasing over the internet from a store or person from a different state, then you do NOT have to pay sales taxes. If the seller is in state A and the buyer is in State B, then there is not a clear answer as to were the sale actually took place. I believe congress is in the process of trying to close these loop holes, but the party rages on until that day. I avoid buying form sellers within my own state for just that reason.AnswerSales Tax obviously.

Oh man is this a can a worms!

Presuming the item is taxable in the State where you took possessing and are using it, YES.

Purchases on the internet, TV, mailorder, etc. do not in any way change the taxability of the item. Only who may have to collect the tax.

If the business your buying from has enough of something called nexus (or business presence) in a State that it is required to collect sales taxes and be a licensed sales tax vendor - it must do so for any order delivered into that State. The fact you made your order over the internet (phone, mail, smoke signal, etc) instead of at the counter at their store down the street makes no difference. They must collect the tax and remit it to the proper tax authority.

However, if the seller doesn't have to be licensed for sales tax in that State, it doesn't mean the item isn't taxable, just that the Vendor is NOT required to collect the tax. The burden of submission of the tax revenue is thus moved from the vendor to the buyer. It now becomes the obligation of the buyer, under the Use Tax part of "sales and use tax laws", to pay the tax to the State. Most states make a line on their income tax returns for people to do so, and if your a business buying from non licenced out of state vendors, you should already know the places to record this tax (and/or exempt documentation), all of which are audited regularly.

So to answer the question simply, if you buy Online, Mail Order, etc... YOU are required by law to pay tax to your local agencies. The online vendor is not required to charge sales tax but you are required to pay it.