Welcome to UNEDA
UNEDA is an alliance of more than 300 of the top used network equipment dealers worldwide. These secondary market suppliers work together to promote industry best practices, ensure the highest standards of product quality, and eradicate counterfeit and fraud in the secondary market.
Important News about Marketplace Fairness Act “MFA”
There is a bill in front of Congress that affects all our businesses and turning a cheek and ignoring what Congress is doing is not an option for us or any Internet business.
The Marketplace Fairness Act (MFA) passed the Senate in May 2013. The MFA or the Internet Sales Tax gives the right to a state to collect sales tax for any item shipped to that state by any firm located anywhere within the USA. This bill, if passed, would severely hurt UNEDA business with large potential collection, reporting and audit burdens. If MFA passes, you will have to collect sales tax, report and potentially be audited for your efforts by 45 states. Here are the issues that concern you:
a. Collecting and Reporting Challenge: Calculating the sales tax is easy, as one pro-MFA congressman said on the floor. However, collecting and reporting the tax is a major burden and you will have to file in 45 different web locations each quarter and collect and report the appropriate tax for over 9600 tax jurisdictions that you may ship to. If you think filling a 1040 once a year will be tough, imagine filling out 45x 1040s, 4x a year. This will be your future if the bill becomes law.
b. Multiple Sales Tax Audits per year: If you collect and report sales tax for a state, you are subject to an audit from that state. Those who have lived through a sales tax audit understand the concept that an auditor must “find something”. Under the MFA, you will be subject to 45 sales tax audits per year. Lets make the scenario even scarier: if your out of state sales are below the $1,000,000 per year exclusion you can still be audited by any state to see if this is accurate. All 45 states have different auditors and different criteria. There is no telling what one state auditor will find as your error and another will not. Even if you claim you are “wholesale” only, you can still be audited.
c. Limited Recourse to Audits or threats of an Audit: If there ever was a place in US history where “taxation without representation” fits the event, it is this bill. If the state of Illinois presents you with a choice: pay this $500 or go through a comprehensive audit that could cost your business thousands, you will write the check. One might reasonably conclude that Illinois will note in your record: “Business from Florida paid $500 audit note, send audit again next year”. They succeeded because each state auditor will know that your business will have limited ability to fight or manage an audit. The potential for State abuse to use this “protection money” or “anti-audit payment” will be potentially huge.
This bill does not affect the brick and mortars who pay one tax rate to one state. A $2m/year brick and mortar collects and pays one tax rate for where packages are picked up. A comparable $2m/year small Internet seller will collect from over 9600 tax jurisdictions and file on 45 different state web sites. The brick and mortar has potential for one sales tax audit per year. The Internet company can be audited 45 times per year.
The MFA bill unexpectedly passed the senate in the spring of 2013 when Sen Harry Reid bypassed the Senate Finance Committee and brought the bill directly to the floor. It passed because large business Republicans and tax minded Democrats voted for it. The “new” generation Republican leadership in the Senate voted overwhelmingly against it.
It is currently stalled in the House Judiciary Committee but could be attached to one of the must pass bills that always comes up just before the government runs out of funds.
YOU can make a difference in fighting this bill. Here are the steps YOU can take:
a. Write to Congress. Use the USPS and email. We can provide a sample letter you can use for your senator or representative. Add names to it, print it, sign it, mail it. Every note that your congressman gets, someone will read it and make a decision to tell someone about it.
b. Make a YouTube video - All you need is your cell phone to do this. Make a YouTube video about how bad the MFA is for your business. Post it. We are making a collection of the videos and sending all the links to members of congress so that they know there is major opposition to the bill.
c. Visit your congressman - call and make an appointment. Now is the time as Congress is not in session. Tell them what they need to hear that this bill is onerous to you and that it will severely hurt your business.
d. Support a lobbying effort – Our members have researched this and met with groups concerned with this issue in DC. Many groups have been fighting the bill for ten years and needs additional “real people” help. Most Congressman have been sold this bill that it levels the marketplace. The unintended consequence of this “Fairness” act is to make business nearly impossible for small – below $20m Internet sales firms.
Please take the time to ACT NOW or when later arrives you will be spending many hours later filling out paperwork, completing your tenth audit for the year or – even worse – sending your resume to Amazon or Walmart.
Our mission is to ensure that the secondary equipment market is an affordable, safe and reliable alternative to purchasing new networking equipment. With combined annual revenues of more than 2 billion dollars, UNEDA members provide millions of pieces of equipment to tens of thousands of customers each year.
High Standards for ProductQuality and Service
As in any industry, the secondary network equipment market includes providers offering products and services at varying levels of quality and integrity. UNEDA is a community of secondary market suppliers committed to maintaining the highest standards in product procurement, inspection, testing, warranty and post-sale service practices. Look for UNEDA members to ensure that you are purchasing equipment from reliable sources.
Exposing & Prosecuting Counterfeit and Fraud
Original equipment manufacturers (OEMs) acknowledge that counterfeit has penetrated their authorized channel, yet there are few resources publicly available to educate buyers against this threat. With unmatched experience in current and past-generation equipment, secondary market equipment providers are the frontline in the battle to protect buyers from counterfeit, theft and fraud in the secondary market. UNEDA members work closely with various law enforcement agencies to identify and prosecute offenders.