Update on eBay Charging Sales Tax on Coins/Bullion

airplanenutairplanenut Posts: 18,930 ✭✭✭✭✭

First off, I am not trying to make this thread political in any way. If you want to debate whether sales tax should be charged on coins/bullion (or anything else), go somewhere else. I'm simply passing along a message that I think is valuable to know.

eBay started collecting sales tax automatically on January 1 (at least for some states). In doing so, they ignored sales tax exemptions, and if you go to purchase something right now with an address in an affected state, sales tax will be charged on anything. Many states--my state of Washington included--have sales tax exemptions on some/all sales of coins and bullion, so this is big problem as eBay sales are now actively charging sales tax when there is none on the books.

I spoke with an eBay rep today (I may not have a direct line to the CEO, but I do sell enough that I get more helpful reps than standard support) who said a memo just came out to them about this problem and that a fix is in the works, to be rolled out next week. Will this definitely happen? It's eBay, so I don't know. But I did think it would be useful information to know if you're affected by this.

Jeremy

JK Coin Photography - eBay Consignments | High Quality Photos | LOW Prices | 20% of Consignment Proceeds Go to Pancreatic Cancer Research

Comments

  • MsMorrisineMsMorrisine Posts: 22,771 ✭✭✭✭✭

    It's like whitman charge sales tax instead of the dealers.

    Does ebay have tax IDs everywhere ... Even though it's the sellers (or buyers come tax time) who should be collecting it.

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • OPAOPA Posts: 15,449 ✭✭✭✭✭

    Some of the big bullion dealers jumped the gun and started charging sales tax in November, if you happen to live in a State that has a sales tax on bullion or coins.

    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • blitzdudeblitzdude Posts: 1,562 ✭✭✭✭✭

    Strange, they are not charging sales tax for me then again in the commonwealth coins and bullion are exempt.

  • airplanenutairplanenut Posts: 18,930 ✭✭✭✭✭

    @blitzdude said:
    Strange, they are not charging sales tax for me then again in the commonwealth coins and bullion are exempt.

    I think they're adding states over a period of time. It happens that WA was in the first round.

    JK Coin Photography - eBay Consignments | High Quality Photos | LOW Prices | 20% of Consignment Proceeds Go to Pancreatic Cancer Research
  • MorganMan94MorganMan94 Posts: 1,193 ✭✭✭✭✭

    I received an email for Iowa that it is effective 2/1. Iowa has no sales tax on coins or bullion so I hope they have it fixed by then.

  • ashelandasheland Posts: 13,214 ✭✭✭✭✭

    My state, NC, recently eliminated sales tax on coins, currency and bullion. I hope ebay gets that straight...

  • tincuptincup Posts: 3,199 ✭✭✭

    So... how does this affect the seller?? Since ebay is now collecting sales tax (supposedly on behalf of the seller, since it is the seller that traditionally is the one who has to do so), who has to file the paperwork at the end of the year?? Will ebay notify the seller on amounts collected for each state... and the seller will now have to file the paperwork for each of the states?? What a mess, if so...

    ----- kj
  • derrybderryb Posts: 26,805 ✭✭✭✭✭
    edited January 9, 2019 10:17AM

    Hopefully the ebay algorithm will take care of collecting and paying the state taxes with the ebay seller not having to fool with it at all. It's the least they can do considering the cost of the seller fees.

    All debt-based consumption steals from the future to gratify the present. It is tomorrow’s consumption pulled forward. It signs a perpetual check against an overdrawn future.

  • tincuptincup Posts: 3,199 ✭✭✭

    Hope you are right derryb... otherwise looks like sellers will be swamped in tax forms and record keeping.

    ----- kj
  • BochimanBochiman Posts: 24,644 ✭✭✭✭✭

    Like I said in your other thread on this, AP, I bought some bullion (20 SAEs) within last 2 weeks, as well as a $10 PCGS Indian. Neither time did ebay/seller (Apmex and someone else) attempt to charge me sales tax....I was watching, just in case, because, as you know, our state doesn't tax coins/bullions.

    I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment

  • BAJJERFANBAJJERFAN Posts: 29,343 ✭✭✭✭✭

    @tincup said:
    Hope you are right derryb... otherwise looks like sellers will be swamped in tax forms and record keeping.

    eBay is probably doing it so they won't lose sellers over it. Of course it's the buyers who pay it, but not much eBay can do about that.

  • BAJJERFANBAJJERFAN Posts: 29,343 ✭✭✭✭✭

    @derryb said:
    Hopefully the ebay algorithm will take care of collecting and paying the state taxes with the ebay seller not having to fool with it at all. It's the least they can do considering the cost of the seller fees.

    I wonder how they are going to handle dealers and/or others with exemptions, since not every dealer purchase is necessarily for resale.

  • maplemanmapleman Posts: 624 ✭✭✭✭
    edited January 10, 2019 6:05AM


    kind of scary, actually.

  • airplanenutairplanenut Posts: 18,930 ✭✭✭✭✭

    @Bochiman said:
    Like I said in your other thread on this, AP, I bought some bullion (20 SAEs) within last 2 weeks, as well as a $10 PCGS Indian. Neither time did ebay/seller (Apmex and someone else) attempt to charge me sales tax....I was watching, just in case, because, as you know, our state doesn't tax coins/bullions.

    The change went into effect on 1/1, so the last 2 weeks could have been 2018. Here's a screenshot I just took. It's no APMEX that's setting the sales tax, but eBay doing it automatically.

    JK Coin Photography - eBay Consignments | High Quality Photos | LOW Prices | 20% of Consignment Proceeds Go to Pancreatic Cancer Research
  • MsMorrisineMsMorrisine Posts: 22,771 ✭✭✭✭✭

    ya

    and it's just like Whitman charging tax for dealers' sells at a show.

    this is ridiculous

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • blitzdudeblitzdude Posts: 1,562 ✭✭✭✭✭

    @airplanenut said:

    @Bochiman said:
    Like I said in your other thread on this, AP, I bought some bullion (20 SAEs) within last 2 weeks, as well as a $10 PCGS Indian. Neither time did ebay/seller (Apmex and someone else) attempt to charge me sales tax....I was watching, just in case, because, as you know, our state doesn't tax coins/bullions.

    The change went into effect on 1/1, so the last 2 weeks could have been 2018. Here's a screenshot I just took. It's no APMEX that's setting the sales tax, but eBay doing it automatically.

    Still no sales tax for those of us in the Commonwealth on eBay coin/bullion purchases but did start seeing this on multiple accounts.....

    Quick verify and it allows purchase. Seems under $1K no verification required, over $1K get the message. Never happened before.

  • bigjpstbigjpst Posts: 2,434 ✭✭✭✭

    Do you see any way for a seller to see if ebay is charging our customers tax on a purchase? I collect and remit sales tax in NV(not that anyone in NV will buy from me on ebay since I started doing it) . If they are collecting tax on my behalf I wouldn't want to report it twice. Although I'm sure my state, and at least one forum member here would like it.

  • OPAOPA Posts: 15,449 ✭✭✭✭✭

    @airplanenut said:

    @Bochiman said:
    Like I said in your other thread on this, AP, I bought some bullion (20 SAEs) within last 2 weeks, as well as a $10 PCGS Indian. Neither time did ebay/seller (Apmex and someone else) attempt to charge me sales tax....I was watching, just in case, because, as you know, our state doesn't tax coins/bullions.

    The change went into effect on 1/1, so the last 2 weeks could have been 2018. Here's a screenshot I just took. It's no APMEX that's setting the sales tax, but eBay doing it automatically.

    Maybe.....However, this is on APMEX ebay listings. eBay maybe handling those not on the below list.

    Seller collects sales tax for items shipped to the following states:

    State   Sales Tax Rate   
    
    Hawaii (HI) 4.712 %  
    Maine (ME)  5.500 %  
    Massachusetts (MA)  6.250 %  
    Mississippi (MS)    8.000 %  
    Ohio (OH)   8.000 %  
    Vermont (VT)    7.000 %  
    
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • airplanenutairplanenut Posts: 18,930 ✭✭✭✭✭

    @OPA said:

    @airplanenut said:

    @Bochiman said:
    Like I said in your other thread on this, AP, I bought some bullion (20 SAEs) within last 2 weeks, as well as a $10 PCGS Indian. Neither time did ebay/seller (Apmex and someone else) attempt to charge me sales tax....I was watching, just in case, because, as you know, our state doesn't tax coins/bullions.

    The change went into effect on 1/1, so the last 2 weeks could have been 2018. Here's a screenshot I just took. It's no APMEX that's setting the sales tax, but eBay doing it automatically.

    Maybe.....However, this is on APMEX ebay listings. eBay maybe handling those not on the below list.

    Seller collects sales tax for items shipped to the following states:

    State Sales Tax Rate

    Hawaii (HI) 4.712 %
    Maine (ME) 5.500 %
    Massachusetts (MA) 6.250 %
    Mississippi (MS) 8.000 %
    Ohio (OH) 8.000 %
    Vermont (VT) 7.000 %

    I just played around with listings from a bunch of sellers. Whether or not WA was listed on the Payment info tab of the listing as having sales tax, eBay added tax to the order. That said, I'd also assume bullion dealers would be smart enough to know which of their products (namely, all of them) don't require ~10% sales tax, which is killer for completing a sale.

    JK Coin Photography - eBay Consignments | High Quality Photos | LOW Prices | 20% of Consignment Proceeds Go to Pancreatic Cancer Research
  • WildIdeaWildIdea Posts: 1,447 ✭✭✭✭✭

    Sales tax is differing amounts from state to state anywhere from who knows what to zero and changing all the time. Are they keeping up with this or just picking a number out of a hat. Should go by tax laws where you take possession.

  • MorganMan94MorganMan94 Posts: 1,193 ✭✭✭✭✭

    @WildIdea said:
    Sales tax is differing amounts from state to state anywhere from who knows what to zero and changing all the time. Are they keeping up with this or just picking a number out of a hat. Should go by tax laws where you take possession.

    It is likely calculated based off the zip code of the shipping address.

  • OPAOPA Posts: 15,449 ✭✭✭✭✭
    edited January 17, 2019 9:11AM

    If I read this correctly, the threshold in charging sales tax is: 200 transactions or 100k in sales annually.

    By early 2019, almost 30 states will require remote sellers to collect and remit sales tax. To date, these states include:

    Alabama
    Colorado
    Connecticut
    Georgia
    Hawaii
    Illinois
    Indiana
    Iowa
    Kentucky
    Louisiana
    Maine
    Maryland
    Michigan
    Minnesota
    Mississippi
    Nebraska
    Nevada
    New Jersey
    North Carolina
    North Dakota
    South Carolina
    South Dakota
    Tennessee
    Utah
    Vermont
    Washington
    West Virginia
    Wisconsin
    Wyoming

    Does my business meet the economic nexus sales tax thresholds?

    Economic nexus laws don’t only affect large internet retailers. Many states sales tax economic nexus policies have a threshold of 200 transactions or $100,000 in sales in the current or previous calendar year. That means they can apply to many small to medium-sized businesses.

    https://www.manta.com/resources/small-business-advice/new-sales-tax-rules-affect-smb/?dest=/resources/small-business-advice/new-sales-tax-rules-affect-smb/

    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • MsMorrisineMsMorrisine Posts: 22,771 ✭✭✭✭✭

    to beat a dead horse as I like to do:
    I buy nothing from ebay
    I buy on ebay.

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • derrybderryb Posts: 26,805 ✭✭✭✭✭
    edited January 17, 2019 8:57AM

    Clicked on the "shipping and payments" tab of one of my own listings and saw this: "Sales tax may apply when shipping to: Minnesota , Washington." Had to be added by ebay.

    All debt-based consumption steals from the future to gratify the present. It is tomorrow’s consumption pulled forward. It signs a perpetual check against an overdrawn future.

  • carew4mecarew4me Posts: 3,204 ✭✭✭

    hello BST!


    Loves me some shiny!
  • tincuptincup Posts: 3,199 ✭✭✭

    I expect to see sales tax charged on shipping.

    I've just done some checking on the sales tax requirements for the state of Nebraska, after the Supreme Court ruling that is affecting everyone. Nebraska charges sales tax for amounts including DELIVERY for items for items to be delivered into Nebraska. While not necessarily the same in other states, I would expect more likely than not. They likely consider delivery a 'service' which is taxable.

    There may be a little hope for a small time seller on ebay. In Nebraska anyways, the requirement to register, and collect sales tax for them, is not required for anyone who sells less than $100,000 or has less than 200 transactions for delivery into the state. While I have not read the Supreme Court ruling, it appears that this may have been the 'limits' in that specific case. Hopefully, other states will follow similar pattern.

    Regardless, this will certainly make it more difficult to sell on ebay, and will certainly affect the bottom line even more.

    ----- kj
  • tincuptincup Posts: 3,199 ✭✭✭

    @carew4me said:
    hello BST!

    The BST is not exempt from the requirements. The only difference... for now... is that our host is not jumping into the fray and collecting sales tax like ebay is; and BST transactions are not as easily tracked as ebay is. Regardless, the same laws apply.

    A concern of mine is that host sites for BST on the internet may start disappearing; if the host decides they may have a potential liability to ensure collection of sales tax. I hope not... but just saying. The Supreme Court ruling has upset quite a bit of business as usual, and repercussions will take awhile to shake out.

    ----- kj
  • s4nys4ny Posts: 1,473 ✭✭✭

    Next thing there will be sales tax on Christmas trees!

  • derrybderryb Posts: 26,805 ✭✭✭✭✭
    edited January 17, 2019 11:10AM

    It is important to not forget that a buyer and not a seller is liable for payment of applicable state sales taxes. While all this adaptation to enforcement of state tax laws may be an inconvenience for the on-line seller, the tax itself will be charged to and paid by the buyer.

    Also, do not forget that there has always been a responsibility for online buyers to inform their state and pay their state applicable sales taxes for online purchases. Recent changes are nothing more than bringing the seller into the equation to make states aware of these sales. Like the 1099's that once did not exist this is nothing more than making third parties responsible for reporting and collecting state taxes.

    All debt-based consumption steals from the future to gratify the present. It is tomorrow’s consumption pulled forward. It signs a perpetual check against an overdrawn future.

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