Update on eBay Charging Sales Tax on Coins/Bullion
airplanenut
Posts: 22,150 ✭✭✭✭✭
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
Comments
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.
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.
Strange, they are not charging sales tax for me then again in the commonwealth coins and bullion are exempt.
The whole worlds off its rocker, buy Gold™.
I think they're adding states over a period of time. It happens that WA was in the first round.
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.
My state, NC, recently eliminated sales tax on coins, currency and bullion. I hope ebay gets that straight...
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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...
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.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Hope you are right derryb... otherwise looks like sellers will be swamped in tax forms and record keeping.
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
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.
I wonder how they are going to handle dealers and/or others with exemptions, since not every dealer purchase is necessarily for resale.
kind of scary, actually.
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.
ya
and it's just like Whitman charging tax for dealers' sells at a show.
this is ridiculous
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.
The whole worlds off its rocker, buy Gold™.
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.
My Ebay Store
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:
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.
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.
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/
to beat a dead horse as I like to do:
I buy nothing from ebay
I buy on ebay.
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.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
hello BST!
Loves me some shiny!
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.
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.
Next thing there will be sales tax on Christmas trees!
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.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Well it happened.....................This years Christmas tree had sales tax applied in Massachusetts.
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb
Bad transactions with : nobody to date
I am in Maryland. I purchased six 1960 Roosevelt dimes. Part of my logic on buying thru eBay was my state assess 6% tax on bullion purchases under $1,000. Now I have to adjust my math.
Order total:
Price $3.99
Shipping $3.74
Sales tax $0.24
Total charged to Paypal $7.97
Order total:
Price $3.99
Shipping $3.74
Sales tax $0.24
I think that shipping costs killed your deal.
I knew it would happen.
Our host is not a payment processor (as is paypal) and does not allow payment through the BST (as does ebay with credit cards). Therefore they do not fall under the IRS 1099K requirements.
No different than the classified ads in the newspaper, craigslist, or the office "for sale" bulletin board.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
BST is great if payment is made via check, MO, or cash.
Buy if you use PP (non-FF) or any of the other many payment processor then a record of the transaction is kept and tax documents might be generated.
Of course, if PP/FF is used then there is no PP protection.
When PP is used with a BST transaction the sale amount gets applied toward the $20K threshold that triggers a 1099K from paypal. This is because the payment, like an ebay sale, is processed through paypal.
Not sure if a fee free PP transaction is treated as income for 1099K purposes.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I pretty much paid silver melt value, so a good deal for me. Silver melt is about $1.30, so $7.90 silver value. Hard to buy constitutional silver on eBay at melt. I was bidding on rolls at melt and the winning bids are at least $10 over consistently. I targeted a few quarters with $5.50 bids, plus $1.10 shipping. I think they might hold up, who knows. I used to get some halves for silver melt but that doesn't seem to happen any more. Hard to buy them below $8 a piece regardless of silver prices.