Appears seller will continue to be responsible for collecting different states sales taxes and remitting them to the proper state with the exception of the states at the above site where ebay will handle all of the taxing and remitting. Save above link, will be continually updated by ebay. As states get added to ebay's "list" those states will no longer be a hassle for a seller since ebay will be handling all of the required actions for each state.
From the link: Once eBay starts to collect tax in the above states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting and remitting sales tax. The collection process will apply to all sales, whether the seller is located in or outside of the United States. When a buyer purchases an item on eBay, and the ship to address is one of the above states, eBay will calculate and add the applicable sales tax at checkout. The buyer will pay both the cost of the item along with the sales tax. eBay will collect and remit the tax. Sellers are not able to opt out of selling items into the states listed above or opt out of eBay automatically collecting sales tax.
No Way Out: Stimulus and Money Printing Are the Only Path Left
@wondercoin said:
Andy. EBay does not plan on collecting sales tax from You, or anyone in New York, at this time - agreed? They have started collecting it from MN and WA residents only and will start collecting it next month from IA residents. More states to follow in April - July, but not NY. So, no issue for you right now. Storm clouds ahead- I fear so!
Wondercoin.
No sales tax in WA state for coins/bullion, so if it is coins/bullion related, not sure why ebay would try to collect it "on behalf of WA state".....
They already are trying to collect. Every coin or bullion item I've put in my cart, shows a tax to be collected on check out. I have officially changed my shipping address to my parents address in Oregon, just across the river.
I'm ready to go start dumping tea in the harbor!!
I had some ebucks to use, and used the 8% the other day, and purchased a 1/10oz from apmex. I made sure to look....there was no attempt to charge me tax....
Edited to add:
I just "played with" a dozen listings under the Coins and Paper Money category (half cents, bullion, gold, etc) from sellers big and small. None of them showed tax when I put them in my cart to buy.
Looking at another item, NOT in the Coins and Paper Money category, I WAS going to be charged tax if I went through with the purchase.
May screw up things for people that used to get deals from bullion/coins in the non-coin category when coupons would only work outside of the coins/bullion categories....
@jtlee321 - care to share a link to one of the items charging you? I can look at it and see if it charges me as well.
Here are some screen shots. 2 are from APMEX of which one is listed under the bullion category another listed under US Coins and the 3rd from a different seller selling in the US Coins category. Everything I try to add to my cart using my Washington shipping address adds tax.
Note that there are currently two ways a buyer may get charged a state sales tax on ebay:
Ebay algorithm automatically charges the tax based on their current, growing "list." In this case the seller does not see the tax at his end of the transaction since ebay is handling the entire process.
The seller is complying with various state tax laws and including the tax in his/her listing for states not included in ebay's "list."
No Way Out: Stimulus and Money Printing Are the Only Path Left
Whatever sales tax we are paying we will all mostly make it all up and then some in the capital losses we incur by selling coins that aren't as worth as much as paid for.
@segoja said:
This issue will be fun for years to come.
I'll bet it will be over in a year or two. The Federal government will come to the rescue, using their authority to regulate interstate commerce. This is exactly the sort of situation that the framers of the Constitution envisioned when they granted that authority. Unfortunately, we all know what happens to us when the Federal government takes charge. One way or another, this is not going to be any fun.
Andy Lustig
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
@ms70 said:
I was just wondering about this earlier. I'm not a dealer, just a collector and I was going to list a few duplicates when the sales tax section came up while I was filling out the listing. I backed out and figured I'd ask my tax guy.
Even if I sell just a few coins per year and make just a couple of bucks I have to collect sales tax and pay income tax?
Isn't there a threshold amount where there's no tax until met?
What about if I sell at a slight loss?
What about if I sell at a profit, I assume I'm ONLY taxed on the difference between what I bought and sold for?
Is PayPal and eBay reporting this to the IRS and the states?
I tried reading the explanation on eBay but it wasn't really specific to my state. So I found the website on this very issue for my state's website...... totally written in Martian.
Just don't sell on eBay, try other platforms. I stopped selling on ebay 3 years ago & honestly don't miss it
The Wayfair Case put a sales tax in place on e-commerce in states where a sales tax is applicable. Each state has a different sales threshhold amount for requiring a vendor to have a sales tax permit and charge sales tax. The average vendor is not going to be able to figure this out, so the venue assisting the vendor is treated as the agent's vendor. In the case of E-Bay, this means where there is a sales tax, the sales threshhold will be met. E-bay is therefore responsible for collecting the tax and paying it to the various state and local authorities. Expect them to do this in all jurisdictions that have an applicable sales tax.
As Andy mentioned, as a dealer, you should be theoretically able to have your re-sale permit on file with E-Bay so sales to re-sellers would not be assessed sales tax. E-Bay probably won't do this because it is extra work for them, and unless they can figure out a way to be compensate for this, they don't want to be bothered.
"Vou invadir o Nordeste, "Seu cabra da peste, "Sou Mangueira......."
@ms70 said:
I was just wondering about this earlier. I'm not a dealer, just a collector and I was going to list a few duplicates when the sales tax section came up while I was filling out the listing. I backed out and figured I'd ask my tax guy.
For now, the small seller can work around the "tax section" by entering "Guam" and "1%." Leaving the tax section blank will prevent you from posting the listing. When "relisting" an item, the tax section does not come up for me. But if, during a relisting, I change the PP account to send the payment to the tax section does come up.
No Way Out: Stimulus and Money Printing Are the Only Path Left
As Andy mentioned, as a dealer, you should be theoretically able to have your re-sale permit on file with E-Bay so sales to re-sellers would not be assessed sales tax. E-Bay probably won't do this because it is extra work for them, and unless they can figure out a way to be compensate for this, they don't want to be bothered.
They will have to, if not doing so already, figure out a way to protect re-sellers such as APMEX or they will likely loose a lot of volume sellers. Remember, this tax thing affects all ebay sales, not just coins.
No Way Out: Stimulus and Money Printing Are the Only Path Left
@ms70 said:
I was just wondering about this earlier. I'm not a dealer, just a collector and I was going to list a few duplicates when the sales tax section came up while I was filling out the listing. I backed out and figured I'd ask my tax guy.
Even if I sell just a few coins per year and make just a couple of bucks I have to collect sales tax and pay income tax?
Isn't there a threshold amount where there's no tax until met?
What about if I sell at a slight loss?
What about if I sell at a profit, I assume I'm ONLY taxed on the difference between what I bought and sold for?
Is PayPal and eBay reporting this to the IRS and the states?
I tried reading the explanation on eBay but it wasn't really specific to my state. So I found the website on this very issue for my state's website...... totally written in Martian.
Just don't sell on eBay, try other platforms. I stopped selling on ebay 3 years ago & honestly don't miss it
While they may be under the radar, there are no on-line selling platforms that are exempt from the various new state tax laws that affect out of state on-line sellers. Ebay is getting in front of it and providing the logistics to do it on behalf of their sellers. Like the 1099 requirements that were forced on on-line payment processors, the states were shrewd in making their sales tax laws also applicable to on-line sales facilitators (such as ebay and Amazon). These facilitators have no choice but to comply. It is pretty much a service they are being forced to provide their sellers. At least, for now, ebay is eating the overhead to comply.
No Way Out: Stimulus and Money Printing Are the Only Path Left
@MrEureka said:
Now that eBay is starting to collect sales tax on all sales in an ever-expanding number of states, how does a legitimate dealer with a resale certificate avoid paying sales tax on his business purchases?
The sales tax paid on an item for resale can be applied to the cost of the item (basis). The profit from the resale will be reduced by the increase in its cost. Doesn't this offset the cost of paying the tax in the same manner as not paying sales tax upon inventory purchase and reselling at the lower cost basis?
No Way Out: Stimulus and Money Printing Are the Only Path Left
The sales tax paid on an item for resale can be applied to the cost of the item (basis). The profit from the resale will be reduced by the increase in its cost. Doesn't this offset the cost of paying the tax in the same manner as not paying sales tax upon inventory purchase and reselling at the lower cost basis?
This statement makes no sense from a business perspective. The end cost goes up by the amount of the tax, which hurts the end buyer. Higher prices mean lower volume...basic econ 101
Comments
Helpful ebay tax site
Appears seller will continue to be responsible for collecting different states sales taxes and remitting them to the proper state with the exception of the states at the above site where ebay will handle all of the taxing and remitting. Save above link, will be continually updated by ebay. As states get added to ebay's "list" those states will no longer be a hassle for a seller since ebay will be handling all of the required actions for each state.
From the link:
Once eBay starts to collect tax in the above states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting and remitting sales tax. The collection process will apply to all sales, whether the seller is located in or outside of the United States. When a buyer purchases an item on eBay, and the ship to address is one of the above states, eBay will calculate and add the applicable sales tax at checkout. The buyer will pay both the cost of the item along with the sales tax. eBay will collect and remit the tax. Sellers are not able to opt out of selling items into the states listed above or opt out of eBay automatically collecting sales tax.
No Way Out: Stimulus and Money Printing Are the Only Path Left
ShadyDave... information from eBay itself via searches of misc. eBay press releases and communications.
Wondercoin.
Here are some screen shots. 2 are from APMEX of which one is listed under the bullion category another listed under US Coins and the 3rd from a different seller selling in the US Coins category. Everything I try to add to my cart using my Washington shipping address adds tax.
Note that there are currently two ways a buyer may get charged a state sales tax on ebay:
No Way Out: Stimulus and Money Printing Are the Only Path Left
Whatever sales tax we are paying we will all mostly make it all up and then some in the capital losses we incur by selling coins that aren't as worth as much as paid for.
I'll bet it will be over in a year or two. The Federal government will come to the rescue, using their authority to regulate interstate commerce. This is exactly the sort of situation that the framers of the Constitution envisioned when they granted that authority. Unfortunately, we all know what happens to us when the Federal government takes charge. One way or another, this is not going to be any fun.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
So far I know that would be really tough to do. However, some sites such as FinancePolice might come with a solution to this.
Just don't sell on eBay, try other platforms. I stopped selling on ebay 3 years ago & honestly don't miss it
The Wayfair Case put a sales tax in place on e-commerce in states where a sales tax is applicable. Each state has a different sales threshhold amount for requiring a vendor to have a sales tax permit and charge sales tax. The average vendor is not going to be able to figure this out, so the venue assisting the vendor is treated as the agent's vendor. In the case of E-Bay, this means where there is a sales tax, the sales threshhold will be met. E-bay is therefore responsible for collecting the tax and paying it to the various state and local authorities. Expect them to do this in all jurisdictions that have an applicable sales tax.
As Andy mentioned, as a dealer, you should be theoretically able to have your re-sale permit on file with E-Bay so sales to re-sellers would not be assessed sales tax. E-Bay probably won't do this because it is extra work for them, and unless they can figure out a way to be compensate for this, they don't want to be bothered.
"Seu cabra da peste,
"Sou Mangueira......."
For now, the small seller can work around the "tax section" by entering "Guam" and "1%." Leaving the tax section blank will prevent you from posting the listing. When "relisting" an item, the tax section does not come up for me. But if, during a relisting, I change the PP account to send the payment to the tax section does come up.
No Way Out: Stimulus and Money Printing Are the Only Path Left
They will have to, if not doing so already, figure out a way to protect re-sellers such as APMEX or they will likely loose a lot of volume sellers. Remember, this tax thing affects all ebay sales, not just coins.
No Way Out: Stimulus and Money Printing Are the Only Path Left
While they may be under the radar, there are no on-line selling platforms that are exempt from the various new state tax laws that affect out of state on-line sellers. Ebay is getting in front of it and providing the logistics to do it on behalf of their sellers. Like the 1099 requirements that were forced on on-line payment processors, the states were shrewd in making their sales tax laws also applicable to on-line sales facilitators (such as ebay and Amazon). These facilitators have no choice but to comply. It is pretty much a service they are being forced to provide their sellers. At least, for now, ebay is eating the overhead to comply.
No Way Out: Stimulus and Money Printing Are the Only Path Left
The sales tax paid on an item for resale can be applied to the cost of the item (basis). The profit from the resale will be reduced by the increase in its cost. Doesn't this offset the cost of paying the tax in the same manner as not paying sales tax upon inventory purchase and reselling at the lower cost basis?
No Way Out: Stimulus and Money Printing Are the Only Path Left
The sales tax paid on an item for resale can be applied to the cost of the item (basis). The profit from the resale will be reduced by the increase in its cost. Doesn't this offset the cost of paying the tax in the same manner as not paying sales tax upon inventory purchase and reselling at the lower cost basis?
This statement makes no sense from a business perspective. The end cost goes up by the amount of the tax, which hurts the end buyer. Higher prices mean lower volume...basic econ 101
Ike Specialist
Finest Toned Ike I've Ever Seen, been looking since 1986
Everyone pays more, in the end. And incidentally that's where we all take it, too.
``https://ebay.us/m/KxolR5