State tax collections by individuals not businesses
jesbroken
Posts: 10,609 ✭✭✭✭✭
What does the new law state regarding individuals selling items. How does one file with the state for taxes collected if I don't have a state business license number. I live in the state of West Virginia.
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
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You're selling, you're responsible.
Most states are that way.
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What new law are you referring to?
When I open an ebay auction it automatically asks for 6% sales tax on the auction and no way to remove it, that I can see. I've never seen this before, so I consider it new.
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
Suggest you ask a WV accountant for advice and an explanation. If there is a conflict between your state law and ebay's sales tax collection procedure, the accountant can help you resolve the problem quickly and efficiently.
The states are exerting their "right" to collect taxes on "mail order" items which up to this point has depended solely upon the honor of the purchaser and which hardly anyone honored. Instead of thousands of sellers each collecting ST and remitting said collected taxes to the states, the big boys like eBay have been coerced into doing it for them.
When eBay collects sales tax, they remit it to the appropriate state. It's a separate transaction for the buyer (they'll have to charges appear on their credit card--one for the item+shipping, another for the sales tax) and you only see the money you've been used to seeing. You don't have to take any action with regard to the sales tax. When you send an invoice, eBay simply shows it to let you know it's being collected.
Thanks apn. I appreciate the info.
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
If the tax bothers you then don't buy off of eBay. Simple as that. As a buyer you pay it; as a seller eBay collects it on your behalf.
This is true of the 'new' states that have opted in on this internet tax. I have always been, and still am, required to collect from NY residents. ebay does nothing in this regard.
If you ship something to Iowa then Iowa sales tax is due. Do you want to collect the sales tax and send it to Iowa [and other states of a similar nature] or would you prefer someone like eBay [who is better equipped] to do it for you? This internet/mail order tax has always been due, but it was never getting paid. It's really nothing new.
When creating some new ebay listings a seller might see a section that requires him to insert a state and tax rate before being able to proceed. I found that one can work around this by entering "Guam" and "1%."
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Actually, it IS NEW. It was only last year that the Supreme Court removed the legal prohibition against taxing sales across state borders.
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