ebay and sales tax

jay0791

Seems like sellers are having sales tax added to their invoice.
Its apparently automatic within my state now new York
bought 2 items and seller did not add it on ebay did

and again from calif to NY tax was added and I'm sure its not on the ebay tax list.

anyone know whats going on ?

JRR300

Many states, in an eternal search for revenues, have realized that internet sales have not been taxed, so certain, not all, states have passed down determinations that these sales are taxable. They then go after the larger sellers (Amazon, EBAY etc) to enforce the collection of these taxes and make them aware that they will be subject to audits. As an accountant, we know that when the states come in for examinations, they always leave with money in their pockets. Therefore the retailers comply with the regulations to avoid any type of assessment. You will notice that any purchases will show the amount of the transaction paid to the seller and the tax amount paid to EBAY. I do believe that this is what is currently happening here.

1951WheatiesPremium

@JRR300 said:
Many states, in an eternal search for revenues, have realized that internet sales have not been taxed, so certain, not all, states have passed down determinations that these sales are taxable. They then go after the larger sellers (Amazon, EBAY etc) to enforce the collection of these taxes and make them aware that they will be subject to audits. As an accountant, we know that when the states come in for examinations, they always leave with money in their pockets. Therefore the retailers comply with the regulations to avoid any type of assessment. You will notice that any purchases will show the amount of the transaction paid to the seller and the tax amount paid to EBAY. I do believe that this is what is currently happening here.

You forgot one part - these two group conspire together against the consumer. State gets more tax revenue money from eBay and don’t be shocked when the actual tax paid to eBay is a accidentally and totally not on purpose a few extra cents (times a billion customers). I don’t need to tell you that eBay will not issue refunds and your complaints with the state will be heard but not acted upon.

C’est la vie said the old folks,
IT GOES TO SHOW YOU NEVER CAN TELL!!!!

1951WheatiesPremium

@jay0791 said:
Seems like sellers are having sales tax added to their invoice.
Its apparently automatic within my state now new York
bought 2 items and seller did not add it on ebay did

and again from calif to NY tax was added and I'm sure its not on the ebay tax list.

anyone know whats going on ?

See above for the reality of it.

For the record, eBay disclosed this change in a few different emails, @jay0791

And it’s adding significant costs to cards, sadly.

coinspacks

i had tax added to some items i bought from ebay and the seller was in china

JRR300

You forgot one part - these two group conspire together against the consumer. State gets more tax revenue money from eBay and don’t be shocked when the actual tax paid to eBay is a accidentally and totally not on purpose a few extra cents (times a billion customers). I don’t need to tell you that eBay will not issue refunds and your complaints with the state will be heard but not acted upon.

C’est la vie said the old folks,
IT GOES TO SHOW YOU NEVER CAN TELL!!!!

I'm not defending anyone here, but EBAY has no choice when it come to this. When the states issue a determination like this, they have no choice but to comply. As a business, when the state comes in to review your records and determine that you didn't collect the proper sales tax, you the business must pony up the shortfall. The state doesn't take no for an answer and "I didn't realize that sale was taxable" is not a valid defense. I know that it is not every state that has made this determination, although I'm sure the ones that haven't will soon follow.

grote15

@coinspacks said:
i had tax added to some items i bought from ebay and the seller was in china

All New York buyers now pay sales tax on ebay regardless of seller location.

JRR300

the only thing that matters is the location of the buyer and the tax laws in that particular state. EBAY will adhere to the laws in the state of the buyer.

jay0791

TY for replies.
I know ebay must comply. I am a sole proprietor in NYS with a tax number.

Not a sports card dealer where this would help.

I guess our collections just were devalued by 8%

Another question?? If one did have a sports card tax number does ebay report your buys and sells?
You might initially get by the sales tax but?..…………..

I would expect there might be a large run on getting a tax #

Zimmtoyou

@JRR300 said:

You forgot one part - these two group conspire together against the consumer. State gets more tax revenue money from eBay and don’t be shocked when the actual tax paid to eBay is a accidentally and totally not on purpose a few extra cents (times a billion customers). I don’t need to tell you that eBay will not issue refunds and your complaints with the state will be heard but not acted upon.

C’est la vie said the old folks,
IT GOES TO SHOW YOU NEVER CAN TELL!!!!

I'm not defending anyone here, but EBAY has no choice when it come to this. When the states issue a determination like this, they have no choice but to comply. As a business, when the state comes in to review your records and determine that you didn't collect the proper sales tax, you the business must pony up the shortfall. The state doesn't take no for an answer and "I didn't realize that sale was taxable" is not a valid defense. I know that it is not every state that has made this determination, although I'm sure the ones that haven't will soon follow.

Zimmtoyou

It’s easy to understand why EBay has to automatically charge the state specific charges for that particular state’s tax rate...WHAT IS TOTALLY NOT EASY TO UNDERSTAND IS IF EBAY TAKES A % FROM SELLERS OR BUYERS FOR THE COLLECTION OF THIS TAX. THE SAME I CAN SAY ABOUT EBAY TAKING A % OF THE SHIPPING CHARGE ONTO SELLERS...10% Final Value Fee, Shipping Charge %, + PayPal Fee...when your attempting to price competitively against/with super high value sellers a seller who sells as more of a hobby isn’t just held back by how EBay ranks your listing so low, requiring more work/time for the seller to get items sold...But it’s the reality...At least when you call them, you usually get someone pretty quick...unlike so many other companies Customer Service Departments.

LarkinCollector

For those that live in a state where eBay is collecting sales tax, does the entire transaction get taxed including S&H or just the purchase price?

JRR300

Again, I believe each state determines what is the base for the tax. I remember that a florist had to charge tax on the delivery charge because it was part of the transaction and they were collecting the money for themselves as they were making the delivery. By that same interpretation, If the shipping is thru an outside concern (USPS, FED EX, UPS) it would seem to me there should not be tax on the S&H. Not 100% sure though. When it comes to dealing with gov't agencies, logic doesn't always apply.

LarkinCollector

Just curious since I've started seeing more outrageous shipping charges with low asking price for items again ($0.99 item w/$22 S&H for something that could ship in a bubble mailer for ~$3). Reminds me of the days before eBay started charging FVFs on shipping, so wasn't sure if it's some seller's attempt to minimize the taxable portion of the sale.

goldenhawk

The last 2 times that i purchased items from Heritage they charged me sales tax on the bid price the buyer's premium & the shipping cost.I know they shouldn't charge me tax on shipping. If i buy an item for 100 + 20 for BF's say 10 for shipping & then tax on 130 =7.80 so now i'm paying 27.8% buyer's premium over my bid price. I quit bidding at Heritage because of this.

JRR300

the reasoning behind the tax on the shipping is that they actually mark up the actual shipping cost. since there is a markup involved, it becomes a taxable item in the state's interpretation. If they only passed on the actual shipping, it would not be taxable. Don't necessarily agree with the law interpretation but it is what it is. all the states are doing is looking for ways to bring in additional revenues!!!!!!!

coinpalice

I noticed a drop off in sales to the states that are now getting taxed

jay0791

I can say my ebay purchases are going to be considerably fewer
This gives those buyers from non tax states a considerable advantage in bids.

JRR300

My guess is it doesn't really affect the buyer who wants a particular item and is willing to pay whatever it takes. Will have more impact on the collector who is looking to buy an item and not overpay. Really not much different than what it is now except that your top bid will be a little lower.

fiveniner

By the end of the year all eBay will tax all items according to state tax rates.On July 1st a large amount of states went into effect and if you buy from that particular state eBay automatically adds the tax to the invoice.No way around it.It is what it is.I have been getting surprise tax charges lately.🤑

tander123

What about sales tax on legal tender? When I look at Utah state sales tax law, it says legal tender is exempt from sales tax. Tried to buy 90% silver and sales tax was added

LarkinCollector

eBay would need a team of several hundred added to it's staff to monitor individual state tax law intricacies and ensure listings are in the appropriate categories for tax exempt items (while raising fees on sellers to compensate for their additional burden). I'm sure it's far easier for them to just blanket tax everything.