@coinpalice said:
someone bought something from me a few days ago and refuses to pay because he didn't know that Texas started collecting tax on October 1st
@coinpalice said:
someone bought something from me a few days ago and refuses to pay because he didn't know that Texas started collecting tax on October 1st
I don't think this will be an isolated case. Buyers will have to get in tune with the State Sales Tax assessment, and learn to accept it.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
@coinpalice said:
someone bought something from me a few days ago and refuses to pay because he didn't know that Texas started collecting tax on October 1st
I don't think this will be an isolated case. Buyers will have to get in tune with the State Sales Tax assessment, and learn to accept it.
Yes, it's an adjustment process.
I will say that my higher end coin sales are down in the last month. It is kind of odd only in that we were coming off of traditionally slow summer and I expected a bump.
Sales at the lower end ($50 and under) and sales of philatelic material appear unaffected.
@coinpalice said:
someone bought something from me a few days ago and refuses to pay because he didn't know that Texas started collecting tax on October 1st
I don't think this will be an isolated case. Buyers will have to get in tune with the State Sales Tax assessment, and learn to accept it.
Yes, it's an adjustment process.
I will say that my higher end coin sales are down in the last month. It is kind of odd only in that we were coming off of traditionally slow summer and I expected a bump.
@coinpalice said:
someone bought something from me a few days ago and refuses to pay because he didn't know that Texas started collecting tax on October 1st
I don't think this will be an isolated case. Buyers will have to get in tune with the State Sales Tax assessment, and learn to accept it.
Taxation does not really work that way. The adjustment will be that the consumer will pay a lesser amount for your product. It is similar to the Auction buyer fee which is of course absorbed by the seller.
Should PCGS collect Sales Tax on all BST transactions, applicable to State Laws, and require all sales be conducted through PCGS, to level the playing field and ensure no illegal actions are occuring?
@mustangmanbob said:
Should PCGS collect Sales Tax on all BST transactions, applicable to State Laws, and require all sales be conducted through PCGS, to level the playing field and ensure no illegal actions are occuring?
@coinpalice said:
someone bought something from me a few days ago and refuses to pay because he didn't know that Texas started collecting tax on October 1st
I don't think this will be an isolated case. Buyers will have to get in tune with the State Sales Tax assessment, and learn to accept it.
Yes, it's an adjustment process.
I will say that my higher end coin sales are down in the last month. It is kind of odd only in that we were coming off of traditionally slow summer and I expected a bump.
Good to see that you are finally coming around.
Coming around? I've discussed this from the beginning.
@coinpalice said:
someone bought something from me a few days ago and refuses to pay because he didn't know that Texas started collecting tax on October 1st
I don't think this will be an isolated case. Buyers will have to get in tune with the State Sales Tax assessment, and learn to accept it.
Taxation does not really work that way. The adjustment will be that the consumer will pay a lesser amount for your product. It is similar to the Auction buyer fee which is of course absorbed by the seller.
This is not exactly true in this case. It is partly true for certain things. But it is not wholly true. What the tax has done is level the pricing between your local B&M (who also needs to charge sales tax) and eBay. In the end, tax avoidance might send more people to their B&M. But, if they want a specific coin, whether it is in a Heritage Auction, Local Show or eBay, they will have to pay the tax.
Want proof? People from NY State have regularly placed bids and won Stack's auctions even though they had to pay the tax and someone from Arizona did not. [Prior to Wayfair.] They certainly didn't do that by dropping their bid 8% relative to Arizona bidders. People hate tax, but they also sort of ignore it when there's no other option.
@mustangmanbob said:
Should PCGS collect Sales Tax on all BST transactions, applicable to State Laws, and require all sales be conducted through PCGS, to level the playing field and ensure no illegal actions are occuring?
PCGS should close the BST if they consider this a problem.
Since PCGS does not materially benefit from BST transactions, they are NOT considered a marketplace. Whether they potentially have liability for sales they facilitate by use of their site is an issue for lawyers. I'm fairly certain their lawyers told them they have no liability for BST transactions or they would have closed it. There have been, I'm told, disastrous deals perpetrated through BST.
The way I understand it is, paypal will be charging a fee on the sales tax collected starting nov 1. Because it will be processed as part of the payment processing at invoice time, then the tax money pulled out and sent to states, but the fee will be left for the seller to pay.
Some other things I might add:
Anybody saying they have not noticed an effect, is either not selling that much or not really diving into the bottom line numbers. It has affected me quite a bit, especially as more and more states are being collected for.
With the last round of states added like California , I am getting several more folks all of a sudden questioning the sales tax on the invoice. Most are saying, well "Im a dealer" and shouldn't have to pay it, I tell them to contact ebay and provide them with a resale certificate and documentation they need for their particular state.
Which brings me back around to another thing I have noticed. For many years , I have sold to several folks who claim to be dealers and so forth, countless number of items. Some of these same people who supposed to be dealers, as they buy to resale, but still have not filed or provided documentation to ebay to get tax exemption status, I still see taxes being applied to their invoices as normal. Only a few of them have. It tells me many of the so called dealers don't want to be official and legal just paying the tax. If I were buying off ebay to resale, I would definitely want a tax exemption status as profit is hard enough. Now Like my self, it doesn't matter, because I rarely ever buy off ebay to resell, I get enough stuff coming in the shop weekly to resell as it is.
Which brings me back around to another thing I have noticed. For many years , I have sold to several folks who claim to be dealers and so forth, countless number of items. Some of these same people who supposed to be dealers, as they buy to resale, but still have not filed or provided documentation to ebay to get tax exemption status, I still see taxes being applied to their invoices as normal. Only a few of them have. It tells me many of the so called dealers don't want to be official and legal just paying the tax. If I were buying off ebay to resale, I would definitely want a tax exemption status as profit is hard enough. Now Like my self, it doesn't matter, because I rarely ever buy off ebay to resell, I get enough stuff coming in the shop weekly to resell as it is.
jim
Yes, a lot of fake dealers trying to avoid running a business. Now they are going to have to choose: pay the irrecoverable sales tax or start filing tax forms for your legitimate business.
@amwldcoin said:
I just bought some household stuff from a website and they didn't charge me sales tax!
Small business exemption, if your state has one. An independent operator with sales in the thousands not the hundred thousands will likely be below the limit in states with exemptions for small business.
I wonder what Shopify is doing. Are they counting them as a marketplace? In a sense, these new Wayfair taxes are actually war on eBay and Amazon (and Wayfair). It will be interesting to see how it shakes out. It is sort of unfair to eBay/Amazon/Wayfair that I could open my own website and not collect tax from the same customer who would be forced to pay it on eBay/Amazon.
I'll say again: they should go to a single national VAT that applies to everyone equally no matter what state they are in so that there wouldn't be 50 different forms to file with 50 different states.
@jmlanzaf said:
I wonder what Shopify is doing. Are they counting them as a marketplace? In a sense, these new Wayfair taxes are actually war on eBay and Amazon (and Wayfair). It will be interesting to see how it shakes out. It is sort of unfair to eBay/Amazon/Wayfair that I could open my own website and not collect tax from the same customer who would be forced to pay it on eBay/Amazon.
I'll say again: they should go to a single national VAT that applies to everyone equally no matter what state they are in so that there wouldn't be 50 different forms to file with 50 different states.
Amazon is a good bit different. I don't know what the final tally was, but sales tax was already being charged for a large majority of states based on all their different warehouses and fulfillment centers triggering the prior nexus rules.
I'm not a fan of a national sales tax and especially not a VAT. I've still not heard a compelling argument for why sales tax should not be charged based on the seller's location. I agree that I don't really like exceptions to things either from being really big or really small. Exempting small businesses is an attempted solution to the problem created by the "solution".
@amwldcoin said:
I just bought some household stuff from a website and they didn't charge me sales tax!
Small business exemption, if your state has one. An independent operator with sales in the thousands not the hundred thousands will likely be below the limit in states with exemptions for small business.
I wonder what Shopify is doing. Are they counting them as a marketplace? In a sense, these new Wayfair taxes are actually war on eBay and Amazon (and Wayfair). It will be interesting to see how it shakes out. It is sort of unfair to eBay/Amazon/Wayfair that I could open my own website and not collect tax from the same customer who would be forced to pay it on eBay/Amazon.
I'll say again: they should go to a single national VAT that applies to everyone equally no matter what state they are in so that there wouldn't be 50 different forms to file with 50 different states.
@amwldcoin said:
I just bought some household stuff from a website and they didn't charge me sales tax!
Small business exemption, if your state has one. An independent operator with sales in the thousands not the hundred thousands will likely be below the limit in states with exemptions for small business.
I wonder what Shopify is doing. Are they counting them as a marketplace? In a sense, these new Wayfair taxes are actually war on eBay and Amazon (and Wayfair). It will be interesting to see how it shakes out. It is sort of unfair to eBay/Amazon/Wayfair that I could open my own website and not collect tax from the same customer who would be forced to pay it on eBay/Amazon.
I'll say again: they should go to a single national VAT that applies to everyone equally no matter what state they are in so that there wouldn't be 50 different forms to file with 50 different states.
LOL.
Remember, it is sales by State. They can do $5 million in total sales but if they are only $100k per state, they may qualify for the "small business" exemption.
It's also possible that if you are in one of the latter states rolled out, your Big Little Website just hasn't hit the threshold yet.
Or, I guess it is possible they are simply cheating until caught. LOL
@jmlanzaf said:
I wonder what Shopify is doing. Are they counting them as a marketplace? In a sense, these new Wayfair taxes are actually war on eBay and Amazon (and Wayfair). It will be interesting to see how it shakes out. It is sort of unfair to eBay/Amazon/Wayfair that I could open my own website and not collect tax from the same customer who would be forced to pay it on eBay/Amazon.
I'll say again: they should go to a single national VAT that applies to everyone equally no matter what state they are in so that there wouldn't be 50 different forms to file with 50 different states.
Amazon is a good bit different. I don't know what the final tally was, but sales tax was already being charged for a large majority of states based on all their different warehouses and fulfillment centers triggering the prior nexus rules.
I'm not a fan of a national sales tax and especially not a VAT. I've still not heard a compelling argument for why sales tax should not be charged based on the seller's location. I agree that I don't really like exceptions to things either from being really big or really small. Exempting small businesses is an attempted solution to the problem created by the "solution".
That's true. It is why Amazon sort of stopped fighting the idea of internet sales taxes. Same with Walmart and Target.
But I include Amazon and eBay in the same category because they are marketplaces that small businesses can sell through. The alternative to selling through an existing marketplace is having your own website. So, for small-timers or part-timers, your choice is Amazon/eBay or your own site. Amazon/eBay provide eyeballs more than anything else. And taxing them does potentially create problems for small internet operations. A Walmart or Target doesn't care, they also have nexus in every state and get eyeballs.
Whether intended or not, the Wayfair ruling really impacts small sellers more than big ones in the sense that big ones (Amazon, Target, Walmart) already had nexus in multiple states for their own goods. But small sellers could sell through Amazon and eBay without the tax problem which kind of compensated for the economies of scale that big companies can enjoy [shipping costs, etc.].
While one could argue it just made it "fair for everyone", it actually oddly puts small sellers in the same boat as the giants while essentially exempting the middle tier - companies with a few million in sales spread around the world who are now likely sales tax exempt.
And, really, eBay should be in a separate category from Amazon. eBay isn't really a retailer and Amazon is. That's why I wondered what sites like Shopify are forced to do under the new law.
@coinpalice said:
someone bought something from me a few days ago and refuses to pay because he didn't know that Texas started collecting tax on October 1st
Ignorance of the law is no excuse to stay out of jail.
Comments
I had one in july like that. Forget what state
I don't think this will be an isolated case. Buyers will have to get in tune with the State Sales Tax assessment, and learn to accept it.
Yes, it's an adjustment process.
I will say that my higher end coin sales are down in the last month. It is kind of odd only in that we were coming off of traditionally slow summer and I expected a bump.
Sales at the lower end ($50 and under) and sales of philatelic material appear unaffected.
I expect a bump in the next week, because the e bucks just got released on the 3rd, some people like to spend it right away
Good to see that you are finally coming around.
Taxation does not really work that way. The adjustment will be that the consumer will pay a lesser amount for your product. It is similar to the Auction buyer fee which is of course absorbed by the seller.
Should PCGS collect Sales Tax on all BST transactions, applicable to State Laws, and require all sales be conducted through PCGS, to level the playing field and ensure no illegal actions are occuring?
Only on auto parts.
Coming around? I've discussed this from the beginning.
This is not exactly true in this case. It is partly true for certain things. But it is not wholly true. What the tax has done is level the pricing between your local B&M (who also needs to charge sales tax) and eBay. In the end, tax avoidance might send more people to their B&M. But, if they want a specific coin, whether it is in a Heritage Auction, Local Show or eBay, they will have to pay the tax.
Want proof? People from NY State have regularly placed bids and won Stack's auctions even though they had to pay the tax and someone from Arizona did not. [Prior to Wayfair.] They certainly didn't do that by dropping their bid 8% relative to Arizona bidders. People hate tax, but they also sort of ignore it when there's no other option.
PCGS should close the BST if they consider this a problem.
Since PCGS does not materially benefit from BST transactions, they are NOT considered a marketplace. Whether they potentially have liability for sales they facilitate by use of their site is an issue for lawyers. I'm fairly certain their lawyers told them they have no liability for BST transactions or they would have closed it. There have been, I'm told, disastrous deals perpetrated through BST.
The way I understand it is, paypal will be charging a fee on the sales tax collected starting nov 1. Because it will be processed as part of the payment processing at invoice time, then the tax money pulled out and sent to states, but the fee will be left for the seller to pay.
Some other things I might add:
Anybody saying they have not noticed an effect, is either not selling that much or not really diving into the bottom line numbers. It has affected me quite a bit, especially as more and more states are being collected for.
With the last round of states added like California , I am getting several more folks all of a sudden questioning the sales tax on the invoice. Most are saying, well "Im a dealer" and shouldn't have to pay it, I tell them to contact ebay and provide them with a resale certificate and documentation they need for their particular state.
Which brings me back around to another thing I have noticed. For many years , I have sold to several folks who claim to be dealers and so forth, countless number of items. Some of these same people who supposed to be dealers, as they buy to resale, but still have not filed or provided documentation to ebay to get tax exemption status, I still see taxes being applied to their invoices as normal. Only a few of them have. It tells me many of the so called dealers don't want to be official and legal just paying the tax. If I were buying off ebay to resale, I would definitely want a tax exemption status as profit is hard enough. Now Like my self, it doesn't matter, because I rarely ever buy off ebay to resell, I get enough stuff coming in the shop weekly to resell as it is.
jim
I just bought some household stuff from a website and they didn't charge me sales tax!
Yes, a lot of fake dealers trying to avoid running a business. Now they are going to have to choose: pay the irrecoverable sales tax or start filing tax forms for your legitimate business.
Small business exemption, if your state has one. An independent operator with sales in the thousands not the hundred thousands will likely be below the limit in states with exemptions for small business.
I wonder what Shopify is doing. Are they counting them as a marketplace? In a sense, these new Wayfair taxes are actually war on eBay and Amazon (and Wayfair). It will be interesting to see how it shakes out. It is sort of unfair to eBay/Amazon/Wayfair that I could open my own website and not collect tax from the same customer who would be forced to pay it on eBay/Amazon.
I'll say again: they should go to a single national VAT that applies to everyone equally no matter what state they are in so that there wouldn't be 50 different forms to file with 50 different states.
Amazon is a good bit different. I don't know what the final tally was, but sales tax was already being charged for a large majority of states based on all their different warehouses and fulfillment centers triggering the prior nexus rules.
I'm not a fan of a national sales tax and especially not a VAT. I've still not heard a compelling argument for why sales tax should not be charged based on the seller's location. I agree that I don't really like exceptions to things either from being really big or really small. Exempting small businesses is an attempted solution to the problem created by the "solution".
This didn't strike me as a small business website! I would post a link but!
LOL.
Remember, it is sales by State. They can do $5 million in total sales but if they are only $100k per state, they may qualify for the "small business" exemption.
It's also possible that if you are in one of the latter states rolled out, your Big Little Website just hasn't hit the threshold yet.
Or, I guess it is possible they are simply cheating until caught. LOL
That's true. It is why Amazon sort of stopped fighting the idea of internet sales taxes. Same with Walmart and Target.
But I include Amazon and eBay in the same category because they are marketplaces that small businesses can sell through. The alternative to selling through an existing marketplace is having your own website. So, for small-timers or part-timers, your choice is Amazon/eBay or your own site. Amazon/eBay provide eyeballs more than anything else. And taxing them does potentially create problems for small internet operations. A Walmart or Target doesn't care, they also have nexus in every state and get eyeballs.
Whether intended or not, the Wayfair ruling really impacts small sellers more than big ones in the sense that big ones (Amazon, Target, Walmart) already had nexus in multiple states for their own goods. But small sellers could sell through Amazon and eBay without the tax problem which kind of compensated for the economies of scale that big companies can enjoy [shipping costs, etc.].
While one could argue it just made it "fair for everyone", it actually oddly puts small sellers in the same boat as the giants while essentially exempting the middle tier - companies with a few million in sales spread around the world who are now likely sales tax exempt.
And, really, eBay should be in a separate category from Amazon. eBay isn't really a retailer and Amazon is. That's why I wondered what sites like Shopify are forced to do under the new law.
Ignorance of the law is no excuse to stay out of jail.