As far as buyers have no idea how sales tax issue impacting. For me it’s all in the deal so I look at the total picture. I was charged sales tax from a NJ purchase but don’t believe it was numismatic related.
It hasn't affected any purchases so far.
But it irks me that the government continues to extract higher taxes from the citizens to feed their insatiable desire to grow. Time for state government to get smaller, not larger.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
Still buy from eBay but I wait for their eBucks rebate offer to offset the tax. Question to tax experts out there. Why does eBay collect taxes for overseas purchased though? I recently bought a J. Wiener Cathedral medal set and was charged 9.5% sales tax and the seller is from Germany. Thanks for any information regarding foreign transaction tax.
@Knell said:
Still buy from eBay but I wait for their eBucks rebate offer to offset the tax. Question to tax experts out there. Why does eBay collect taxes for overseas purchased though? I recently bought a J. Wiener Cathedral medal set and was charged 9.5% sales tax and the seller is from Germany. Thanks for any information regarding foreign transaction tax.
Depends on your state laws. Nexus is at your address regardless of where the seller is located.
I had some sales to real big dealers in CA and they got charged tax. I was surprised but I think in CA not all want to file the resale as it may just open a bigger can of worms in the long run.
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Sounds good for the buyer.
But the seller still has to pay FVF and PP fees.
Actually, if the seller can raise the total price from $1,470, to $1,501, it's a win-win for both buyer and seller. The seller gets about $30 more, and the buyer saves around $100.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Sounds good for the buyer.
But the seller still has to pay FVF and PP fees.
Actually, if the seller can raise the total price from $1,470, to $1,501, it's a win-win for both buyer and seller. The seller gets about $30 more, and the buyer saves around $100.
Steve
Who wouldn’t be happy making more money or saving money?
There is probably already a “calculator” out there to figure this all out and it is already being done.
The problem is finding a seller and buyer that agree to do this “match-up.” There is the term, conspiracy, that comes to mind.
Fairly sure CA or any States’ revenue department would love to audit the buyers books, in court.
Edit: If the value of them item is at/above the threshold then that’s fine but adjusting values to circumvent...... is swimming in dangerous territory of tax sharks. IMO
No they cant. Ebay is not doing a good job of combing items so even if they added 2nd cheap coin from the seller they each get taxed.
I bought 4 coins from one guy, 2 over 1500, 2 below, all one transaction. They treated each coin as an individual sale.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
@blu62vette said:
No they cant. Ebay is not doing a good job of combing items so even if they added 2nd cheap coin from the seller they each get taxed.
I bought 4 coins from one guy, 2 over 1500, 2 below, all one transaction. They treated each coin as an individual sale.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Well, if that were to happen to me, I guarantee that I will raise Holy Hell on ebay! Being charged sales tax, in a situation where my state government has determined that I will not be charged tax, is illegal!
@blu62vette said:
No they cant. Ebay is not doing a good job of combing items so even if they added 2nd cheap coin from the seller they each get taxed.
I bought 4 coins from one guy, 2 over 1500, 2 below, all one transaction. They treated each coin as an individual sale.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Well, if that were to happen to me, I guarantee that I will raise Holy Hell on ebay! Being charged sales tax, in a situation where my state government has determined that I will not be charged tax, is illegal!
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Reminds me of Amazon with free shipping at say $35. Item is $34.99 and they want to tack on $6 shipping.
Of course I can save the six bucks by sending the shysters $150 for Prime and that would also make my organic grapes a bit cheaper at Whole Foods.
eBay lets me send a buyer an invoice which combines all their purchases with one total due. Looks like this:
Item #1 - $15.00
Item #2 - $57.00
Subtotal - $72.00
Shipping - $0.00
Sales tax (eBay collected) - $4.77
Total - $76.77
Total includes eBay collected tax. We remit this tax to the tax authority in accordance with applicable law. We'll automatically deduct this amount from you via PayPal.
This won't work if the buyer pays for each item individually before I have a chance to send a combined invoice, however. Maybe buyers who are concerned about this should request an invoice from the seller before paying.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Sounds good for the buyer.
But the seller still has to pay FVF and PP fees.
Actually, if the seller can raise the total price from $1,470, to $1,501, it's a win-win for both buyer and seller. The seller gets about $30 more, and the buyer saves around $100.
Steve
The buyer and seller would probably have to agree to cancel the sale and relist the coin/item at the new higher price. Is it possible to add smoe sort of handling charge to get the price over $1500?
If you don't want to deal with the consequences then don't bid would be my advice.
@MasonG said:
eBay lets me send a buyer an invoice which combines all their purchases with one total due. Looks like this:
Item #1 - $15.00
Item #2 - $57.00
Subtotal - $72.00
Shipping - $0.00
Sales tax (eBay collected) - $4.77
Total - $76.77
Total includes eBay collected tax. We remit this tax to the tax authority in accordance with applicable law. We'll automatically deduct this amount from you via PayPal.
This won't work if the buyer pays for each item individually before I have a chance to send a combined invoice, however. Maybe buyers who are concerned about this should request an invoice from the seller before paying.
Good information to know.
And if a buyer pays by Paypal and then asks for a refund so that that he can combine the purchase to meet the tax free minimum, the seller gets whacked on the initial non refundable paypal fee.
Remember it is not eBay's (or Amazon, Wayfair, etc) fault they are collecting tax - they are complying with your State's tax laws. If you don't like that your State charges sales tax on the purchase bullion and coins - get your politicians to change the law.
As for ways to avoid the tax - those will become fewer and fewer as time goes on. Legislators in States with a retail sales tax believe they have opened a box from our host and it contained a 2019 S Enhanced Reverse Proof PR70 with the 00001 COA. Tax collections are rolling in as companies voluntarily start collecting tax. Tax Departments will begin looking for those that are not voluntarily reporting and begin focusing on them. Then they will start looking at tangential targets. Our host - expect them to begin charging tax on their services. Once registered, they will have to take a hard look at the BST forum they host on their site. Some State will try and claim they are hosting a marketplace and have responsibility to tax accordingly...
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Reminds me of Amazon with free shipping at say $35. Item is $34.99 and they want to tack on $6 shipping.
Of course I can save the six bucks by sending the shysters $150 for Prime and that would also make my organic grapes a bit cheaper at Whole Foods.
What the hell has happened?
Politicians being politicians... always trying to find new ways to pull your money out of your pockets.....
@Coinstartled said:
And if a buyer pays by Paypal and then asks for a refund so that that he can combine the purchase to meet the tax free minimum, the seller gets whacked on the initial non refundable paypal fee.
I would ask the buyer to cover any of my non-refundable costs before agreeing to refund individual payments in order to combine the order for the buyer's benefit.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Sounds good for the buyer.
But the seller still has to pay FVF and PP fees.
Actually, if the seller can raise the total price from $1,470, to $1,501, it's a win-win for both buyer and seller. The seller gets about $30 more, and the buyer saves around $100.
Steve
The buyer and seller would probably have to agree to cancel the sale and relist the coin/item at the new higher price. Is it possible to add smoe sort of handling charge to get the price over $1500?
If you don't want to deal with the consequences then don't bid would be my advice.
I'm not going to cancel a sale and eat 3% in PayPal fees so that you can avoid tax you owe. Figure it out before you buy. You cancel the sale, you are blocked.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Sounds good for the buyer.
But the seller still has to pay FVF and PP fees.
Actually, if the seller can raise the total price from $1,470, to $1,501, it's a win-win for both buyer and seller. The seller gets about $30 more, and the buyer saves around $100.
Steve
The buyer and seller would probably have to agree to cancel the sale and relist the coin/item at the new higher price. Is it possible to add smoe sort of handling charge to get the price over $1500?
If you don't want to deal with the consequences then don't bid would be my advice.
I'm not going to cancel a sale and eat 3% in PayPal fees so that you can avoid tax you owe. Figure it out before you buy. You cancel the sale, you are blocked.
But I thought that the new Paypal fee confiscation on refunds was little more than a minor consideration.
I think we are at 32 months now. I'll add a day for leap year.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Sounds good for the buyer.
But the seller still has to pay FVF and PP fees.
Actually, if the seller can raise the total price from $1,470, to $1,501, it's a win-win for both buyer and seller. The seller gets about $30 more, and the buyer saves around $100.
Steve
The buyer and seller would probably have to agree to cancel the sale and relist the coin/item at the new higher price. Is it possible to add smoe sort of handling charge to get the price over $1500?
If you don't want to deal with the consequences then don't bid would be my advice.
I'm not going to cancel a sale and eat 3% in PayPal fees so that you can avoid tax you owe. Figure it out before you buy. You cancel the sale, you are blocked.
But I thought that the new Paypal fee confiscation on refunds was little more than a minor consideration.
I think we are at 32 months now. I'll add a day for leap year.
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Sounds good for the buyer.
But the seller still has to pay FVF and PP fees.
Actually, if the seller can raise the total price from $1,470, to $1,501, it's a win-win for both buyer and seller. The seller gets about $30 more, and the buyer saves around $100.
Steve
The buyer and seller would probably have to agree to cancel the sale and relist the coin/item at the new higher price. Is it possible to add smoe sort of handling charge to get the price over $1500?
If you don't want to deal with the consequences then don't bid would be my advice.
I'm not going to cancel a sale and eat 3% in PayPal fees so that you can avoid tax you owe. Figure it out before you buy. You cancel the sale, you are blocked.
But I thought that the new Paypal fee confiscation on refunds was little more than a minor consideration.
I think we are at 32 months now. I'll add a day for leap year.
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
I have blocked a guy for asking a question. I don't mind questions but i realized that he was seeking near perfection in a coin and i figured it would involve a return, so i have no problem with the occasional action.
But the tax issue combined with new PP policy makes the Ebay experience more than a bit less streamlined. That is never good for business.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
ap year.
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
I have blocked a guy for asking a question. I don't mind questions but i realized that he was seeking near perfection in a coin and i figured it would involve a return, so i have no problem with the occasional action.
But the tax issue combined with new PP policy makes the Ebay experience more than a bit less streamlined. That is never good for business.
It's a challenge for the internet, not just eBay. Amazon retailing is also going to face headwinds. In that sense, the States got what they wanted: a more level playing field for B&M's. Not to mention a windfall in revenue.
Ebay is behind Amazon in staying ahead of the curve of running a successful business. When a business charges taxes that are not due in your jurisdiction they are breaking the law. I have had transactions cancelled where a buyer cancelled a sale near Reno, NV, he should not have been taxed. The coin was $10 gold where the precious metals content was well over a half of the sale; their law pertains to collectibles without significant precious metal correlation to sale.
I can't pull the trigger as often as I used to. My spending habits have been greatly curtailed because of the new tax scheme that the state has foisted on us. Some things in life, as they say, are certain...death and taxes. But I'll fight them to the end!
As a buyer, I have not noticed that a desirable coin that I bid on will not also elicit a nuclear bid at the last few seconds that might also be subject to the winning bidder's tax jurisdiction. So, passion trumps sales taxes.
But as a seller contemplating selling some of my coins on eBay, I have to give serious thought to dealing with 50 tax entities throughout the US. The cost of the tax is on the account of the buyer, but the administrative cost to pay the tax is on me. BIG PIA if you are a small seller.
Will I need a tax license from all 50 states to sell a few coins a year?
@Cameonut said:
It hasn't affected any purchases so far.
But it irks me that the government continues to extract higher taxes from the citizens to feed their insatiable desire to grow. Time for state government to get smaller, not larger.
It's only some state governments so there is a choice.
@OldIndianNutKase said:
As a buyer, I have not noticed that a desirable coin that I bid on will not also elicit a nuclear bid at the last few seconds that might also be subject to the winning bidder's tax jurisdiction. So, passion trumps sales taxes.
But as a seller contemplating selling some of my coins on eBay, I have to give serious thought to dealing with 50 tax entities throughout the US. The cost of the tax is on the account of the buyer, but the administrative cost to pay the tax is on me. BIG PIA if you are a small seller.
Will I need a tax license from all 50 states to sell a few coins a year?
OINK
An interesting approach would be to only sell when you don't have to pay tax. For example, in California you get taxed under $1,500 but not over. Some dealers will refuse to sell to California residents under $1,500 which makes things simple for the buyer and the seller.
@OldIndianNutKase said:
As a buyer, I have not noticed that a desirable coin that I bid on will not also elicit a nuclear bid at the last few seconds that might also be subject to the winning bidder's tax jurisdiction. So, passion trumps sales taxes.
But as a seller contemplating selling some of my coins on eBay, I have to give serious thought to dealing with 50 tax entities throughout the US. The cost of the tax is on the account of the buyer, but the administrative cost to pay the tax is on me. BIG PIA if you are a small seller.
Will I need a tax license from all 50 states to sell a few coins a year?
OINK
It varies by state but there are minimum thresholds that must be hit before requiring collecting and submitting taxes, for example perhaps $100,000. So unless you are selling seriously high end coins in states without number of transaction thresholds as well, you will be fine selling a few coins a year.
@OldIndianNutKase said:
As a buyer, I have not noticed that a desirable coin that I bid on will not also elicit a nuclear bid at the last few seconds that might also be subject to the winning bidder's tax jurisdiction. So, passion trumps sales taxes.
But as a seller contemplating selling some of my coins on eBay, I have to give serious thought to dealing with 50 tax entities throughout the US. The cost of the tax is on the account of the buyer, but the administrative cost to pay the tax is on me. BIG PIA if you are a small seller.
Will I need a tax license from all 50 states to sell a few coins a year?
OINK
If you are selling on ebay, you don't need to do anything. They collect and remit. PERIOD.
@Cameonut said:
It hasn't affected any purchases so far.
But it irks me that the government continues to extract higher taxes from the citizens to feed their insatiable desire to grow. Time for state government to get smaller, not larger.
It's only some state governments so there is a choice.
It's currently 70% of states and growing. It isn't just "some".
@OldIndianNutKase said:
As a buyer, I have not noticed that a desirable coin that I bid on will not also elicit a nuclear bid at the last few seconds that might also be subject to the winning bidder's tax jurisdiction. So, passion trumps sales taxes.
But as a seller contemplating selling some of my coins on eBay, I have to give serious thought to dealing with 50 tax entities throughout the US. The cost of the tax is on the account of the buyer, but the administrative cost to pay the tax is on me. BIG PIA if you are a small seller.
Will I need a tax license from all 50 states to sell a few coins a year?
OINK
It varies by state but there are minimum thresholds that must be hit before requiring collecting and submitting taxes, for example perhaps $100,000. So unless you are selling seriously high end coins in states without number of transaction thresholds as well, you will be fine selling a few coins a year.
This is only true if NOT selling on ebay or Amazon. If you sell even $1 on ebay to a state with sales tax,it wil be collected and paid.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
ap year.
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
I have blocked a guy for asking a question. I don't mind questions but i realized that he was seeking near perfection in a coin and i figured it would involve a return, so i have no problem with the occasional action.
But the tax issue combined with new PP policy makes the Ebay experience more than a bit less streamlined. That is never good for business.
It's a challenge for the internet, not just eBay. Amazon retailing is also going to face headwinds. In that sense, the States got what they wanted: a more level playing field for B&M's. Not to mention a windfall in revenue.
They don't care about the level playing field. You are correct about the windfall.
No change here...but then, I was that weird guy who actually paid the Oklahoma state use taxes that were due on out of state sales even before Ebay/Amazon starting collecting them.
Just because I'm old doesn't mean I don't love to look at a pretty bust.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
ap year.
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
I have blocked a guy for asking a question. I don't mind questions but i realized that he was seeking near perfection in a coin and i figured it would involve a return, so i have no problem with the occasional action.
But the tax issue combined with new PP policy makes the Ebay experience more than a bit less streamlined. That is never good for business.
It's a challenge for the internet, not just eBay. Amazon retailing is also going to face headwinds. In that sense, the States got what they wanted: a more level playing field for B&M's. Not to mention a windfall in revenue.
They don't care about the level playing field. You are correct about the windfall.
They DO care about the level playing field because it was shuttering businesses in their states. The financial hit was greater than just the lost sales tax.
@OldIndianNutKase said:
As a buyer, I have not noticed that a desirable coin that I bid on will not also elicit a nuclear bid at the last few seconds that might also be subject to the winning bidder's tax jurisdiction. So, passion trumps sales taxes.
But as a seller contemplating selling some of my coins on eBay, I have to give serious thought to dealing with 50 tax entities throughout the US. The cost of the tax is on the account of the buyer, but the administrative cost to pay the tax is on me. BIG PIA if you are a small seller.
Will I need a tax license from all 50 states to sell a few coins a year?
OINK
It varies by state but there are minimum thresholds that must be hit before requiring collecting and submitting taxes, for example perhaps $100,000. So unless you are selling seriously high end coins in states without number of transaction thresholds as well, you will be fine selling a few coins a year.
This is only true if NOT selling on ebay or Amazon. If you sell even $1 on ebay to a state with sales tax,it wil be collected and paid.
No, you do not need to collect and submit taxes if selling on eBay. eBay will do that for you. My post was in reply to a question about getting a tax license from all 50 states.
@OldIndianNutKase said:
As a buyer, I have not noticed that a desirable coin that I bid on will not also elicit a nuclear bid at the last few seconds that might also be subject to the winning bidder's tax jurisdiction. So, passion trumps sales taxes.
But as a seller contemplating selling some of my coins on eBay, I have to give serious thought to dealing with 50 tax entities throughout the US. The cost of the tax is on the account of the buyer, but the administrative cost to pay the tax is on me. BIG PIA if you are a small seller.
Will I need a tax license from all 50 states to sell a few coins a year?
OINK
It varies by state but there are minimum thresholds that must be hit before requiring collecting and submitting taxes, for example perhaps $100,000. So unless you are selling seriously high end coins in states without number of transaction thresholds as well, you will be fine selling a few coins a year.
This is only true if NOT selling on ebay or Amazon. If you sell even $1 on ebay to a state with sales tax,it wil be collected and paid.
No, you do not need to collect and submit taxes if selling on eBay. eBay will do that for you. My post was in reply to a question about getting a tax license from all 50 states.
I know it was confusing the way he asked the question, but he was asking about selling his coins on eBay and whether he then needed to have registration in all 50 states.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
ap year.
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
I have blocked a guy for asking a question. I don't mind questions but i realized that he was seeking near perfection in a coin and i figured it would involve a return, so i have no problem with the occasional action.
But the tax issue combined with new PP policy makes the Ebay experience more than a bit less streamlined. That is never good for business.
It's a challenge for the internet, not just eBay. Amazon retailing is also going to face headwinds. In that sense, the States got what they wanted: a more level playing field for B&M's. Not to mention a windfall in revenue.
They don't care about the level playing field. You are correct about the windfall.
They DO care about the level playing field because it was shuttering businesses in their states. The financial hit was greater than just the lost sales tax.
Same guys that reward Amazon with tax handouts after they wiped out hundreds of thousands of Brick and Mortars. No way.
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Todd is a dealer.
And the eBay process requires that you upload and they verify a valid state sellers permit.
My Ebay Store
Just noting it for those who think it could be a workaround.
No sales tax on coins and bullion in Texas.
Have not seen any sales tax on my sales.
As far as buyers have no idea how sales tax issue impacting. For me it’s all in the deal so I look at the total picture. I was charged sales tax from a NJ purchase but don’t believe it was numismatic related.
Online sales have been strong last couple months.
It hasn't affected any purchases so far.
But it irks me that the government continues to extract higher taxes from the citizens to feed their insatiable desire to grow. Time for state government to get smaller, not larger.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
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Thanks for the clarification...
I had a buyer from Texas get charged the sales tax on a $1600 coin that was sold from ebay.
Still buy from eBay but I wait for their eBucks rebate offer to offset the tax. Question to tax experts out there. Why does eBay collect taxes for overseas purchased though? I recently bought a J. Wiener Cathedral medal set and was charged 9.5% sales tax and the seller is from Germany. Thanks for any information regarding foreign transaction tax.
Next taxed non-eBay purchase:
Kimber, 357, 2 inch barrel, stainless with wood grips. Oh la la. Artful. “Hammer” price.
Depends on your state laws. Nexus is at your address regardless of where the seller is located.
Since the title was “pulled the trigger” double action thread.
I had some sales to real big dealers in CA and they got charged tax. I was surprised but I think in CA not all want to file the resale as it may just open a bigger can of worms in the long run.
No effect as sales tax does not apply to coins or bullion in Pennsylvania.
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If the buyer is in Texas, he/she cannot be charged the sales tax, since all numismatic purchases are tax-exempt!
Steve
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
Sounds good for the buyer.
But the seller still has to pay FVF and PP fees.
Actually, if the seller can raise the total price from $1,470, to $1,501, it's a win-win for both buyer and seller. The seller gets about $30 more, and the buyer saves around $100.
Steve
Who wouldn’t be happy making more money or saving money?
There is probably already a “calculator” out there to figure this all out and it is already being done.
The problem is finding a seller and buyer that agree to do this “match-up.” There is the term, conspiracy, that comes to mind.
Fairly sure CA or any States’ revenue department would love to audit the buyers books, in court.
Edit: If the value of them item is at/above the threshold then that’s fine but adjusting values to circumvent...... is swimming in dangerous territory of tax sharks. IMO
No they cant. Ebay is not doing a good job of combing items so even if they added 2nd cheap coin from the seller they each get taxed.
I bought 4 coins from one guy, 2 over 1500, 2 below, all one transaction. They treated each coin as an individual sale.
Well, if that were to happen to me, I guarantee that I will raise Holy Hell on ebay! Being charged sales tax, in a situation where my state government has determined that I will not be charged tax, is illegal!
Steve
I have talked to them about it but there are so many little tax laws in every state it will take a long time to get them all right.
Reminds me of Amazon with free shipping at say $35. Item is $34.99 and they want to tack on $6 shipping.
Of course I can save the six bucks by sending the shysters $150 for Prime and that would also make my organic grapes a bit cheaper at Whole Foods.
What the hell has happened?
eBay lets me send a buyer an invoice which combines all their purchases with one total due. Looks like this:
Item #1 - $15.00
Item #2 - $57.00
Subtotal - $72.00
Shipping - $0.00
Sales tax (eBay collected) - $4.77
Total - $76.77
Total includes eBay collected tax. We remit this tax to the tax authority in accordance with applicable law. We'll automatically deduct this amount from you via PayPal.
This won't work if the buyer pays for each item individually before I have a chance to send a combined invoice, however. Maybe buyers who are concerned about this should request an invoice from the seller before paying.
The buyer and seller would probably have to agree to cancel the sale and relist the coin/item at the new higher price. Is it possible to add smoe sort of handling charge to get the price over $1500?
If you don't want to deal with the consequences then don't bid would be my advice.
Good information to know.
And if a buyer pays by Paypal and then asks for a refund so that that he can combine the purchase to meet the tax free minimum, the seller gets whacked on the initial non refundable paypal fee.
Remember it is not eBay's (or Amazon, Wayfair, etc) fault they are collecting tax - they are complying with your State's tax laws. If you don't like that your State charges sales tax on the purchase bullion and coins - get your politicians to change the law.
As for ways to avoid the tax - those will become fewer and fewer as time goes on. Legislators in States with a retail sales tax believe they have opened a box from our host and it contained a 2019 S Enhanced Reverse Proof PR70 with the 00001 COA. Tax collections are rolling in as companies voluntarily start collecting tax. Tax Departments will begin looking for those that are not voluntarily reporting and begin focusing on them. Then they will start looking at tangential targets. Our host - expect them to begin charging tax on their services. Once registered, they will have to take a hard look at the BST forum they host on their site. Some State will try and claim they are hosting a marketplace and have responsibility to tax accordingly...
Politicians being politicians... always trying to find new ways to pull your money out of your pockets.....
I would ask the buyer to cover any of my non-refundable costs before agreeing to refund individual payments in order to combine the order for the buyer's benefit.
Yes
I figured it would affect my buying but when I bought a coin last month, I then seen that Texas is not taxed on coins.
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I'm not going to cancel a sale and eat 3% in PayPal fees so that you can avoid tax you owe. Figure it out before you buy. You cancel the sale, you are blocked.
Not tax here.
But I thought that the new Paypal fee confiscation on refunds was little more than a minor consideration.
I think we are at 32 months now. I'll add a day for leap year.
Blocking a buyer is a rather trivial exercise, is it not?
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
I have blocked a guy for asking a question. I don't mind questions but i realized that he was seeking near perfection in a coin and i figured it would involve a return, so i have no problem with the occasional action.
But the tax issue combined with new PP policy makes the Ebay experience more than a bit less streamlined. That is never good for business.
ap year.
It's a challenge for the internet, not just eBay. Amazon retailing is also going to face headwinds. In that sense, the States got what they wanted: a more level playing field for B&M's. Not to mention a windfall in revenue.
Ebay is behind Amazon in staying ahead of the curve of running a successful business. When a business charges taxes that are not due in your jurisdiction they are breaking the law. I have had transactions cancelled where a buyer cancelled a sale near Reno, NV, he should not have been taxed. The coin was $10 gold where the precious metals content was well over a half of the sale; their law pertains to collectibles without significant precious metal correlation to sale.
I can't pull the trigger as often as I used to. My spending habits have been greatly curtailed because of the new tax scheme that the state has foisted on us. Some things in life, as they say, are certain...death and taxes. But I'll fight them to the end!
As a buyer, I have not noticed that a desirable coin that I bid on will not also elicit a nuclear bid at the last few seconds that might also be subject to the winning bidder's tax jurisdiction. So, passion trumps sales taxes.
But as a seller contemplating selling some of my coins on eBay, I have to give serious thought to dealing with 50 tax entities throughout the US. The cost of the tax is on the account of the buyer, but the administrative cost to pay the tax is on me. BIG PIA if you are a small seller.
Will I need a tax license from all 50 states to sell a few coins a year?
OINK
It's only some state governments so there is a choice.
An interesting approach would be to only sell when you don't have to pay tax. For example, in California you get taxed under $1,500 but not over. Some dealers will refuse to sell to California residents under $1,500 which makes things simple for the buyer and the seller.
It varies by state but there are minimum thresholds that must be hit before requiring collecting and submitting taxes, for example perhaps $100,000. So unless you are selling seriously high end coins in states without number of transaction thresholds as well, you will be fine selling a few coins a year.
If you are selling on ebay, you don't need to do anything. They collect and remit. PERIOD.
It's currently 70% of states and growing. It isn't just "some".
This is only true if NOT selling on ebay or Amazon. If you sell even $1 on ebay to a state with sales tax,it wil be collected and paid.
They don't care about the level playing field. You are correct about the windfall.
No change here...but then, I was that weird guy who actually paid the Oklahoma state use taxes that were due on out of state sales even before Ebay/Amazon starting collecting them.
They DO care about the level playing field because it was shuttering businesses in their states. The financial hit was greater than just the lost sales tax.
No, you do not need to collect and submit taxes if selling on eBay. eBay will do that for you. My post was in reply to a question about getting a tax license from all 50 states.
I know it was confusing the way he asked the question, but he was asking about selling his coins on eBay and whether he then needed to have registration in all 50 states.
Same guys that reward Amazon with tax handouts after they wiped out hundreds of thousands of Brick and Mortars. No way.