FYI: ebay Sales Tax is charged on initial order total (even if ebay bucks used)
U1chicago
Posts: 6,134 ✭✭✭✭✭
For those like me that were wondering about this: eBay collects sales tax from the full price, even if eBay bucks are used.
I just purchased a coin in the Morgan category for around $100, used my eBay bucks, and was charged tax on the entire $100 (even though the price was much lower after applying the eBay bucks).
As far as I can tell, that is the correct* application of the tax since the eBay bucks are like using cash/gift card to pay your total.
(*correct if you are in a state that does charge sales tax for coins)
0
Comments
Next up the states will charge tax on your Ebay bucks earned.
Sales tax should also be charged on the full price even if a coupon is used.
In NY, sales tax also applies to shipping charges.
Sometimes, it's like no one has ever paid sales tax before.
They started collecting tax on the shipping supplies store sellers get every quarter.
As an aside...I get reward bucks from CVS pharmacy. They remove the sales tax on what you use them for!
Not in NY. Depends on the state's law
If people had been paying attention to how their taxes worked all along, things might have turned out different. Unfortunately for a lot of people, it takes something affecting them personally in a way they don't like before they notice what's going on around them.
That is not always correct. It depends on the type of coupon and the state.
https://blog.taxjar.com/sales-tax-discounts-coupons-promotions/
“Sales price reductions arising from the use of coupons or coupon codes are treated in the same way that discounts are. We normally refer to these as “store” or “manufacturer’s” coupons. Store coupons are price reductions offered directly by the retailer and are not reimbursed by the manufacturer or distributor. These reductions in the selling price also reduce the amount subject to sales tax.
Manufacturer coupons or promotions, which reimburse the retailer for the discount provided, are not used to reduce the sales tax base. Because the retailer is compensated and receives payment from a third party the amount subject to sales tax is the full sales price of the product.”
Yes, all of these things are state dependent.
More Ebay confusion...and by intelligent folks that have used the site regularly for many years.
I used to like the Montgomery Ward caramel corn.
Change confuses everyone. And the older they are, the more they mentally reject change.
My Big problem with Coinstartled is that he is giving out false information to YN's or Young Numismatists.
eBay is by far the best source for collector coins, with the best prices and is super safe.
If YN's listen to Coinstarted and avoid eBay, then IMO they would be hurting themselves by listing to the false information peddled here.
I built a profitalbe business because of eBay and any of you can do the same with hard work.
Ebay gives you the platform to make your dreams come true.
You can say the same about eBay.
Sales tax has confused them. And being an older company now, changing it to be correct is not as urgent as it would be for a newer company that is still trying to make it.
The exceptions seem to always take some time to sort through category-wise.
Ok, Rockefeller, lets look at some numbers see just what a bonanza Ebay is for you. As you provided a link to your listings this is all openly available information.
I am seeing 524 current listings. very nice errors by the way.
I see 80 feedback from buyers totaling about $8700 in sales. This goes back 6 months.
I know than only about half of buyers leave feedback so lets double the sales to 160 and $17,400.
That gives you an annual turnover a bit over a half turn per year. Most retailers strive for at least 4 turns per year.
I don't know what your margin is after paying for grading and final value fees and store fees and shipping, but you are good with the errors so I'll make it a generous 50% net. So that would be $8700 or $1450 a month income from Ebay. Not bad but certainly not worth dropping out of medical school for.
I've been an eBay member for twenty years and have bought and sold a ton of coins (and other stuff) over that time. No way I'd agree that today eBay is "by far the best source for collector coins". I now acquire the majority of my newp coins from other places. Nor would I say it's "super safe". It's generally safe if you know what you're doing, but lots of people still get hosed in various ways.
All that said, eBay is still a good venue overall to buy and sell on and I wouldn't discourage anyone from doing so.
A bit of a generalization. Some people get wiser with age and come to realize that change is the only constant. I've embraced change so much, I actually collect it.
Using feedback number for my sales numbers, OMG, LMAO
I stopped leaving feedback years ago. I never leave feedback and do not want any feedback left for me by others. My feedback is 100% positive.
Why you ask? My customers want privacy. I want privicy on my buy and sell prices. Feedback is one-way anyway.
I use eBay as an advertising platform. Do you even know what that means? I have many clients from eBay that become my clients off of eBay.
Your numbers are not even close dude.
I agree with your points.
I haven't been on eBay as long, but I can relate to a lot of what you are saying.
eBay has been one of the bigger sources for my collection, but lately I'm finding less. The sales tax issue isn't helping (particularly when I'm being charged sales tax incorrectly). Another of the big benefits, the eBay Bucks program, has also been reduced in the last few years. It used to be a default of 2% (without any bonus periods) and that was cut to 1%.
As far as safety, buying is quite safe with all of the protections offered by eBay and PayPal. Selling is not as safe as it used to be as buyers have the advantage (even if they aren't being honest).
In general, it is still a solid venue. There are flaws but there are many positives too.
How many sales are completed off eBay on his personal website?
eBay seems to get worse every time ya look at it. I remember the good ole days and how much fun it was. Nothing stays the same and you can bet your life on it.
Yep, WAY back in the day, 15-20 years ago, the majority of coins listings were auctions, and there were tons of them every week. Of course, there were also WAY fewer safeguards for buyers (and sellers, to a lesser degree), so it was kinda like the wild, wild west. Dangerous, but pretty much nonstop action and fun.
Plus Instagram is Insanely good for sales
ctf_error_coins
hashtag errorcoins
hashtag pcgscoin
But you undermine your own argument. If @coinstartled has the right numbers $8000 in 6 months is $16,000 per year. Figure about 30% rate of leaving feedback puts you at only $50k on eBay. So, if errors are wildly successful, MOST of your business must NOT be on eBay.
Ouch
I remember my boss decades ago saying a certain popular erp system was a step backwards. You could not even see all the lines of a simple 6 line journal entry on one page. The world of all that gotten worse as time goes on.
I hate tekkies - their spreadsheets are garbage, they have no concept of the big picture or even can tell you where the bottom line total is.
I haven't - in Utah. Utah still doesn't have a sales tax on coins, currency or precious metals, and yet ebay continues to charge it.
They don't even want to help with paperwork so I can get reimbursed from the State of Utah.
That would be federal. Wait til they......impute.....it based on the largest quarter x 4
as long as gold keeps going up, gold is still in the play, getting taxed or not
The point was not exclusive to coins. People are acting like they've never paid sales tax on anything and don't know how it works.
I bought a gift card with my eBay bucks. No tax ( I know I'll pay tax when I use it. I get a gift card where I would go to without a gift card).
JM, at the Boston Tea party, you would have been urging everyone to head to the pub for a stout, instead.
They charged my sales tax on bullion for delivery to Michigan. I hit the button to buy before realizing that tax was now applied. Stupid eBay, stupid me.
Latin American Collection
One more reason to buy GLD instead of physical gold.
Reward Bucks or any other store discount is a seller discount instead of a 3rd party discount (i.e. a coupon). If a eBay seller has a 'Buy 2 Get 10% off' deal, then the tax will be charged on the reduced price. If you use a 10% off $50 eBay coupon, you will pay tax on the full price.
The determining factor is (usually) what did the seller receive for the item, not what you paid.
LOL. No, but I wouldn't advocate wasting all that perfectly good tea!
Misapplication of the coin rules is one thing. But we've had threads about tax on shipping. We've had threads on tax on eBay bucks or coupons. It just seems like no one has ever heard of this thing called "sales tax". If you've bought anything from Walmart.com or Target.com or likely Amazon.com or BestBuy or any other retailer, you've dealt with most of this before.
It just seems like everyone has their wife, or butler, do all of their non-coin shopping.
The inevitable collection of taxes has been on Ebay's radar for over a decade. Yet when the hammer fell they were ill prepared to execute the mandates.
Perhaps it is intentional and they are dragging their heels in protest.
Coins and bullion are exempt in Michigan. They F’ed up in their execution. I have no problem and welcome sales tax collection on taxable items sold over the internet.
Latin American Collection
No, the feds will first declare it as income and require a 1099 from the payee. Then you will be required to count it as income on your state return.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Rebates are income. Just a matter of time before the IRS makes it official. If I give you money it is income for you. If you then give some of it back it is income for me. While many of us do not agree with this, expect revenue seeking tax agencies to disagree with us.
Doesn't ebay charge sales tax on shipping collected by the seller? Isn't the paypal fee also applied to sales tax collected by ebay for the transaction?
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Again, STATES charge sales tax on shipping. It is mandatory that S&H be taxed in NY, for example. And, yes PayPal applies the fee to all moneys being processed. To them, it doesn't really matter (nor should it, really) what the source of the charge is, they simply process payments.
Exactly. Instagram is where the YN's want to be. Ebay is a dinosaur.
Applying ebay bucks to a purchase is the same as applying an ebay coupon. Full purchase price subject to state sales tax.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
They also charge tax on the shipping expense not just the product.
Yep. GLD is wonderful!
From the prospectus:
Gold held in the Trust's unallocated gold account and any Authorized Participant's
unallocated gold account will not be segregated from the Custodian's assets.
If the Custodian becomes insolvent, its assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant. In addition, in the event of the Custodian's insolvency, there may be a delay and costs incurred in identifying the bullion held in the Trust's allocated gold account.
What does Utah require as proof that tax was collected that shouldn't have been?
How long before the states take a percentage of your gross wages and/or income as sales tax in additon to your regular income tax?
They will just increase the state income tax-like Illinois does (it’s much easier that way).
Why would anyone choose to live in a frozen state that collects income tax when they could live in a sunny climate that does not collect income tax?
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Right. I'm sure if you read the prospectus for AAPL, it mentions that if the company goes bankrupt, your stock won't be worth anything. It's up to you to decide how likely that is.