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MYSLABS- can't figure out the real process. Any help would be appreciated

Mickey71Mickey71 Posts: 4,234 ✭✭✭✭
in Trading Cards & Memorabilia Forum

I'd like to hear from people who are using the site as sellers please. I don't care about the lack of cards or traffic. When the cards are listed and sold the transaction gets done through PP. At the end of the year the seller would get a 1099 from PP. Is there a potential problem with sales tax or it's just not part of the process for MYSLABS sales? I have an account; but have not listed anything yet. If I sell a $500 card to a guy in Austin, TX do I need to know his sales tax? I'm in a different state.

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    Mickey71Mickey71 Posts: 4,234 ✭✭✭✭

    Anyone with any info???

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    jay0791jay0791 Posts: 3,513 ✭✭✭✭

    I have nether paid or retained sales tax on myslabs as buyer or seller.

    Collecting PSA... FB,BK,HK,and BB HOF RC sets
    1948-76 Topps FB Sets
    FB & BB HOF Player sets
    1948-1993 NY Yankee Team Sets
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    thedutymon11thedutymon11 Posts: 633 ✭✭✭✭

    @jay0791 said:
    I have nether paid or retained sales tax on myslabs as buyer or seller.

    Same here, And Therein lies the problem, this can and will come up to Bite Us come Tax time 2023! Remember the Stimulus Bill signed this year, ALL (or MOST) Internet Sales over $600 will get a 1099, E-Bay, Etsy, Myslabs, ect. ect. ect.!

    YeeHaw!

    Neil

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    TabeTabe Posts: 5,927 ✭✭✭✭✭

    @Mickey71 said:
    If I sell a $500 card to a guy in Austin, TX do I need to know his sales tax? I'm in a different state.

    No. It's not your job to send sales tax revenue to Texas. It's the buyer's responsibility to pay it.

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    thedutymon11thedutymon11 Posts: 633 ✭✭✭✭

    @Tabe said:

    @Mickey71 said:
    If I sell a $500 card to a guy in Austin, TX do I need to know his sales tax? I'm in a different state.

    No. It's not your job to send sales tax revenue to Texas. It's the buyer's responsibility to pay it.

    And in THEORY, I Agree with you, until the IRS says different!

    YeeHaw!

    Neil

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    jay0791jay0791 Posts: 3,513 ✭✭✭✭

    The IRS has nothing to do with sales tax. That is a state thing.
    I am a sole proprietor and collect sales tax as requires for services. I am issued a TF # through NYS tax and finance and pay via that number. I am responsible for keeping track of each county (they have diff tax rates) and turn in my numbers with a payment.

    Collecting PSA... FB,BK,HK,and BB HOF RC sets
    1948-76 Topps FB Sets
    FB & BB HOF Player sets
    1948-1993 NY Yankee Team Sets
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    Mickey71Mickey71 Posts: 4,234 ✭✭✭✭

    @Tabe said:

    @Mickey71 said:
    If I sell a $500 card to a guy in Austin, TX do I need to know his sales tax? I'm in a different state.

    No. It's not your job to send sales tax revenue to Texas. It's the buyer's responsibility to pay it.

    Then how do the states get their money on these type of transactions ? On EBAY it is collected from the buyers on the sellers behalf and sent to the states. On MYSLABS it appears that nothing is done by the site or the sellers or buyers. What is right/wrong and what is the correct way? It just seems like a TON of gray area.

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    TabeTabe Posts: 5,927 ✭✭✭✭✭

    @Mickey71 said:

    @Tabe said:

    @Mickey71 said:
    If I sell a $500 card to a guy in Austin, TX do I need to know his sales tax? I'm in a different state.

    No. It's not your job to send sales tax revenue to Texas. It's the buyer's responsibility to pay it.

    Then how do the states get their money on these type of transactions ? On EBAY it is collected from the buyers on the sellers behalf and sent to the states. On MYSLABS it appears that nothing is done by the site or the sellers or buyers. What is right/wrong and what is the correct way? It just seems like a TON of gray area.

    Buyers are supposed to contact the state and pay it that way. For Texas:

    https://comptroller.texas.gov/taxes/sales/

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    daltexdaltex Posts: 3,486 ✭✭✭✭✭

    @Tabe said:

    @Mickey71 said:
    If I sell a $500 card to a guy in Austin, TX do I need to know his sales tax? I'm in a different state.

    No. It's not your job to send sales tax revenue to Texas. It's the buyer's responsibility to pay it.

    This may be true in some states, and likely many more if you don't exceed a certain threshold of taxable sales in that state. Please see the Supreme Court decision in South Dakota v. Wayfair.

    https://taxfoundation.org/what-does-the-wayfair-decision-really-mean-for-states-businesses-and-consumers/

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    TabeTabe Posts: 5,927 ✭✭✭✭✭

    @daltex said:

    @Tabe said:

    @Mickey71 said:
    If I sell a $500 card to a guy in Austin, TX do I need to know his sales tax? I'm in a different state.

    No. It's not your job to send sales tax revenue to Texas. It's the buyer's responsibility to pay it.

    This may be true in some states, and likely many more if you don't exceed a certain threshold of taxable sales in that state. Please see the Supreme Court decision in South Dakota v. Wayfair.

    https://taxfoundation.org/what-does-the-wayfair-decision-really-mean-for-states-businesses-and-consumers/

    In the case of Texas, if the business or entity does less than $500k of business in Texas in a given year, they don't have to collect sales/use tax. The responsibility lies with the buyer.

    https://comptroller.texas.gov/taxes/sales/remote-sellers.php

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