Ebay seller sales tax question.

bigjpst

Just out of curiosity,how may of the ebay sellers here who hold a tax exempt/sellers permit in their given state, charge sales tax on your sales on ebay? I know it may be a touchy subject, but since there is a record of the sale,(paypal,and ebay) I would assume if it is an in state sale, you the seller claim the tax. Do you pass that on to the buyer? I ask because I have a sellers permit, and have been charging tax for in state sales, and I have had a couple complaints from buyers.

coinman23885

I think it should be announced ahead of time. I purchased a coin without realizing that sales tax would be levied against me. Needless to say, I'm not happy about it.

segoja

So are you disappointed when you go to the grocery store and they charge you sales tax?

It's the law, so I'm not sure why you are disappointed that sellers follow the law.

coindeuce

In N.Y. , a person (dealer) with a Certificate of Authority can exercise the option of taking exemption from paying sales tax to a seller located within N.Y., but only if a signed Resale Form is supplied to the seller. A N.Y. seller with a Certificate of Authority is obliged to collect sales tax from a N.Y. buyer unless buyer provides the aforementioned Resale Form.

derryb

sellers that charge a state sales tax need to realize that some states, such as Florida, require no sales tax on coins. I believe most other states hold the buyers of out of state items responsible for turning over the taxes due to the home state. To be fair to buyers, a seller should only charge sales tax if item is shipped in state and that state requires sales tax. If shipped out of state, state taxes become the responsibility of the buyer. A state sales license only authorizes a seller to collect taxes on behalf of the state that issued it.

Sellers that charge state sales taxes should also realize that if they are not passing the taxes on to the respective state they are playing with a very hot fire. The internet leaves a paper trail that is easily followed by any government agency desiring to do so.

I suspect many ebay sellers that collect a sales tax on items shipped out of state just add the money collected to their profit. I doubt they hold state tax certificates for other states. A buyer that questions an out of state seller collecting taxes on behalf of the state should talk to that states taxing office.

Note that major on line retailers only collect state sales taxes on items shipped within the state. Just a matter of time before state governments go after this major loss of revenue. I suspect they will do so by requiring out of state sellers to collect and forward any sales taxes due to the state. Knowing how the national boys love to control things, I'm surprised they haven't put a federal sales tax on internet sales on behalf of the individual states.

LanceNewmanOCC

.
less than 1% of my sales are from my state.

how would i handle a big sale from my state where i should charge sales tax. depends on profit margin and how much the tax would be.

i may only charge them part of it and pay the rest myself if i think it may sour the deal

if i recognize the state i usually try to ask if they have exempt status, which out of the times i have, none have had a TID/EIN
.

bigjpst

I only charge sales tax on sales in my state of business. Ebay has a sales tax table that you can check that will add sales tax automatically to the states that you are required to collect. The sales tax information goes into the section on the listing page marked Shipping and Payments. On my listings, in that section, it clearly states I charge sales tax on California purchases. I refunded the most recent complaint the tax charged because it was a very small amount, and I had the room on my margin, but my margin is thin enough so that once ebay, and paypal get their vig, another 9% most of the time, would make selling pointless.
It seems I sold a lot less in state before I started charging tax, now it seems like every other sale. I updated all my current listing to state the tax issue in the listing, but I was just curious how others handled it. Or if they got many complaints.

derryb

nothing wrong with collecting taxes on behalf of the state, especially when they require you to do so. What is wrong is for an ebay seller to collect taxes on behalf of a state and pocket them.

In-state buyers have no valid complaint when the seller makes the taxes clear in the listing.

AUandAG

You are not required to collect the tax from the buyer. Your ARE required to remit the appropriate
tax to the state. You can eat it or collect it. But, you do have to pay the state their money.

If I see a sales tax added to an auction I will discount my bid by that amount (same with shipping).

I generally do not even look at my in state sellers due to the tax/shipping. I just get outbid all
the time.

bob

abitofthisabitofthat

I collect sales tax from buyers in my home state on NJ. And, of course, remit it to the state. It is actually pretty easy to do. Ebay's file transfer listing templates have a field to check for sales tax, and you can specify which state and how much. All of my listings clearly state that sales tax applies in NJ. Paypal activity downloads make record keeping a breeze. NJ has an online filing system that takes under 2 minutes to file quarterly.

I have the occasional buyer complain, but I just politely explain that I will not engage in tax evasion to get a few extra sales on ebay. Once I put it in those terms, I have never had a follow-up request to not pay NJ tax.

ebaytrader

<< <i>sellers that charge a state sales tax need to realize that some states, such as Florida, require no sales tax on coins. >>



Only on US coins. Foreign coins and bullion are taxable on sales of less than $500.

derryb

I stand corrected as Ebaytrader noted:. No FL sales tax on US coins and currency. Note that American Eagles and gold buffalos as well as earlier US gold meet FL's definition of US coins (legal tender):

From the FL website:
"Effective July 1, 1999, the sale of coins and currency that are U.S. legal tender is no longer taxable. The sale of any other coin and any other currency with a price of more than $500, and the sale of gold, silver, and platinum bullion with a price of more than $500, is exempt.

For coins and currency that are legal tender of the United States, no tax is imposed regardless of whether the sales price exceeds the face value. It does not matter whether the coins or currency are in circulation.

For coins and currency that are not legal tender of the United States, tax is imposed at the rate (unchanged) of 6% of the sales price, unless the coins or currency have a sales price that exceeds $500. When the sales price exceeds $500 for a single sale, the transaction is exempt from sales and use tax. Note: The present exemption for coins and currency of general circulation that are legal tender of another nation, when exchanged solely for use as legal tender at an exchange rate based on its relative value, is not affected by this change.

Sales of gold, silver, and platinum bullion are exempt if the sales price exceeds $500 in a single transaction. A single transaction could include a combination of gold, silver, or platinum bullion."

UNCOnly

<< <i>Just out of curiosity,how may of the ebay sellers here who hold a tax exempt/sellers permit in their given state, charge sales tax on your sales on ebay? I know it may be a touchy subject, but since there is a record of the sale,(paypal,and ebay) I would assume if it is an in state sale, you the seller claim the tax. Do you pass that on to the buyer? I ask because I have a sellers permit, and have been charging tax for in state sales, and I have had a couple complaints from buyers. >>



NY requires sales tax to be charged to NY residents.

bigjpst

<< <i>

NY requires sales tax to be charged to NY residents. >>


Yes, CA, is the same, but it is written in the tax code that seller is required to pay the tax, and May pass that expense on to the customer. Just wanted to know how many sellers chose to eat the tax out of their profit, and how many charge it to the customer. I don't expect anyone who doesn't pay their tax to respond

PerryHall

<< <i>I think it should be announced ahead of time. I purchased a coin without realizing that sales tax would be levied against me. Needless to say, I'm not happy about it. >>


Agree. It may save the seller a neg.

coinman23885

<< <i>So are you disappointed when you go to the grocery store and they charge you sales tax?

It's the law, so I'm not sure why you are disappointed that sellers follow the law. >>



For the record, the particular seller that I was referencing did not specifically list that they were selling from my state. If my memory serves me correctly, the eBay location was something vague.

coinman23885

<< <i>nothing wrong with collecting taxes on behalf of the state, especially when they require you to do so. What is wrong is for an ebay seller to collect taxes on behalf of a state and pocket them.

In-state buyers have no valid complaint when the seller makes the taxes clear in the listing. >>

Hawgstick

<< <i>So are you disappointed when you go to the grocery store and they charge you sales tax?

It's the law, so I'm not sure why you are disappointed that sellers follow the law. >>



I would be very disappointed to be taxed on groceries here in California. I would also not want to pay taxes on a coin purchase over $1500.00.
That being said.....I would rather be safe than sorry and pay sales tax when it is due. The IRS is no joke and with the current fiscal crisis I am sure they will come after anything they can.

mbogoman

<< <i>I only charge sales tax on sales in my state of business. Ebay has a sales tax table that you can check that will add sales tax automatically to the states that you are required to collect. The sales tax information goes into the section on the listing page marked Shipping and Payments. On my listings, in that section, it clearly states I charge sales tax on California purchases. I refunded the most recent complaint the tax charged because it was a very small amount, and I had the room on my margin, but my margin is thin enough so that once ebay, and paypal get their vig, another 9% most of the time, would make selling pointless. >>



Ditto. Fortunately, most of my sales are outside of the Peoples Republic of Kalifornia. I don't know how many sales are lost by the fact that I do charge sales tax in state (and duly remit the collected amount to the politburo in Sacramento), but I can imagine that a few are...

RichR

Tax...tax?

What is this thing called "tax" that you speak of?!?

ParkieCollector

Normally when a seller charges tax, Ebay will list it in the pop up window before you finalize your bid.
If you use one click bidding, or a sniper, I guess you never see it.

Staircoins

I do not sell on ebay as frequently as I used to, but when I do list an item I clearly state that I hold a valid resellers license, which is available upon request, and that items that are shipped to addresses within my state are subject to state sales tax, unless the buyer provides me with a valid resale permit.

I have never had anyone complain, nor to my knowledge, had the policy queer a deal.

CarlWohlforth

I am required to collect and turn over sales tax by the state of California for items sold in the state. Re-sellers (other dealers) can buy w/o paying tax if they send me a copy of their valid permit. I think some people are out of the bidding because of the tax. They have to be willing to pay 8% more than bidders from other states.

nickel

"" It's the law, so I'm not sure why you are disappointed that sellers follow the law. ""

They are disappointed that in addition to the agreed on price , they have to fork over
$1.75 more , or $4.85 or $11.20 or whatever .
Back in the 1970's , I attended and bought coins at a local show .I dont remember
anyone adding 6% to my purchase . It's the way things were done .
The internet is a whole different world . All these 'knowledgeable' buyers have the
answers .
1 I dont pay tax , I'm a part time dealer
2 I dont live in Idaho , so it don't apply
3 You can't charge me , this is the internet .
4 Coins ain't taxable , I bought 12 DVD's with no tax .
5 I want to retract my bid .
6 What , you lookin for a red mark ?
7 What's your problem? Cancel the tax. Who's gonna know?
8 For all the knowledge out there , I bet about half of them
can't fill out their own 1040 EZ

TwoSides2aCoin

I'll have to get an update on the tax code for clarification.

Silverstate

<< <i>So are you disappointed when you go to the grocery store and they charge you sales tax?

It's the law, so I'm not sure why you are disappointed that sellers follow the law. >>



No Sales Tax on Food....At least in NV. :-)

Cougar1978

If a seller is required by law to collect sales tax to shipments in his state by law then ebay buyers should not be surprised. I would advise having a statement in the terms of sale "we are required by law to collect sales tax on shipments to xxxxx."