Ebay sales tax
Wink
Posts: 103 ✭✭
Just picked up a couple items and my invoice(seller is from another state) included some sales tax from my state at a rate that isn't even close to what we actually pay...I didn't see that he collects tax and didn't care as he was from another state and I have never been charged by anyone, let alone someone from another state. Looking closer I see that he's collecting for all 50 + DC @ PR! Thoughts anyone.
His ID and he's not a newby...broadway-sports-and-music Cheers
His ID and he's not a newby...broadway-sports-and-music Cheers
0
Comments
I'm sure cpamike can chime in here and set me straight, lol..
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
<< <i>Thanks for the response. I get the feeling he's going to pocket it. I looked at his feedback and no one has called him on it....YET. Plus his item description page with shipping fees is a mess(different amounts) and he says ebay ship fee? >>
Yeah, it is confusing. He says "ONE TO 5 PHOTO'S - SHIPPING WILL BE 2.99 PLUS E-BAY SHIPPING CHARGE."
I don't know what the heck that means, and I don't think he's allowed to charge an unknown fee like that.
<< <i>I'm not entirely sure, but I don't believe a seller can charge sales tax in a state unless they are based or operating business in that state. As far as I recall, sales tax for an on line purchase from a seller in a different state is technically the responsibility of the buyer to remit to his home state (though no one ever does this, and that is why the idea of an flat "internet" sales tax is being discussed). The seller cannot, to my knowledge, collect state sales tax for a state in which he does not reside or physically conduct business in.
I'm sure cpamike can chime in here and set me straight, lol.. >>
You are spot on. It sounds like this guy is charging sales tax and pocketing the amount for any state besides where he is physically located. That is not only against e-bay rules, but against the law.
Rgs,
Greg M.
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I think they would be very upset.
Edit to add: A seller must have a sales tax certificate and be registered with the state to be able to legally collect sales tax. Any attempt to collect the tax without it can be prosecuted.
<< <i>You know what I would do? I'd contact the state you live in (the one he is collecting tax for), and let them know he's collecting sales tax and not paying it.
I think they would be very upset.
Edit to add: A seller must have a sales tax certificate and be registered with the state to be able to legally collect sales tax. Any attempt to collect the tax without it can be prosecuted. >>
thats about par here in Michigan.
AFAIK there is no state that allows a seller to charge tax for interstate commerce (New York and California among others were trying to get such laws passed but limited to merchants who do something like $250K or more in annual sales) for every state in the union, and there is no "national" Internet Sales Tax as yet.
If you have a name or business name it's fairly easy (at least in CA) to verify if the merchant has a sales tax permit for that state.
<< <i>You know what I would do? I'd contact the state you live in (the one he is collecting tax for), and let them know he's collecting sales tax and not paying it.
I think they would be very upset.
Edit to add: A seller must have a sales tax certificate and be registered with the state to be able to legally collect sales tax. Any attempt to collect the tax without it can be prosecuted. >>
Exactly. Either ask the seller for the state sales tax permit number he has with your state or contact the state directly and see if he is registered to collect your state's taxes.
It would be a big burden to file all the different states returns with remission of collected sales tax monthly/quarterly/annually.
The only reason I could come up with for doing this is the retailer gets a small percentage of the tax they collect to cover the record keeping expense. But most states that is a very small percentage.
<< <i>
<< <i>You know what I would do? I'd contact the state you live in (the one he is collecting tax for), and let them know he's collecting sales tax and not paying it.
I think they would be very upset.
Edit to add: A seller must have a sales tax certificate and be registered with the state to be able to legally collect sales tax. Any attempt to collect the tax without it can be prosecuted. >>
Exactly. Either ask the seller for the state sales tax permit number he has with your state or contact the state directly and see if he is registered to collect your state's taxes.
It would be a big burden to file all the different states returns with remission of collected sales tax monthly/quarterly/annually.
The only reason I could come up with for doing this is the retailer gets a small percentage of the tax they collect to cover the record keeping expense. But most states that is a very small percentage. >>
In Texas we get to keep 3/4 of 1 percent of the sales tax if we collect it and pay it early (before the 20th of each month). Collecting tax and not remitting it, or collecting it without a tax id number would be a huge illegal issue. In Texas the State Comptroller agents carry guns and will go to a business, open the cash drawer and take their money if you don't remit the collected taxes.....of course this is after they have called and contacted you first.
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what did you buy. i do state wait for me to send a new invoice
before paying. i take the tax off. in congress right now is a bill stating a
internet tax. i put the tax on, so this way when congress passes the bill i will not have to delete all my listing and redo them.
jeff
ps what is the card you won. and i will refund the tax to you
- broadway-sports-and-music
As suspected, he's been pocketing the tax for who knows how long. My thoughts are to tell him if he doesn't change his ways, he'll be reported to whomever.... Any thoughts or better ideas appreciated. TIA
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
<< <i>Just an update. I called out the seller after checking to see if he's registered in my state(NOT). I have already received the items. Here's the lame response I received today:
what did you buy. i do state wait for me to send a new invoice
before paying. i take the tax off. in congress right now is a bill stating a
internet tax. i put the tax on, so this way when congress passes the bill i will not have to delete all my listing and redo them.
jeff
ps what is the card you won. and i will refund the tax to you
- broadway-sports-and-music
As suspected, he's been pocketing the tax for who knows how long. My thoughts are to tell him if he doesn't change his ways, he'll be reported to whomever.... Any thoughts or better ideas appreciated. TIA >>
That has ILLEGAL written all over it. The bill in congress could take forever to pass both houses and then go through committe hearings and final write-up. And then there would be a big hubbub of when this would finally be implemented on EBay. What length of listings does this chump run? 6 months, 2years?
And how did he not know what auction(s) you won? he will have problems should there ever be any audit.
Sorry for the tax rant. Even though I think the government is ever encroaching on the rights of taxpayers, rules still have to be followed and not manipulated to making a quick buck.
Since I hardly go on EBay, is this seller still charging the sales tax?
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