Sales Tax for NJ question.

ormandh

I just purchased a coin on Ebay and was charged sales tax for the transaction. I, myself, sell on eBay and was wondering if this is now the requirement for any eBay sales I happen to make for New Jersey sales? -Dan

LochNESS

Far as I know, ebay has always included a sales tax option on its listings, and on the checkout/payment options screens. It's up to the seller to determine whether or not to charge and how much. Next time someone buys something from you, and you send them an "eBay invoice," look under the shipping charges line and you should see sales tax. It's set to zero by default. Many sellers advertise in their descriptions fine print that they charge sales tax to certain states.

I have never been charged, and I have bought from GA sellers. Once I asked about local pickup and they claimed they had moved to CA. I believe they were afraid of getting caught with sales tax.

ajaan

If you have a business and have a Sales Tax ID I would think you would be required to collect sales tax from any in state sale, eBay or not. That's the way it is in NY. In your case I would request the sellers Tax ID to make sure they have one and not just charging you more for the item in the guise of a sales tax.

edited to add the "in state"

LochNESS

No actually, if you buy something from out-of-state then you don't have to pay sales tax. This is an old and popular way of saving money. Furthermore, some cities (states?) don't even have sales tax. My brother-in-law lives in Seattle, WA and never pays sales tax. At least that's my understanding. They have some other tax instead, I think maybe a higher state tax or something.