KUDOS to eBay - GREAT JOB on the sales tax issue

jmlanzaf · July 9, 2019 6:00AM

I have to say, eBay has done a tremendous job with this tricky sales tax issue. It is seamless! I was looking through my sales from last week and noticed tax collection for 8 different states - and I had to do NOTHING!!! No paperwork for me to file, no checks to write.

Good job, eBay!!

ricko · July 9, 2019 6:41AM

Interesting... good deal for sellers for sure.... Meanwhile, ebay collects interest on the funds prior to submitting to the states. Cheers, RickO

Coinstartled · July 9, 2019 6:53AM

@ricko said:
Interesting... good deal for sellers for sure.... Meanwhile, ebay collects interest on the funds prior to submitting to the states. Cheers, RickO

tokenpro · July 9, 2019 8:26AM

It's not bad on a transactional basis but the other shoe will be how they communicate their actions to the seller on a reconciliation basis at the end of the reporting period / year. I have had sales tax added to some transactions within my state and some with no tax added to retail customers. This could create a cluster at the end of the year if it is not broken down clearly and correctly for reconciliation with other retail, wholesale and show sales. It also leaves open the reporting needs of other states where you may or may not have reached the minimum threshold.

jmlanzaf · July 9, 2019 8:56AM

@ricko said:
Interesting... good deal for sellers for sure.... Meanwhile, ebay collects interest on the funds prior to submitting to the states. Cheers, RickO

It's a zero interest rate environment still, so their is limited float. They also probably have to remit quarterly.

blu62vette · July 9, 2019 8:58AM

I hesitate to bid more now not knowing if there will be tax if I win. Are you seeing the tax when you bid on things?

ctf_error_coins · July 9, 2019 9:01AM

So this takes effect in California in October.

I do all the paperwork now for any sales tax related invoices on which I collect and remit the state sales tax.

Are you saying that all the eBay related state tax collection is now done thru ebay and remitted by ebay with no paperwork for you?

So what I submit to the State will drop off dramatically and the stare must know that?

jmlanzaf · July 9, 2019 9:32AM

@blu62vette said:
I hesitate to bid more now not knowing if there will be tax if I win. Are you seeing the tax when you bid on things?

It depends only on the state you live in. If you are in one of the states that is taxing the internet then there IS tax, ALWAYS.

It doesn't matter where the seller is located.

jmlanzaf · July 9, 2019 9:35AM

@ErrorsOnCoins said:
So this takes effect in California in October.

I do all the paperwork now for any sales tax related invoices on which I collect and remit the state sales tax.

Are you saying that all the eBay related state tax collection is now done thru ebay and remitted by ebay with no paperwork for you?

So what I submit to the State will drop off dramatically and the stare must know that?

They are collecting NY sales tax on in-state sales so I no longer have to. Of course, I still have to file my annual Sales Tax Return, but I should be able to just include whatever eBay collected as "sales tax paid".

I don't yet know what the eBay reporting form will look like as I haven't received one yet. It SHOULD list total sales and tax collected by county [that's how NY does it] and I would assume I can just enter those on the tax form.

djm · July 9, 2019 10:27AM

@jmlanzaf said:

@ricko said:
Interesting... good deal for sellers for sure.... Meanwhile, ebay collects interest on the funds prior to submitting to the states. Cheers, RickO

It's a zero interest rate environment still, so their is limited float. They also probably have to remit quarterly.

Only very small volume sellers submit quarterly. eBay most likely be required to submit monthly if not weekly

jwitten · July 9, 2019 10:43AM

My ebay sales have been slowly getting worse this year. I'm guessing the tax is the main reason.

johnny9434 · July 9, 2019 10:44AM

it makes me wonder how much money if any ebay might make on it before the states get the money, just saying is all

Coinstartled · July 9, 2019 10:53AM

@johnny9434 said:
it makes me wonder how much money if any ebay might make on it before the states get the money, just saying is all

At this point there are many more questions than answers.

Perhaps Ebay could do a webinar for sellers (and buyers) on the issue rather than all of the speculation.

Maybe thy already have.

TwoSides2aCoin · July 9, 2019 11:22AM

I'm just adding meaningless fodder to an otherwise useless thread.

johnny9434 · July 9, 2019 11:27AM

@Coinstartled said:

@johnny9434 said:
it makes me wonder how much money if any ebay might make on it before the states get the money, just saying is all

At this point there are many more questions than answers.

Perhaps Ebay could do a webinar for sellers (and buyers) on the issue rather than all of the speculation.

Maybe thy already have.

if they did I wish they would let us know as well. best wishes

Coinstartled · July 9, 2019 11:45AM

@TwoSides2aCoin said:
I'm just adding meaningless fodder to an otherwise useless thread.

Maybe Ebay could just add on a 20% buyer fee on to each sale and after doling out the taxes, just hand out the rest as shareholder dividends.

ShadyDave · July 9, 2019 12:17PM

@jwitten said:
My ebay sales have been slowly getting worse this year. I'm guessing the tax is the main reason.

I've definitely slowed down my eBay buying in 2019. It's harder to find rips or good deals when you add in 6.35% sales tax on top on eBay. I'd rather go to my LCS, coin show or use forums to try to find items I want.

jmlanzaf · July 9, 2019 5:02PM

@ShadyDave said:

@jwitten said:
My ebay sales have been slowly getting worse this year. I'm guessing the tax is the main reason.

I've definitely slowed down my eBay buying in 2019. It's harder to find rips or good deals when you add in 6.35% sales tax on top on eBay. I'd rather go to my LCS, coin show or use forums to try to find items I want.

Hmmm...your local LCS and coin show should also be charging sales tax....

jmlanzaf · July 9, 2019 5:07PM

@djm said:

@jmlanzaf said:

@ricko said:
Interesting... good deal for sellers for sure.... Meanwhile, ebay collects interest on the funds prior to submitting to the states. Cheers, RickO

It's a zero interest rate environment still, so their is limited float. They also probably have to remit quarterly.

Only very small volume sellers submit quarterly. eBay most likely be required to submit monthly if not weekly

Depends on the state laws, doesn't it? NY only has monthly, quarterly and annual. Not sure what the rules are for eBay as the post-Wayfair law is new.

jmlanzaf · July 9, 2019 5:08PM

@johnny9434 said:
it makes me wonder how much money if any ebay might make on it before the states get the money, just saying is all

Less than I would since I'm an annual filer.

jwitten · July 9, 2019 6:09PM

@jmlanzaf said:

@ShadyDave said:

@jwitten said:
My ebay sales have been slowly getting worse this year. I'm guessing the tax is the main reason.

I've definitely slowed down my eBay buying in 2019. It's harder to find rips or good deals when you add in 6.35% sales tax on top on eBay. I'd rather go to my LCS, coin show or use forums to try to find items I want.

Hmmm...your local LCS and coin show should also be charging sales tax....

I mean when I sell though. Now that more and more people are having to pay tax, the final sales prices for my auctions have been getting lower and lower. Just like I expected.

vplite · July 9, 2019 7:51PM

@jwitten said:

@jmlanzaf said:

@ShadyDave said:

@jwitten said:
My ebay sales have been slowly getting worse this year. I'm guessing the tax is the main reason.

I've definitely slowed down my eBay buying in 2019. It's harder to find rips or good deals when you add in 6.35% sales tax on top on eBay. I'd rather go to my LCS, coin show or use forums to try to find items I want.

Hmmm...your local LCS and coin show should also be charging sales tax....

I mean when I sell though. Now that more and more people are having to pay tax, the final sales prices for my auctions have been getting lower and lower. Just like I expected.

I know as a bidder on bullion type coins, i.e. I always factor sales tax in my bid.

U1chicago · July 9, 2019 8:29PM

@jmlanzaf said:

@johnny9434 said:
it makes me wonder how much money if any ebay might make on it before the states get the money, just saying is all

Less than I would since I'm an annual filer.

If they do use the money, they will make more than you just based on the amount they collect. Even if they remit monthly, the amount they collect for all the sellers is scores above what you collect in a year.

jmlanzaf · July 9, 2019 11:11PM

@U1chicago said:

@jmlanzaf said:

@johnny9434 said:
it makes me wonder how much money if any ebay might make on it before the states get the money, just saying is all

Less than I would since I'm an annual filer.

If they do use the money, they will make more than you just based on the amount they collect. Even if they remit monthly, the amount they collect for all the sellers is scores above what you collect in a year.

A percent is a percent. Certainly they have a bigger float. But they are only the amalgamation of all the individuals that are out there.

jdimmick · July 10, 2019 2:04AM

I brought this up in a previous thread, about does anybody see a drop off in bids? , but its been several months on a lot more states and yes, I do. I am a dealer, and have yet to submit my exemption status to ebay, but I buy 0 coins off there to resell, so I haven't taken the time too. What I sell on ebay is stuff bought over the counter.

LanceNewmanOCC · July 10, 2019 6:54AM

@jwitten said:
My ebay sales have been slowly getting worse this year. I'm guessing the tax is the main reason.

fwiw, at the top of the ebay screen, my state was recently added and there is the option to add the RRMC number to be tax exempt. it is fairly quick and easy to become DBA.

there should also be ebay screen(s) allowing for policy settings adjusting for tax collection. tinkering with these things can be of great assistance.

unfortunately, it is a challenge and must be addressed.
.

Cougar1978 · July 10, 2019 6:56AM

I have not seen any sales tax on transactions. I am in Texas where sale of coins is exempt.

Sales tax is a sch c expense along with travel, fees, mileage, meals, office (books, supplies, postage, rentals, etc.). Refer to IRS form sch c.

I have not seen a drop off on online activity sales have been better than what I would expect for the slow summer season. However I did win grades 2 banknotes at really good prices. A PMG 66 low pop world note for $65 (raw Unc cv $240) very easily a $450 item and a scarce bank PMG 25 NBN for $125 estimated sell $350. I don’t plan any coin purchases until aug show setup at (next to wholesaler) or if I purchase an estate deal will be viewing today. Most of it seems to be common silver which CDN bid 95 pct bv. Due to tight margins not very appealing but some silver dollars prob circ. One cc and a gsa or ones I definitely want look at. About 55 pf sets from 1964 (take at blue book) and 33 rolls of WLH (most likely circ) common take at bv if not less.

Sales of collectible coins remain slow / margins forced tight. Lower, deceasing pop of buyers dragging down market. Bullion slight uptick but trading in narrow range. Currency continues to be slow. There does not seem to be fresh buyers with spending money at shows I have attended.

There was a peak in eBay activity prior to the 4th. Summer I view as more of a buying season.

jwitten · July 10, 2019 10:07AM

@LanceNewmanOCC said:

@jwitten said:
My ebay sales have been slowly getting worse this year. I'm guessing the tax is the main reason.

fwiw, at the top of the ebay screen, my state was recently added and there is the option to add the RRMC number to be tax exempt. it is fairly quick and easy to become DBA.

there should also be ebay screen(s) allowing for policy settings adjusting for tax collection. tinkering with these things can be of great assistance.

unfortunately, it is a challenge and must be addressed.
.

I have submitted the paperwork to not have to pay tax when I buy. That helps. BUT many many customers and bidders are now having to pay tax, which means less money to me, more to the government.

Coinstartled · July 10, 2019 10:26AM

@jwitten said:

@LanceNewmanOCC said:

@jwitten said:
My ebay sales have been slowly getting worse this year. I'm guessing the tax is the main reason.

fwiw, at the top of the ebay screen, my state was recently added and there is the option to add the RRMC number to be tax exempt. it is fairly quick and easy to become DBA.

there should also be ebay screen(s) allowing for policy settings adjusting for tax collection. tinkering with these things can be of great assistance.

unfortunately, it is a challenge and must be addressed.
.

I have submitted the paperwork to not have to pay tax when I buy. That helps. BUT many many customers and bidders are now having to pay tax, which means less money to me, more to the government.

Yes. Similar to the argument as to who pays the auction buyers fee at Heritage or Stacks. Bidders factor that in and it is the seller that takes the hit.

GRANDAM · July 10, 2019 10:51AM

When a seller collects sales tax when you file the form with your state they allow you to keep a percentage,,,,, in my state it is 1% I believe but would have to check as I only file once a year and I don't really remember. I only file once a year due to small taxable sales but the 1% could add up for eBay I would suspect.

LanceNewmanOCC · July 10, 2019 11:19AM

@jwitten said:
BUT many many customers and bidders are now having to pay tax, which means less money to me, more to the government.

hmm. if you are tax exempt, it shouldn't be less to you because your customers don't have to pay more because they don't have to pay tax. hence tax-exempt. it means you are not required to collect sales tax for your items sold in-state, out of state in-person and online. they only exception i think is if you are at a show out of state or maybe out of the country. not sure about the last 2 as they can get a bit confusing from state-to-state.

please let me know if there is something not making sense.

i will admit, and i don't know why i thought this: customers would have to pay tax regardless of a business owners tax-exempt status for online sales but seeing that banner at the top of the ebay homepage cleared that up thankfully.

our state became numismatically tax-exempt as of either 2016 or 2017. i think it was july 17 but i still need to upload my rrmc to ebay, similar to how i have to fill out the form at some shops so they have my exempt status on file.

hope it helps, truly.

i small business owner/operators!
.

LanceNewmanOCC · July 10, 2019 11:32AM

@Coinstartled said:
Yes. Similar to the argument as to who pays the auction buyers fee at Heritage or Stacks. Bidders factor that in and it is the seller that takes the hit.

similar yes; but rrmc allows buyers to have recourse by buying from tax-exempt sellers or sellers that don't collect by not having an rrmc but i don't recommend the latter as does the irs/gov.

i'm not sure there is much of recourse for buying at auction houses except to be a vip buyer which isn't available to everyone but big spenders. i'm glad there is at least some recourse.
.

Coinstartled · July 10, 2019 2:44PM

@LanceNewmanOCC said:

@Coinstartled said:
Yes. Similar to the argument as to who pays the auction buyers fee at Heritage or Stacks. Bidders factor that in and it is the seller that takes the hit.

similar yes; but rrmc allows buyers to have recourse by buying from tax-exempt sellers or sellers that don't collect by not having an rrmc but i don't recommend the latter as does the irs/gov.

i'm not sure there is much of recourse for buying at auction houses except to be a vip buyer which isn't available to everyone but big spenders. i'm glad there is at least some recourse.
.

What is a vip buyer and what are the benefits?

jmlanzaf · July 10, 2019 3:13PM

@GRANDAM said:
When a seller collects sales tax when you file the form with your state they allow you to keep a percentage,,,,, in my state it is 1% I believe but would have to check as I only file once a year and I don't really remember. I only file once a year due to small taxable sales but the 1% could add up for eBay I would suspect.

Actually, I'm not sure how that will work. They are collecting on my behalf. I should still have to file. Who gets the 1%? I'm not sure it isn't me.

jmlanzaf · July 10, 2019 3:16PM

@LanceNewmanOCC said:

@Coinstartled said:
Yes. Similar to the argument as to who pays the auction buyers fee at Heritage or Stacks. Bidders factor that in and it is the seller that takes the hit.

similar yes; but rrmc allows buyers to have recourse by buying from tax-exempt sellers or sellers that don't collect by not having an rrmc but i don't recommend the latter as does the irs/gov.

i'm not sure there is much of recourse for buying at auction houses except to be a vip buyer which isn't available to everyone but big spenders. i'm glad there is at least some recourse.
.

I'm not sure I understand this at all.

A coin seller is not exempt from collecting tax, he's simply exempt from paying tax.

GRANDAM · July 10, 2019 3:19PM

@jmlanzaf said:

@GRANDAM said:
When a seller collects sales tax when you file the form with your state they allow you to keep a percentage,,,,, in my state it is 1% I believe but would have to check as I only file once a year and I don't really remember. I only file once a year due to small taxable sales but the 1% could add up for eBay I would suspect.

Actually, I'm not sure how that will work. They are collecting on my behalf. I should still have to file. Who gets the 1%? I'm not sure it isn't me.

It would be eBay,,,,,, the 1% is for doing the paperwork,,,,, collecting it and sending it to the state so eBay is doing this and they will get whatever the % is.

You won't have to file anything on sales tax collected by eBay on eBay,,,,,,, you didn't collect anything so nothing to report,,,, on your form where you list your gross sales all the eBay sales would be listed under exempt collections so no tax due by you.

jmlanzaf · July 10, 2019 3:21PM

@jdimmick said:
I brought this up in a previous thread, about does anybody see a drop off in bids? , but its been several months on a lot more states and yes, I do. I am a dealer, and have yet to submit my exemption status to ebay, but I buy 0 coins off there to resell, so I haven't taken the time too. What I sell on ebay is stuff bought over the counter.

I really haven't. Frankly, there's no place for the buyer to go. If their state charges sales tax, the only thing they can do is physically travel out of state. For moderately priced coins, who's going to drive 3 hours to cross state lines to save $10 in sales tax?

jmlanzaf · July 10, 2019 3:22PM

@GRANDAM said:

@jmlanzaf said:

@GRANDAM said:
When a seller collects sales tax when you file the form with your state they allow you to keep a percentage,,,,, in my state it is 1% I believe but would have to check as I only file once a year and I don't really remember. I only file once a year due to small taxable sales but the 1% could add up for eBay I would suspect.

Actually, I'm not sure how that will work. They are collecting on my behalf. I should still have to file. Who gets the 1%? I'm not sure it isn't me.

It would be eBay,,,,,, the 1% is for doing the paperwork,,,,, collecting it and sending it to the state so eBay is doing this and they will get whatever the % is.

You won't have to file anything on sales tax collected by eBay on eBay,,,,,,, you didn't collect anything so nothing to report,,,, on your form where you list your gross sales all the eBay sales would be listed under exempt collections so no tax due by you.

I haven't looked into this, but are you sure? Do you have a link?

GRANDAM · July 10, 2019 3:23PM

I am sure but no link. Call eBay and ask them,,,,, you don't collect it they do. Not your problem,,,,,,,,,,,,,,,,,,,,,, THANKFULLY

GRANDAM · July 10, 2019 3:25PM

My account charges $150 / HR and that is what he told me,,,,,,,, so if he is wrong I will FIRE him,,,,,,

jmlanzaf · July 10, 2019 3:32PM

@jmlanzaf said:

@GRANDAM said:

@jmlanzaf said:

@GRANDAM said:
When a seller collects sales tax when you file the form with your state they allow you to keep a percentage,,,,, in my state it is 1% I believe but would have to check as I only file once a year and I don't really remember. I only file once a year due to small taxable sales but the 1% could add up for eBay I would suspect.

Actually, I'm not sure how that will work. They are collecting on my behalf. I should still have to file. Who gets the 1%? I'm not sure it isn't me.

It would be eBay,,,,,, the 1% is for doing the paperwork,,,,, collecting it and sending it to the state so eBay is doing this and they will get whatever the % is.

You won't have to file anything on sales tax collected by eBay on eBay,,,,,,, you didn't collect anything so nothing to report,,,, on your form where you list your gross sales all the eBay sales would be listed under exempt collections so no tax due by you.

I haven't looked into this, but are you sure? Do you have a link?

Actually, you are correct, I found the bulletin:

https://tax.ny.gov/pdf/memos/sales/m19-2s.pdf

jmlanzaf · July 10, 2019 3:33PM

@GRANDAM said:
My account charges $150 / HR and that is what he told me,,,,,,,, so if he is wrong I will FIRE him,,,,,,

LOL. I found the NYS bulletin. You are correct. Let your accountant know he dodged a bullet

GRANDAM · July 10, 2019 3:36PM

@jmlanzaf said:

@GRANDAM said:
My account charges $150 / HR and that is what he told me,,,,,,,, so if he is wrong I will FIRE him,,,,,,

LOL. I found the NYS bulletin. You are correct. Let your accountant know he dodged a bullet

That is good because I LIKE my accountant,,,,,,, glad I don't have to FIRE him

Coinstartled · July 10, 2019 5:13PM

Before this is over, there will be a prison with a special wing for Ebay sellers. Top rated guys will get an extra slice of bread.

ctf_error_coins · July 10, 2019 5:28PM

@Coinstartled said:
Before this is over, there will be a prison with a special wing for Ebay sellers. Top rated guys will get an extra slice of bread.

At some point, eBay may come after you.

Collectors Universe should certainly Ban you for your constant eBay lies, falsehoods, and disparagement.

Coinstartled · July 10, 2019 6:46PM

@ErrorsOnCoins said:

@Coinstartled said:
Before this is over, there will be a prison with a special wing for Ebay sellers. Top rated guys will get an extra slice of bread.

At some point, eBay may come after you.

Collectors Universe should certainly Ban you for your constant eBay lies, falsehoods, and disparagement.

From the dude that called Ebay customer service, cursed at the underpaid overseas staff and slammed the phone down on them in disgust.

Should I pull up that thread for you?

ctf_error_coins · July 10, 2019 6:56PM

@Coinstartled said:

@ErrorsOnCoins said:

@Coinstartled said:
Before this is over, there will be a prison with a special wing for Ebay sellers. Top rated guys will get an extra slice of bread.

At some point, eBay may come after you.

Collectors Universe should certainly Ban you for your constant eBay lies, falsehoods, and disparagement.

From the dude that called Ebay customer service, cursed at the underpaid overseas staff and slammed the phone down on them in disgust.

Should I pull up that thread for you?

Please do, I always stand by my words unless proven wrong by fact.

I want to see just how pathetic your life is if you spend time searching for that thread and / or you have it bookmarked.

How sad.

LanceNewmanOCC · July 11, 2019 9:33AM

.
nm

answered in another post.
.

jmlanzaf · July 11, 2019 9:47AM

@Coinstartled said:
Before this is over, there will be a prison with a special wing for Ebay sellers. Top rated guys will get an extra slice of bread.

I'm not sure why eBay sellers - who are people like you and me - are going to jail. I must have missed something.

GRANDAM · July 11, 2019 11:57AM

eBay is making life for me hard,,,,,, (trying to be nice) They replied to my Sales Tax Exemption request and said they need a different certificate. I sent the certificate my state issues. It authorizes me to collect sales tax on sales and exempts me from paying sales tax on purchases made for resale.

My 8th call on trying to get this fixed but,,,,,,,,,, waiting on a supervisor now. Girl didn't want to connect me to supervisor but I insisted. They tried to tell me that I need a cert from every state I want to buy from.

ctf_error_coins · July 11, 2019 12:01PM

Grand Am it is a different form, I went thru this .....

In Ca I needed to submit my Resale Permit and this form .....

...................

KUDOS to eBay - GREAT JOB on the sales tax issue

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