E-Bay collects sales tax
jkrk
Posts: 992 ✭✭✭✭✭
I bought a coin on E-Bay earlier this week and was surprised that a tax was added to the bill.
I did a bit of quick research and noticed that E-Bay started collecting the tax on June 1. I read the ruling and noted that any gold coin purchase for over $1000 and was sold for 115% above the gold price would be exempt from tax.
I called E-Bay and they said they were taxing everything.
I guess my days of buying coins (even with the 10% e-Bucks) are over.
Selling on E-Bay also works against me (the very small seller). A number of states regulation reads that if the seller sells less than $10,000 and many $100,000 then there is no need to register and thus collect any tax. However, since E-Bay is the aggregator then the limits fall under E-Bays total sales within that state. Thus I need to bypass E-Bay and sell direct?
I'm sitting here wondering how E-Bay's business can be maintained at current levels with all the tax laws changing?
Comments
eBay is where coin collecting goes to die.
It depends on what state you are in.
There are numerous threads on this site discussing this already.
There was a time in this country, that taxes caused a rebellion.... now everything is taxed...and taxes upon taxes....and people just pay..... Reminds me of the frog in the pot... slowly brought to a boil... Too late for the frog. Cheers, RickO
news to me, where did you see this?
No Way Out: Stimulus and Money Printing Are the Only Path Left
I just got hit on a CA to NY item, for sales tax.
It sucked.
BHNC #203
Do not blame ebay, blame the state laws which ebay is following.
To Ebay's credit, they did lobby against the sales tax collecting, but as you can see, did no good. So they did try.
Yes and no. The only states where coins are taxed are states in which coins are taxed.
If you are in a state that has no tax on bullion or coins, eBay will exempt those items.
If you are in a state that Has a tax on bullion or coins, you should already be paying it at local B&Ms and coin shows.
So, it boils down to how many states tax bullion and/or coins. There is a website that lists them if you want to google it.
If you are in a state that doesn't (Florida), you can freely buy from me tax-free still even though I'm in NY, a state which does tax coins.
This is really relevant for me today. I went to eBay and looked at a Platinum 1 ounce coin and I get taxed. At Provident I do not. Guess which one is going to work for me?
and there is quite a few
Pay the tax, move, or petition to change the state law.
One more... run for office.
Nothing but another money grab. Time for smaller government.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
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If it's a volume exception, you better stock up because Provident will be collecting tax soon. It's based on where you live not where the company is located.
New York Gold & Silver Bullion / Collectible State Sales Taxes
Rules and Regulations for the State of New York
The State of New York requires the collection of sales taxes on certain products sold by JM Bullion and delivered to a New York address. These taxes must be collected on (1) copper products; (2) bullion products if the sale amount does not exceed $1,000; (3) bullion products if the sale amount exceeds $1,000, and such bullion products are further manufactured, processed, assembled, or fabricated by the buyer; (4) bullion products if the sale amount exceeds $1,000, and the price paid for such products depends on more than the metal content of such products; (5) accessory items; and (6) processed items. All other products sold by JM Bullion are exempt from these taxes.
The following definitions apply to products on which taxes must be collected in New York:
Bullion. Precious metal that is valued solely upon its precious metal content, whether in bar, coin, or ingot form.
Sale Amount. Determined per invoice, and not on a line-item basis.
Price Paid. Price paid is deemed to be based on the metal content if such price does not exceed the greater of the daily closing bullion cash price of such metal or the coins’ face value at prevailing rates of exchange by the following percentages: (a) with respect to silver coins, 140%; (b) with respect to gold coins weighing one-quarter ounce or less, 120%; or (c) with respect to other coins, including gold coins weighing more than one-quarter ounce, 115%. The price paid for bars or ingots is deemed to be based on its metal content if the price paid for the same does not exceed 115% of the bullion cash price of such metals.
Accessory Items. Items such as holders, tubes, coin flips, and apparel.
Processed Items. Precious metals that have been processed by third parties into items that are valued on more than their precious metal content, such as statues or colorized coins.
Sales taxes in New York are calculated at checkout on the JM Bullion website based on (1) the taxability of products sold by JM Bullion in New York set forth above, and (2) the specific tax rates established by the taxing jurisdiction of the delivery address in New York.
JM Bullion began collecting sales taxes in New York on March 1, 2019. Our sales tax license number in New York is 46-1785757.
If you are a New York-based reseller and wish to file a Reseller Certificate with JM Bullion, please download the New York Reseller Certificate form here. Once you have filled out this form, either email it to support@jmbullion.com; or mail it to JM Bullion, Inc., 11700 Preston Road, Suite 660153, Dallas, TX 75230. Once we receive your completed Reseller Certificate, we will enter it into our system, and you will not be charged sales taxes on future orders as long as your Reseller Certificate remains valid and in force.
PLEASE NOTE: THE ABOVE IS NOT A COMPREHENSIVE DESCRIPTION OF SALES TAX LAWS AND REQUIREMENTS IN THE STATE OF NEW YORK. IT IS ONLY INTENDED TO PROVIDE THE READER WITH A BRIEF OVERVIEW OF THOSE SALES TAX LAWS AND REQUIREMENTS CURRENTLY IN EFFECT IN THE STATE OF NEW YORK THAT RELATE TO THE READER’S TRANSACTIONS WITH JM BULLION. IF YOU WOULD LIKE TO RESEARCH THE SALES TAX LAWS AND REQUIREMENTS IN THE STATE OF NEW YORK, WE SUGGEST YOU VISIT THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE LOCATED AT HTTPS://WWW.TAX.NY.GOV/.
It can't. Ironic that the final straw was brought on by the Supreme Court and not a decade of mismanagement.
The real bix is not paying sales but rather collecting it, reporting it, and paying it back before its late to avoid penalties and fees. They will shut your six down in a hurry if you fall behind and at the very least put a tax lien on your company and require several thousand bond. But, now I'm realizing maybe Ebay will do all that for you since your not actually the entity and they are. Ehh
Whew! Glad I only visit NY.
Think of the auction imbalance. 1885-CC Morgan in MS64 is about a $600 coin. Bidder A has no sales tax requirement in his state and happens to have a 10 x Ebay bucks promotion. Bidder B has to pay 8% sales tax and no Ebay Bucks promotion. That is quite an uphill slope for the unfortunate second bidder to climb.
and there is quite a few
Not really - well over 30 states have some level of exemption for coins and/or currency.
Member ANA, SPMC, SCNA, FUN, CONECA
No, it is a state by state requirement. $100,000 is pretty common for the ones I've seen which is only 100 ounces of gold.
https://nolo.com/legal-encyclopedia/50-state-guide-internet-sales-tax-laws.html
It is NOT a million dollars.
And this is not terribly new. NY State (for example) dealers have had this issue in state forever.
A. This is far from the final straw, no matter what effect it has on the miniscule portion of eBay sales that are coin/bullion related.
B. eBay's sales continue to grow every year.
C. Amazon and all other retailers have the same issue as eBay, so this does not unduly impact eBay relative to their competitors.
D. This fake news of yours is tiresome. eBay is doing just fine as demonstrated by sales and revenue. And you do yourself and everyone else here a disservice with this continued falsehood.
eBay sales year-over-year as reported as of March 31, 2019 were 5.93% higher than March 31, 2018
eBay profits year-over-year as reported as of March 31, 2019 were 5.63% higher than 2018.
https://macrotrends.net/stocks/charts/EBAY/ebay/revenue
Coins and Bullion are like 1% of eBay business. And if you live in a state that has a bullion tax YOU ARE PAYING IT NOW within the state and have been paying it for as many years as your state had a sales tax.
!) II live in NY and bought a $1600+ gold 1 oz coin. E-Bay says I must pay the tax. No exemption. Why? The big online dealers tell me it's an E-Bay issue. They said they wouldn't charge the tax.
2)As a very small seller, if I sell to a NJ customer through E-Bay the customer must pay the sales tax since all of E-Bays NJ sales are combined (even though I sold only 1 coin).
That's my understanding of the new laws?
Actually, ebay is correct. NY State does not exempt numismatic purchases only bullion. Unless there is $1600 in gold in that coin, it is taxable in NY.
Yes, all marketplaces, amazon or ebay, have pooled sales. The States aren't dumb when raising money.
State taxes on out of state purchases is nothing new. In the past states relied on their constituents to comply with existing law and file/pay taxes on out of state (to include on-line) purchases. When they realized it was not working and they were losing valuable revenue to tax cheats they got more aggressive. The result was the Supreme Court siding with them in South Dakota v. Wayfair.
Latest ebay info on individual states
No Way Out: Stimulus and Money Printing Are the Only Path Left
Remarkable how long K-Mart and GM fumbled and stumbled along with crappy management...then bankruptcy came knocking and the apologists and the rubes dropped their jaws and said duh what...what happened.
I would contact your state revenue department and verify from them that eBay is properly collecting taxes on items that they should be collecting taxes for and not collecting taxes on items that are exempt from taxation in your state.
I'm in NY State. Only bullion purchases - NOT collector coins - over $1000 are exempt in NY.
More fake news. No one was at all surprised by GM or Kmart bankruptcies. The debt issues were well known. Their stocks had been punished for years. Kmart, as the retailer, showed shrinking sales for over a decade.
Other than your own personal biased opinion, could you point me to one metric that even shows a problem at eBay much less imminent death?
Do a simple poll on the forum and ask members whether their Ebay sales have increased of decreased over the last decade. Also inquire as to haw many have thrown in the towel.
Ebay and the Edsel will have similar fates.
Even IF that were true - mine are up, by the way- that's a coins only problem. And coins are a couple percent of ebay business. And, as the numbers I already posted for you show, ebay's business and profit continue to grow. You don't need a poll, you just prefer to believe your made up facts rather than the actual Wall Street numbers.
I guess Amazon is doomed also since they have the same sales tax hurdle and an even higher cost structure for sellers. But, no, you like amazon, so you think they are doing just fine. Which they are.... except for coins, which they haven't been competitive in since the Zshops disappeared 15+ years ago.
You're mad at ebay because you don't feel you can sell there anymore. Fine. But that's personal not reasonable and it doesn't give you the right to make up things completely contrary to the facts. Even if ebay ceases to be a coin marketplace completely, they will continue to be profitable and continue to exist because that is NOT there core business.
It took awhile for eBay to "get it right" and they were collecting ST that they shouldn't have collected. So if one wants to avoid having to file with their state revenue dept to refund improperly collected ST, then check with them to make sure that eBay has "gotten it right" and don't buy anything via eBay until it is.
My ebay sales increase year over year.
Last year I had a huge increase in ebay sales and this year looks to be much better
I am ALWAYS bidder A. Make that bidder type AA.
Resale License so no tax. I maximize all ebay promotions usually by negotiating a lower price on an item before I use the 10% off.
Use ebay to build your business.
Does eBay give you a periodic total of the ST that they've collected on your behalf?
As of now, I collect the Ca state sales tax and remit it.
It's all new, but I do not think ebay is holding tax collected in California for me.
Coinstartled is sorta like Chicken Little..................................
Enjoy.
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Ebay: Taxes and import charges
Sellers' tax responsibilities
You are responsible for paying all fees and taxes associated with using eBay as an eBay seller. For more information on eBay's tax policy and your obligations, see our Tax policy and User Agreement.
Your tax-related responsibilities may include:
Paying sales tax on eBay sales
Paying income tax on eBay sales
Informing overseas buyers about import charges
The Supreme Court ruled in favor of South Dakota - opens in new window or tab in June 2018, which removed the requirement that certain retailers have a physical presence in a state in order for that state to impose sales tax obligations on retailers. Regardless of where you're physically located, if you do business in certain states, those states may require you to collect applicable taxes on your transactions.
For more information on these new tax requirements, we recommend that you consult with your tax advisor. If you do not have a tax advisor, you may want to reach out to Avalara - opens in new window or tab and/or TaxJar - opens in new window or tab.
Charging sales tax on eBay sales
If you're required to charge sales tax, you can set up a tax table and apply it to your listings. We'll then add the tax to the buyer's total at checkout. You're responsible for paying the sales tax to the appropriate authority.
Contact a tax professional to determine whether you need to charge sales tax on your eBay sales, or if you have questions about any other taxes. We can't provide tax advice or guarantee that our sales tax features meet all tax requirements.
https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121&ul_ref=https%3A%2F%2Frover.ebay.com%2Frover%2F1%2F711-53200-19255-0%2F1%3Ficep_ff3%3D2%26pub%3D5574933636%26toolid%3D10001%26campid%3D5337487965%26customid%3D%26mpre%3Dhttps%253A%252F%252Fwww%252Eebay%252Ecom%252Fhelp%252Fselling%252Ffees-credits-invoices%252Ftaxes-import-charges%253Fid%253D4121%26srcrot%3D711-53200-19255-0%26rvr_id%3D1999076466344%26rvr_ts%3D323ae94916b0ac3c4672cbfbffeef543
They don't give you anything. You can see the amount paid on each transaction, but I don't see a way to see it as a running total.
By the way, I haven't looked that hard. It's not on my account page, it's not on the monthly statement. I really just don't care.
I wonder if you can see it on your PayPal account. After all, they must collect it and remit it to eBay
FYI
Beginning October 1, 2019, eBay will collect sales tax on applicable transactions for buyers in:
Arizona, California, Colorado, Maine, Maryland, Massachusetts, Nevada, North Dakota, South Carolina, Texas & Utah. For states that we are collecting tax, you do not need to take any action.
https://community.ebay.com/t5/Announcements/eBay-to-Collect-amp-Remit-Internet-Sales-Tax-for-Additional/ba-p/30241858
I have been selling on e bay for about 20 years now, this will be my worse sales year of them all unless I sell a bunch these last 3 months
eBay’s stock is near all time highs so it will be interesting to see if this hurts them.
As mentioned, eBay is just following the law. If people want it to be changed, they need to lobby their state legislators.
Finally, more taxes to auto pay. All is good!
A bit of humor on this fine Friday!
Sothe Dakota vs Wayfair
Since eBay does substantial business in these states, so they are required to collect the tax. Small businesses however are exempt.
Supreme Court
Judgment VACATED and case REMANDED. Kennedy, J., delivered the opinion of the Court, in which Thomas, Ginsburg, Alito, and Gorsuch, JJ., joined. Thomas, J., and Gorsuch, J., filed concurring opinions. Roberts, C. J., filed a dissenting opinion, in which Breyer, Sotomayor, and Kagan, JJ., joined.
Blame it on Ginsburg.
I'm just about exactly the same as last year. I have fewer transactions, but my dollar volume is the same and my profit is higher. That's largely because I've been migrating to more expensive material.
I really don't think it changes the equation too much. Amazon charges tax. All the big auction houses have to charge tax. The local B&M will charge it. There's not a lot of ways to avoid it.
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I still think it's funny ebay is taxing folks who buy from me in Australia!
LOL. It's all in where the buyer is located. The EU does the same thing to people in Europe who buy from me in the States. Some combination of import duties and VAT.