Options
Thoughts on cancelling an eBay winning auction bid when sales tax is involved?
U1chicago
Posts: 5,769 ✭✭✭✭✭
This came up in a recent thread and I wanted to see where the general opinion stands.
We mostly agree that backing out after winning an auction isn't correct but what about when erroneous sales tax is involved?
Fox example, coins are not taxed in your state so you bid and win something at $1,500. While paying for the item, eBay adds a 10% sales tax ($150) that you did not expect to see (because the item should not be taxed). The seller did not make any mistakes (item is listed in the correct category) and they have no way to remove the tax. Is it ok to cancel or should you pay and then try to sort out the tax with eBay (or your state tax body if you get no help from eBay)?
3
Comments
In the past couple of years I’ve had eBay incorrectly charge me tax on coins about half a dozen times out of maybe 30 total non-paper currency numismatic purchases. In each case I’ve called eBay and have managed to get the issue resolved. While mildly annoying, the longest amount of time I’ve had to spend on the phone was maybe 10 minutes and within a few weeks at the most the additional charge for the tax was removed.
I would try to contact eBay first to resolve the matter instead of canceling the transaction and potentially punishing the seller when they didn’t do anything wrong.
While it is unfortunate for the seller, I wouldn't blame the buyer. I had a buyer do that and I didn't block him. While there are avenues through eBay and/or your state taxing authority, I don't blame a buyer for not wanting to deal with that.
I agree, while it is a pain in the *** ... I wouldn't cancel ... I'd get on the phone with eBay. I have, and like @jeffas1974 said, it always got resolved.
“We are only their care-takers,” he posed, “if we take good care of them, then centuries from now they may still be here … ”
Todd - BHNC #242
Would the dollar amount change your mind?
Meaning would you think differently if it was an extra $1.50 on a $15 item vs $150 on a $1,500 item?
There is no sales tax on coins in Washington State, end of story.
If I was the seller and the tax was collected incorrectly, I would leave it up to buyer. If it is what the buyer wants I would cancel the sale and relist. Why create an unsatisfied customer. However, the buyer should be made aware that they can get the tax refunded by contacting ebay, although it is a pain and can take awhile.
Philippians 4:4-7
This happened to me before. I did check out/complete the sale because the additional tax was not too much.
My state doesn't charge a sales tax on coins or bullion, but eBay has charged it in the past.
I opened case with eBay and after emailing (a copy of the state code), calling two times, and finally giving up.
Then about 3 months after the sale, my refund came.
Good topic. Thanks
Sugar magnolia blossoms blooming, heads all empty and I don't care ...
You might think it's the end of the story but that does not mean the eBay system agrees with you.
I had this very question arise in one of my ebay listings last week. This customer and I both reside in California. In California, we have an sales tax exemption on bullion purchases over $2000 (just raised from $1500 on January 1st). My customer wanted to know how ebay would handle the tax charges - would it be listed on the transaction and refunded later or not charged at all.
My experience as a buyer has been no tax was charged up front for tax exempt purchases. She contacted ebay and received a different answer:
This customer won the auction and the final price exceeded $2000. As with my experience, she was not charged tax as a part of the transaction.
My point with this story is the communication which occurred between the buyer, ebay and me. She went through the effort to ensure she was an educated (even if wrongly so) buyer and was willing to endure the rebate process (which was never needed). This type of proactive communication can prevent unnecessary cancellations and/or returns.
Tim
That's what I said too.
My state doesn't charge a sales tax on coins or bullion, but eBay has charged it in the past.
I opened case with eBay and after emailing (a copy of the state code), calling two times, and finally giving up.
Then about 3 months after the sale, my refund came.
Sugar magnolia blossoms blooming, heads all empty and I don't care ...
@pointfivezero thanks! You helped me learn that the California exemption has increased to $2,000. I had someone ask me earlier this year why a $1,500 item was showing tax and we were both under the impression it was still $1,500 (I'm not in California so did not know of the change-I should have looked it up).
Like others, when I was erroneously charged tax in the past, I just chatted with ebay CS and they processed a refund without much fuss or effort.
My pleasure, @U1chicago:
Tim
This has come up for me several times recently and most recently last night. I was purchasing several 1995 Olympic Track Silver dollars for graduation gifts. The first one was going to charge tax so I canceled. I ordered 3 more from 3 different sellers and tax didn't appear on any of the three.
Lafayette Grading Set
I sold 640 $ E-bay charge 720$ After I call in behavior of the buyer, they remove. It is because the computer add automatically. If it is same state, we talk different.
NEVER ARGUE WITH AN IDIOT.
FIRST THEY WILL DRAG YOU DOWN TO THEIR LEVEL.
THEN, THEY WILL BEAT YOU WITH EXPERIENCE.
MARK TWAIN
Not really. I mean, you could argue $1.50 is no big deal so eat it. You could also argue that $150 us enough to make it worth the trouble to deal with eBay in the refund of the tax. But in either case, it is an ebay problem not a buyer problem.
I don't think that (location) has anything to do with it.
The location of the buyer is the issue for the Wayfair sales tax laws. If your state charges internet sales tax, you will be charged no matter where the seller is located.
Did someone say tax?
https://youtu.be/gMdcE8jdz70
Taxes everywhere.... Really discouraging to tabulate all the taxes we pay. Cheers, RickO
The answer: pay and then try to sort out the tax with eBay
Ebay has become terrible at processing tax refunds over the last 9 months, but it will eventually get fixed. No reason to let a coin go for a technicality like this. Ebay has explained to me that the reason the tax is accidentally charged is due to the seller incorrectly filling out the item specifics area in the listing. I haven’t figured out what box in that section is causing the hiccup, but it’s an interesting reason for the problem to occur.
Wrong. The BUYERS location has EVERYTHING to do with it. South Dakota vs. Wayfair.
As a marketplace, eBay easily passes the thresholds for reporting and collecting in every jurisdiction. If silviosi sold direct they might not, but selling through the marketplace, the tax must be collected and remitted.
ANA 50 year/Life Member (now "Emeritus")
It depends on how long you can do without the $150. I've had sales tax charged in error before, and have been refunded every time, but sometimes it takes a while and numerous phone calls. If i didn't want to, or couldn't let the money sit unavailable to me, I'd consider backing out, if i wasn't worried about it I'd go ahead and pay, and immediately contact eBay about the erroneous sales tax. Sometimes if they're slow about a refund it helps to mention the words "fraud", and "fraudulently charged" in conversation.
I'm not sure how many lines of code are in the programming on the site, but fail to jump through every single hoop correctly and there's errors.
There's an exception to when I don't block buyers. eBay helps make that distinction with their taxing policies. The states don't make life in America easy for eBay. Neither does uncle Slam.