Ebay Sales Tax on Everything Now?
Well, it appears eBay is now charging sales tax on everything (including items from out-of-state sellers). I live in WA and just got hit up for sales tax from a CA Seller. I tried eBay's "Buy It Now" for 8 different out of state sellers, and all 8 were showing sales tax.
Perhaps this has already been discussed, but I did not realize every purchase (regardless of seller's locale) would be taxed in 2019. In my case, the tax amount varies, but averages just above 10%. Is anybody else experiencing this same thing? |
I just bought and paid for some cards (a few minutes ago) and didn't see any tax from an out of state (to me) seller.
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Interesting....
I wonder how they are targeting the people who must pay the tax. My actual purchase + the 8 items I previewed ALL wanted to charge sales tax in excess of 10%. :mad: |
I think it has to do with your state. I noticed when I listed stuff that two states (WA and MN I think) were assessing sales tax on my listings if sold to their residents even though I am in CA. You might check with your state's board of equalization.
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January- Washington Minnesota February- Iowa April- Connecticut May- New Jersey July- Alabama Oklahoma Pennsylvania I’m sure other states will subsequently follow. But that’s as far as eBay would say for the time-being. Bummer :( |
You would think that eBay would notify all of its sellers and buyers just what to expect. If it wasn't for this board, I would never have heard a single word about it.
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As a test, I went to checkout with a few random things in my cart from a couple of different states (with FL and NC, I believe), and only the ones from California hammered me with tax.
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So you must live in CA.
Enjoy the out-of-state purchases while you still can! |
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Don't get me wrong, I'm all for paying taxes when it makes sense....
I understand paying sales tax on NEW things, but for used items and hobby collectibles that are not new, it just doesn't make sense. What could happen is you could buy something on ebay (taxes collected), sell it (taxes collected), the person that buys it from you could sell it (taxes collected). When does it stop. Basically it's a tax for selling anything. Where I live there are things that are tax exempt, for example FOOD. Why can't there be exemptions for USED crap? :confused: What this amounts to is being taxed on ANYTHING that is purchased, even if taxes had been paid on it before. In my book, that's bullshittt. :mad: If it's collecting taxes on hobby related materials that is NEW (for example, card pages or holders, etc) then hit me up on taxes, I'm happy to pay them.:o Buy something on Amazon or ebay that's new, TAX it. :o Buy a frigging baseball collectible that is not new, then leave it the PHUC alone. :mad: Someone needs to start a virtual/internet "Boston Tea Party". :( |
Ahhh. This explains the mystery charge to my PP account. The other day I bought a PC for $7.75/dlvd. The charge showed as $7.75, but then there was a wierd separate mystery charge of $.78, which is WA sales tax (10.1%). I guess the party's over. Tax in HA, now tax on eBay...soon tax everywhere.
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Didn't California propose charging tax on every text message? So, who collects the eBay tax and then is responsible for paying it? Please don't tell me the seller.
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So as a collector and not a business if I sell something in one of the state's you said do I collect the tax and then have to pay it on a tax form at tax time with my personal taxes? If so looks like I won't be selling anymore and most casual collectors won't either.
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Will the tax come from all sellers or just the ones over a certain dollar/item amount per year?
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So will Ebay handle the paperwork of getting the tax number for me? And filing all the forms which have varying deadlines depending on overall sales? Or do they collect and send me the tax, which I have no right to collect and essentially no way to pay to the state as there's no resale number to apply the payment to. The first way pretty much wrecks Ebays claim to be "just a venue" The second basically forces casual sellers to break state law. |
Also, to be entirely correct, ours is a sales and use tax, so if I buy from another state, and Ebay forces me to pay their sales tax, then I'm technically required to pay my states use tax as well. (which has always been true, but I don't know anyone who actually pays that)
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https://www.ebay.com/help/selling/fe...harges?id=4121
seems like some of the states exempt sellers from collecting sales tax if sales to that state are less than $10,000. At least the first two were that way (Minnesota & Washington). |
Do you have economic nexus in California?
Effective April 1, 2019, California considers retailers who make more than $100,000 in taxable annual sales or conduct more than 200 transactions annually to have economic nexus. This means the state considers these sellers are now obligated to collect sales tax from buyers in that state. I always thought you had to be in business to collect sales tax. Guess that's why the states are putting dollar thresholds. Sufficient nexus if $100k or higher...that makes sense...stinks still though. |
Per eBay for marketplace responsibility tax states: “Once eBay starts to collect tax in the above states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting and remitting sales tax”
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How many cards do you have to sell each year to qualify as a "dealer" and sales tax exemption. May give you an incentive to buy/sell some cards just to qualify.
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Like starting any small business? |
In CA you just have to register to get a resale permit. But, if you get into the system two facts apply:
1: You have to file a sales tax return every year or more frequently if the state says to; and 2: You have to track your untaxed buys and remit use tax. It isn't just a free sales tax pass: if you abuse the exemption and you are caught, you will have trouble. |
As this goes nationwide, I'll be interested to see how this affects eBay sales. Seems like a sneaky rollout on eBay's part. At some point buyers will catch on. The question is will they care or will they start factoring it in a la the juice in an AH.
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eBay is handling all of the collection and remittance of the sales tax..but, how do they know what is taxed and not taxed in each of these states...my game used jerseys are clothing, and, clothing is not taxed in many states...how do they exclude collection of sales tax for certain items?
I live in a state where clothing is tax free...any game used jerseys I buy, wherever they are from, should not be taxed... |
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It could be a great deal for both eBay and the States. |
With the windfall that the states will be receiving as this internet tax net grows wider even beyond ebay, I wonder if they'll reduce the tax rates? :rolleyes:
Rob M |
When I ordered my ebay shipping supplies and paid for them with my quarterly ebay supplies coupon, I was charged sales tax. This quarterly coupon does not cover the sales tax (as indicated in t/c), so I had to use $12 of my ebay bucks to get my "free" ebay s/h supplies. What is weird is I have paid for multiple other things since January 1st, including within my own state, and have not been charged any sales tax anywhere except here. The supplies mailed out of KY, so I am not sure why this state is charging sales tax now. Perhaps this supplies vendor is large enough they are collecting for my home state. Hopefully ebay will change the terms on this coupon to allow it to cover the sales tax on my "free" stuff.
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They used to send me quarterly coupons through my messages and I haven’t received any in a while. I am going to contact them to find my supply money. Thanks. |
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I have not received a message about the ebay supply coupon in a few years. However, you can access your code by clicking on the "promotions" tab and then clicking on "subscriber discounts". Your code will be found when click on "see details" under the shipping supplies box. |
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Assuming you have an eBay Store subscription, the first item should be a link to your quarterly coupon code for shipping supplies based on your store subscription level. |
Funniest post this year
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We used to get a message from them every quarter when the coupon was available. I hadn’t noticed that it has probably been 6 months since I got supplies. I was assuming they ended the program. They just made it more difficult to cash in on their offering to stores. Thanks for mentioning the supplies. I am going to use my $50 today. Much appreciated. |
I was going to reply to this thread, but when I reached to put a plastic straw in my Diet Dr. Pepper, I was arrested.
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Personally, I can see some great opportunities for new business in sales tax exempt states. One could create a po box type mail center for buyers in high tax states and then mail the item to the subscriber tax free as this is address based.
Here in Detroit there are many businesses that provide po boxes to Canadians looking to avoid tax and excessive shipping on bought goods and no one bats an eye. I am sure the Canadian tax authorities hate it, but they advertise openly. I know people are going to jump on this as working the system, but as I consider sales tax on used goods a sham in excess of skipping tax on on those goods...I couldn't care less. |
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The only real benefit is that the actual cost of shipping is lower - which is still great as I'm probably paying a third of what I used to haha. |
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I'm in Illinois and added an item from CA seller to check what you mentioned here. Did not see sales tax added to invoice.
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If you live in CA and buy a card from a CA seller, you get taxed.
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2 Attachment(s)
Yeah, why let facts get in the way...
Attachment 340479 Red box (added from the actual listing) shows item location as California. I live in California, and like I specifically said, sometimes the tax doesn't show up. Another two CA cards I put in my cart cost around $400 and had tax of $32+ listed... Attachment 340480 |
Without knowing for sure, I would hypothesize that eBay is now adding sales tax for specific states when out-of-state purchases are being shipped to that state (i.e. Use Tax), but is still leaving it up to sellers who reside in those states to collect and remit Sales Tax to their state as before. This would make it appear hit-and-miss for application of sales tax for in-state buyers. Did the Wayfair court ruling that all of this was based on even speak to application of in-state sales tax for internet purchases?
I haven't tested this theory. Just throwing it out there for consideration. |
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