Internet Tax Question

[Gusturd]

I recently decided to make some space in the man cave and sell a few items on ebay. I was surprised when one of my items sold (to a buyer in Washington state) and 10% state tax was automatically added to the invoice. It was hard coded and could not be removed. I'm used to paying sales tax, but not sure what to do with it when it's being paid to me. What am I supposed to do with the ten bucks? Does it even come to me or straight to the Govt? The odds of me selling any more items in the state of Washington are pretty slim as I'm only selling about a dozen items. Can anyone clear this up for me?

[Gusturd]

And not for nothing but 10% sales tax! WOW.

[swarmee]

You didn't say, but I'm guessing you were selling on eBay? If so, eBay handles getting the sales tax to the state the buyer lives in. You don't have to do anything.

[Yastrzemski Sports]

http://www.net54baseball.com/showthread.php?t=264176

[vintagetoppsguy]

Originally Posted by swarmee

You didn't say, but I'm guessing you were selling on eBay?

Originally Posted by Gusturd

I recently decided to make some space in the man cave and sell a few items on ebay.

[swarmee]

Ah, so he did say. Point stands.

[Gusturd]

Thank you for the responses and the link. Read the other thread in it's entirety. Sounds pretty convoluted at this point with more questions than answers but good to know, Ebay is handling.

One question I didn't see answered. At one point does a guy selling off some of his junk (like me) become a dealer responsible for collecting and submitting sales tax?

[Buythatcard]

Originally Posted by swarmee

You didn't say, but I'm guessing you were selling on eBay? If so, eBay handles getting the sales tax to the state the buyer lives in. You don't have to do anything.

I have been collecting NJ Sales tax since I started selling on eBay 15 years ago. I then have to pay those taxes to NJ every 3 months.
I haven't heard anything about eBay handling the sales tax for you. Is that something they do for some states because they are certainly not doing it in NJ? Atleast, not yet.

[swarmee]

It seems like you're talking about in-state sales tax. I think the OP was talking about the new out-of-state use tax. So my points were about that.

[gzman]

Originally Posted by Buythatcard

I have been collecting NJ Sales tax since I started selling on eBay 15 years ago. I then have to pay those taxes to NJ every 3 months.
I haven't heard anything about eBay handling the sales tax for you. Is that something they do for some states because they are certainly not doing it in NJ? Atleast, not yet.

eBay started collecting tax in NJ on May 1-but, they roll out this new policy without certain critical details...Apparel is not taxed in NJ...I sell MLB game jerseys...I have a customer in NJ who is being charged tax by eBay for their purchase of game jerseys...these items are not taxable in the state..I don't have them set up to collect tax for in state buyers..yet, the eBay system does it..if I buy a jersey from an out of state seller, eBay adds tax to the sale..since I boy for resale, I did file for and was awarded tax exempt status..but, sure seems like eBay doesn't have the details all together and may be setting themselves up for a nice class action lawsuit..

[Gusturd]

Update: I got notification of payment received and went about the task of shipping the item. When I went to print out the shipping label, I see the buyer no longer lives in Washington. His address is now in California.

However, he included a note asking me to ship the item to an address in Washington. I informed him I'd only ship to the registered address in Ebay. We'll see what happens.

Anyone else think this is suspicious?

[conor912]

Originally Posted by Gusturd

And not for nothing but 10% sales tax! WOW.

Yeah, I live in WA. We have no state income tax, but they find plenty of other ways to make it up

[mrmopar]

I am from WA and have to pay the 10%. I was under the impression that the seller might see the amount, but doesn't actually receive it. Supposedly ebay collects for and pays the tax. My PP transactions are split since they started this with separate line items for the tax and the item/shipping.