Net54baseball.com Forums - What the Tax????!!!!!

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Quote:

Originally Posted by buymycards (Post 1921684)

I set up at card shows. I have a Wisconsin sellers permit and I pay sales taxes on everything that I sell at shows. I don't charge the customers, so I effectively lose 5.5% on every sale at a show. This has been going on for years. Nothing new. The Wisconsin Department of Revenue has been known to show up at shows to check the dealers to see if they have a sellers permit.

I also pay Federal and State taxes on my net profit at the end of the year, along with around 15% for Medicare and Social Security. When I purchase a collection I have to get if for a really low price in order to make a profit.

Most of my fellow dealers don't have a permit and they don't pay taxes on their sales. That is why most dealers don't accept debit or credit cards, or PayPal or checks. They deal in cash so they can avoid taxes.

It is hard for me to believe that paying sales tax on a purchases is a big hardship for most buyers, and I wouldn't let 5% stop me from buying something for my collection. The people who are cancelling purchases because of the sales tax are flippers, and the 5% eats into their profit.

Rick

Rick,

I agree with you 100%.

I also pay my taxes at the end of the year on every single item that I sell. It's all part of running any legit business.
I know sellers who do business on eBay that never record their online earnings. I believe that will catch up with them one day.

Buyers need to understand that it's not the Seller's or eBay's fault for collecting any tax. Eventually, it will be mandatory for all online sales. It's just a matter of time, when the online AH's start collecting too.
Like death, you can't avoid it.

Complaining about paying taxes is 243 years too late.
But complaints about how the tax payments are used is timeless.

Ebay sent out the sales tax email in conjunction with Paypal in regards to the new states taxable as of Oct. 1. In the email it said that ebay and paypal would handle the tax and the seller would have to do nothing.

My question is this...... If you are paying for an item on the BST or anywhere else(not ebay) and using regular paypal (not-F/F), is that transanction now going to be taxed by paypal as a business transaction, tax collected and forwarded to the applicable state.

I believe the answer is yes, but have had no dealing either as a buyer or seller this month to test the theory. I have a feeling paypal is going to track the 30 odd states that enacted the law and tax those transactions automatically as well(some vendors had added tax prior).

Further to add, perhaps only the buyer will see it and the seller won't be able to as they don't pay it, ebay/paypal does.

??

Also....

Isn't ebay over collecting the taxes? If I sell to someone in South Dakota, ebay will collect the sales tax. But if I don't make 200 sales or sell over $100K to South Dakota, does ebay reimburse that/those buyers? I highly doubt it. Or is ebay considered the 'vendor' in this case? Inquiring minds want to know.

How could Paypal know if the seller already charged sales tax on their own and the buyer is already paying it? That would be double taxation right?

Quote:

Originally Posted by CobbSpikedMe (Post 1922382)

How could Paypal know if the seller already charged sales tax on their own and the buyer is already paying it? That would be double taxation right?

My 'guess' would be that ebay means they will request the total amount (including sales tax) to paypal and paypal will ensure the total (including sales tax) is deducted from the buyer's account. Paypal only 'knows' since that is the total requested by ebay. Otherwise, it's BAU from the paypal viewpoint.

Quote:

Originally Posted by tschock (Post 1922384)

Hi Taylor,

I meant when someone sells something off eBay (like on the BST) and the buyer uses PayPal to pay. If the seller charged sales tax then PayPal would have no idea it was included in the amount the buyer transfers.

Quote:

Originally Posted by CobbSpikedMe (Post 1922403)

Andy,

I think ebay's statement with reference to paypal is only in regards to their interaction with paypal and not a comment on paypal's policy in general. I doubt paypal itself will be in the 'tax assessing' game since they are only processing money transfer requests, but I could be wrong.

Quote:

Originally Posted by sb1 (Post 1922377)

Taylor,

I was referencing Scott's post above regarding PayPal collecting tax on transactions that aren't PPFF like from the BST. That's where I think it could be a problem if they collected sales tax on all transactions.

I can see how paypal could view every non-FF transaction as a taxable sale and apply the states sales tax to the $ amount. It is called goods and services...

Quote:

Originally Posted by sb1 (Post 1922651)

I can see how paypal could view every non-FF transaction as a taxable sale and apply the states sales tax to the $ amount. It is called goods and services...

A ) The assumption would have to be that any request coming directly from the owner of the paypal account that is not a PPFF request would not have already had tax applied to it.
B ) For example, if a small business that doesn't directly link their request to paypal, but accepts paypal funds and has already applied the tax to the invoice sent to me, then if paypal adheres to A above, they are doubly taxing the invoice.

We are all speculating here though on what paypal may or may not do.

I still have the question/concern though of ebay over collecting taxes if I truly am the vendor and haven't met that state's specific threshold of sales.