eBay vault

[BobC]

Originally Posted by icollectDCsports

Catching up on the vault issue. Does the location of goods determine which state's sales tax is implicated instead of the location of the parties to the transaction? Thank you.

In the case of an online/internet sale, the sales tax is charged on where the purchased item is being shipped to, which is supposedly where the item is to be used/kept. In other words, where the transfer of ownership normally occurs.

You buy something online from a local card shop one state over, and if applicable, they are supposed to charge you sales tax for the state they sent the card to, because that is supposedly where you actually take possession of your card when you open your mail. But let's say you are on a trip in this other state and you happened to walk into this same LCS and buy this card in person and take it with you. Now the LCS will charge you sales tax based on the state they are located in, because that is where you bought and took actual possession of the card. See the difference?

This doesn't work like this for really big ticket items like cars though. Even if you drive to another state to pay for and pick up a car, the sales tax will be based on where the car ends up being registered at and ultimately kept.