I was charged sales tax on a ebay purchase

[v8vega]

I have been before when the seller was in CA but this guy is in Wisconsin. Is this new on eBay?

[Rufus T. Firefly]

I have been before when the seller was in CA but this guy is in Wisconsin. Is this new on eBay?

No. Been going on for most of the year. eBay collects sales tax on every sale for every state that they are required to do so. Standard practice now.

And, unlike the mythology that the sellers have to collect sales tax - no. eBay handles it all for you.

Now if you're an eBay store, I have no idea how things work, but for the average little guy selling a few things here and there, it's business as usual.

[E7]

Thank the US Supreme Court. State of South Dakota vs Wayfair 5-4 decision

that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state.

I think we're getting hosed. Ebay isn't the seller, they (opinion) facilitate the sale. Should be does the Ebay SELLER do 200 sales or 1K. We'll have to start boycotting trips tp Mt. Rushmore. NEXT CASE!

[Rufus T. Firefly]

Thank the US Supreme Court. State of South Dakota vs Wayfair 5-4 decision

that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state.

I think we're getting hosed. Ebay isn't the seller, they (opinion) facilitate the sale. Should be does the Ebay SELLER do 200 sales or 1K.

While I agree to a point, 200 sales is easy to gt to in a year and then a lot of work dealing with taxes in whatever state you live in (ok, everyone move to Delaware, ). But, eBay is in a position to do it for you since they have all the records.

We'll have to start boycotting trips tp Mt. Rushmore.

Yup. That'll work.

[robert.]

Be happy there was no fine for not paying on past purchases. buyers are responsible for tax on out of state purchases. Think of how you would feel if they went retroactive. The state of New Jersey did this on tobacco sales from indan reservations. I not sure what the final outcome was.

[Rufus T. Firefly]

Be happy there was no fine for not paying on past purchases. buyers are responsible for tax on out of state purchases. Think of how you would feel if they went retroactive.

Would have been years unraveling the records.

The state of New Jersey did this on tobacco sales from indan reservations. I not sure what the final outcome was.

Probably lost.

[E7]

We'll have to start boycotting trips tp Mt. Rushmore.

Yup. That'll work.[/quote]

I dunno....been doing it for 70 some odd years and it doesn't seem to have
affected them!

[Rufus T. Firefly]

We'll have to start boycotting trips tp Mt. Rushmore.

Yup. That'll work.

I dunno....been doing it for 70 some odd years and it doesn't seem to have
affected them! [/quote]

But now you've announced the purpose of your absence - makes all the difference in protesting something.

[healey36]

EBay seems to have gone all in...I've even gotten charged tax on international transactions (not sure how they are calculating that). Amazon has tightened up as well, but not nearly to the extent that eBay has (but they caveat it by saying the tax responsibility ultimately lies with the seller). As a seller, no effing way I'm filing quarterly sales/use tax returns in 50 states for a handful of transactions.

[Rufus T. Firefly]

EBay seems to have gone all in...I've even gotten charged tax on international transactions (not sure how they are calculating that).

It's based on your state sales tax rate.

Amazon has tightened up as well, but not nearly to the extent that eBay has (but they caveat it by saying the tax responsibility ultimately lies with the seller). As a seller, no effing way I'm filing quarterly sales/use tax returns in 50 states for a handful of transactions.

It's only the for the state that that you sell from and eBay is already taking care of it for you...

[healey36]

It's only the for the state that that you sell from and eBay is already taking care of it for you...

I'm not sure that's correct for direct sales (i.e. those that you make outside of eBay and/or Amazon). My interpretation is that if I sell from my location in Maryland directly to somebody in South Dakota, then South Dakota is looking for me to bill/collect/remit sales tax to them. I wouldn't be collecting/remitting sales tax to Maryland for out-of-state sales.

For the big boys, that's the way it works...I'm presuming it would work the same for a small business once you cross over the 200 transactions or the $100K of activity in a state.

[Rufus T. Firefly]

It's only the for the state that that you sell from and eBay is already taking care of it for you...

I'm not sure that's correct for direct sales (i.e. those that you make outside of eBay and/or Amazon).

Ok, I was only referring to eBay. Direct sales are something else entirely.

How other stuff works is very dependent on the states that are involved. 1/2 the time it seems that if there are 2 states int he mix that both want their sales tax collected.

Whatever, it's going to seriously limit my internet sales.

[Fred Brenek]

Yeah, I'm late to this party.

But, I just figured out the state sales tax being collected includes "shipping". I'm not sure the sales tax on this is 100% legal.

Essentially, if the seller is shipping USPS, states cannot tax Federal mail. Not sure about UPS or FedEx either. I know that when I ship via both of these carriers directly, I am NOT CHARGED SALES TAX.

I would really like to know if eBay is remitting ALL sales tax collected for each state.

Fred

[Rufus T. Firefly]

Yeah, I'm late to this party.

But, I just figured out the state sales tax being collected includes "shipping". I'm not sure the sales tax on this is 100% legal.

Did notice that too. They were tapping that as well for their 13% fee Not sure but then as it seems all too many pad their sales with excess shipping costs, then that's actually income skimmed off the top.....but those honest folk, it's a penalty.

I would really like to know if eBay is remitting ALL sales tax collected for each state.

One wonders.

[robert.]

I have been selling on facebook for the last 3 months. Buying things there also. It is much easier then eBay. I know most here hate facebook. Sometimes you need to bite the bullet. Sales tax is often collected when it should not be. In those cases. The buyer must filled out several forms to reclaim it. You need cut through red tape for each sale. It is impossible for a seller to know every state local or foreign tax requirement. They change almost by the hour these days. You'll find that after applying once for a sales tax refund. You'll never do it again for a measly few bucks.