Why Is Ebay Suddenly Charging Sale Tax On Coins

Well, it took a couple weeks but I got the refunds for the tax payments that I called ebay about

Now I need to file for 6 more "manual corrections"

@Freespeech57 - in my state the same thing was going on with ebay after changes to our tax laws in 2021. After getting absolutely zero help from ebay, I ended up reporting it to my state's Department of Finance and Administration, and within 30 minutes I had the name and email of a person at ebay which a tax auditor at the DFA provided. That ebay contact was always responsive to my inquiries and even took care of quickly getting me refunds of tax I'd been improperly charged (usually within a few days).

It still took far too long, and I had to get back with the ebay contact at least 3 times because the fixes weren't implemented across all tax-exempted areas of numismatic items, but in the end it was completely corrected.

The department is called different things state to state; I think in Ohio it's just called the Department of Taxation.

The Federal Government of Canada has required as of July 1st for all online retailers to charge taxes according to what province you the seller are in . I sell on ebay and have recently noticed a lot more buyers not paying for the coin with the only way to deal with it is to resend an invoice , and message the buyer. When I was talking to an ebay rep about this issue they admitted that since the policy was put in place they are getting a lot more delinquent buyers. When they buy a coin and get the invoice they weren't expecting the tax applied because it wasn't there pre July . I end up cancelling the order and blocking the buyer. Secondly ebay applies the taxes to Bullion which is tax free in Canada .I reported this and they said they were working on a solution . A 13% tax applied in my case in Ontario is of course causing bidders that are aware to bid less to account for the tax. *** Political Commentary removed by the Staff ***

Every now and again this pops up for me. I'm in Texas, so tax on coins is prohibited. Having bought hundreds of auctions (maybe close to 1000) over the last 5 years alone, I would say I've had tax show up on coins less than 10 times. As far as I can remember, every single time the tax would eventually disappear if I waited a few days before paying. A few days ago I had tax added to a $350 purchase, about $30 in taxes. I called ebay and after a bit of going back and forth and telling multiple reps the same story, I finally had someone just tell me to wait a few days and see if it disappears and if it doesn't then they have already started the process to refund the tax to me. It didn't disappear after a couple of days. Meanwhile, the auction was a steal of a deal so I just decided to go ahead and pay before the seller changes their mind or something. We'll see how long that $30 refund takes. Now, tonight I had yet another purchase show up with tax added. This time the sale price was about $20, so the tax was only $2. Again, it was a mis-attribution worth a lot more than I paid, so I wasn't going to hold it up over $2. Twice in one week though is pretty concerning. I buy and sell a lot of coins every month, so adding close to 10% in taxes to that is no small fee. I'm going to have serious issues if this continues. Again, we'll see. Not looking good though.

I live in Louisiana, and am required to pay tax on every purchase or sale.

I think ebay is definitely over charging.

They should be charging tax on behalf of the State only on the cost of their services, not the whole product.
Sales tax on the coin itself has already been paid by the previous owner in acquiring the coin in the first instance.

@Hondo

Depending on where you're at in Louisiana, it might be worth making the drive to shows in DFW or Houston if you're going to make large purchases.