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Replies: 23 / Views: 3,480 |
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Pillar of the Community
 United States
7955 Posts |
I just made a sale to a WA customer and completely missed this. I do see on the Order Details the ebay statement about collecting sales tax where required by law, but I could not turn up evidence of an amount they tried to collect om this transaction. I do agree with kushanshah that it's only a matter of time for this to show up everywhere.
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CCF Advertiser
  United States
1306 Posts |
tdziemia;
Only when you physically send the invoice do you have a chance to see the grayed out sales tax box showing what the buyer is seeing. Otherwise you have no record this was charged and are left to wonder what the buyer is talking about if they just paid without you sending an invoice separately. Here is how it looks again only when you send an invoice: Subtotal: $XX.XX Shipping and handling via USPS First Class Package: $X.XX WA Sales tax: $X.XX
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Pillar of the Community
 United States
1949 Posts |
It is extraordinarily frustrating that they are ignoring individual state exemptions. They are soon set to begin applying it across the board in my home state of CT, where there is a state exemption on coins.
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CCF Advertiser
  United States
1306 Posts |
jdmern; All online sales into your state will be taxed and ebay USA will do this automatically. OK, but I always spend the extra 10 cents a listing to also list in ebay UK. And when you look at one of my listings from that portal there is no mention of state sales tax in the shipping section. And there are how many ebay country specific sites? I suspect buyers from states like Washington will just hunt for more and more Chinese sites or foreign sites etc not doing this and it will take many years for the system to find a way to collect on all online sales. Now if PayPal collected there would be a money maker as most people don't want to try a new banking system and trust PayPal. I find it interesting they did not because if you make the case PayPal does not actually sell anything so they are not the vendor who has to collect, is it not also true ebay does not actually sell anything so they are not the vendor to collect from?
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Pillar of the Community
United States
2023 Posts |
The bit about "...if they exceed $100,000 in annual retail sales to or 200 transactions..." looks like such a mess, especially if they preemptively withhold the tax. This early in the year, a good number of sellers may not know whether it will apply one way or the other for a long time. Smaller sellers probably won't hit it at all. Larger sellers who stop selling abruptly mid-year could be left hanging, having paid tax incorrectly. Doing the math, $100k or 200 transactions? To be equivalent, that would be $50 each. Sell a bunch of common-date silver Roosevelt dimes individually? Tax. Sell just your PR55 1879 $4 Stella? No tax. Not that I'd want to pay sales tax for a Stella, and California exempts tax on coin sales over $1500 anyway, but it puts a lot of extra burden (or rather, relieves burden) where it doesn't necessarily belong. Should have been all or nothing.
Edited by Alpha2814 01/07/2019 12:05 pm
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Pillar of the Community
 United States
1949 Posts |
I have no issue whatsoever with ebay following the law in taxing states where the law requires the tax to be paid. However, ebay carte blanche applying taxes that don't exist on certain items is foolish to me both as a buyer and seller. Many states have different levels of taxation based on what type of product an item is. A good example of this is the excise taxes applied to cigarettes, which are taxed at an entirely different rate than a loaf of bread. What ebay is doing is akin to 7/11 saying 'well we sell both cigarettes and loaves of bread, so we are going to charge taxes based off of the cigarette rate.'
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CCF Advertiser
  United States
1306 Posts |
Alpha2814 I read that $100,000 rule as the site sold over $100,000 to Washington state in the past year. The ebay general site has done this, not any individual dealer. So ebay is being treated as the vendor who is selling, not the sellers. If you look back to just 2017 posts on the ebay community there were people swearing up and down ebay would never collect taxes as they are just a platform not the vendor. And all those posts were wrong, I just work for ebay they are the vendor. I am working in their shop. So if I sell an item someone got hurt with etc it is ebay's deep pockets and I am off the hook?
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Pillar of the Community
United States
2023 Posts |
I'm not a seller at the moment (I have in the past), but ebay's policy is pretty clear -- they are not the seller. Quote:You are responsible for paying all fees and taxes associated with using ebay as an ebay seller. ... The Supreme Court ruled in favor of South Dakota in June 2018, which removed the requirement that certain retailers have a physical presence in a state in order for that state to impose sales tax obligations on retailers. Regardless of where you're physically located, if you do business in certain states, those states may require you to collect applicable taxes on your transactions.
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CCF Advertiser
  United States
1306 Posts |
Alpha2814; Then we have circled back to me being the seller and ebay providing the service to me of forced collection of taxes. But I only sold 80 grand in coins this year and certainly very little of that went to any one particular state. So the law as written in Washington is, applying to me: --->Remote seller retail sales tax registration thresholds (For TOTAL annual sales in Washington) Less than $10,000 199 or less transactions, You do not need to register or collect tax. Assuming no Physical Presence in Washington State<--- So why is this what an invoice to Washington State Looks like? And I can't edit this. But the law says I don't collect this for the above reason. VF+! Julia Mamaea, Augusta, Silver Denarius Rome, 226 AD. IVLIA MAMAEA AVG 1 $22.01 $22.01 Shipping and handling: $2.00 Sales tax: 8.90% Order summary Subtotal (1 item)$22.01 Shipping via USPS First Class Package$2.00 Sales tax:$2.14 Estimated total $26.15
Edited by louisvillekyshop 01/07/2019 6:37 pm
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Pillar of the Community
United States
2023 Posts |
Then I refer you first to Kushanshah's post, quoting "Effective October 1, 2018, out-of-state businesses without a physical presence in Washington have substantial nexus with the state if they exceed $100,000 in annual retail sales to or 200 transactions with Washington consumers in the current or preceding year. Businesses who meet either threshold must register their business with the State, and collect and submit retail sales tax on their sales delivered to customers in Washington." Doesn't sound like you qualify, which is why I said this was a mess and ebay seems to be paying taxes as though they are the seller even though their own help pages say it's your responsibility. This isn't my area at all. As a buyer, I'm interested in the tax implications to me. I've avoided some purchases from California-based sellers for this reason, and it appears I may not longer have that option or it's going to be more complicated to figure out for all of us. I'll point to ebay's other advice: "Our full policy below explains how and when ebay charges applicable taxes, and provides additional guidance on your tax obligations, but we recommend you talk with a tax professional if you have any questions."
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CCF Advertiser
  United States
1306 Posts |
This just is not stopping although there is no legal reason it is as I posted in above postings: Listing from tonight to a buyer in Washington State: I'll ask again, you have to wonder if the buyers will be refunded?
Good Plus to Fine: PUPIENUS. 238 AD. Æ Sestertius, Victory holding Wreath! $212.50 Shipping and handling:$ 2.00 Sales tax: 8.50% Washington State Order summary Subtotal (1 item)$212.50 Shipping via USPS First Class Package$2.00 Sales tax:$18.23 Discount$0.00 Estimated total $232.73
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Pillar of the Community
United States
1554 Posts |
I just spent more than an hour calculating my 4th quarter 2018 sales tax return, which included writing a check to my state department of revenue for the full 42 cents I collected in sales tax for in-state sales. Now I will use a 50 cent stamp to mail that 42 cent check to the state. Wouldn't bother me a bit if ebay did it for me. Not a bit.
Edited by Kushanshah 01/10/2019 01:11 am
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Pillar of the Community
 United States
5675 Posts |
It wouldn't bother me if ebay collected sales taxes correctly, but it sounds like they are collecting sales tax indiscriminately in some states, ignoring sales thresholds and the exemptions for coins. If they broaden this to other states over the next couple years, I hope they can refine their systems to take into account the rules of each state.
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Pillar of the Community
United States
1554 Posts |
Quote: but it sounds like they are collecting sales tax indiscriminately in some states, ignoring sales thresholds and the exemptions for coins Agreed. Sounds like a class-action lawsuit waiting to happen.
Edited by Kushanshah 01/10/2019 01:40 am
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CCF Advertiser
  United States
1306 Posts |
OK been a few months since we had this discussion but thought I'd update you, New York just went live with their 8% sales tax. First invoice I have sent out from ebay with it and as I said in the past, it is greyed out, the only time the seller sees it is if they look at the sent invoice and we can't remove and we don't actually collect, ebay does. We never see it paid, in the payment details. A full 8% on everything in New York. Going to be a tough summer for those who buy Amazon all the time I imagine in the big apple. Septimius Severus Silver Denarius. Rome, AD 202-210. FVNDATOR PACIS: 1 $46.98 $46.98 Subtotal (1 item)$46.98 Shipping via USPS First Class Package$2.00 Sales tax:$4.35 Discount$0.00 Estimated total $53.33
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Replies: 23 / Views: 3,480 |
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