08-09-2022 01:31 PM
Anyone have any recent experience with eBay's handling of tax exemption for merch shipped within CA to a Ca based registered freight forwarder for export? The dealers I have direct dealings with understand this is a non taxable sale as I have no direct contact with the merch AND it leaves the country. You can't get eBay on phone any longer to ask directly. Getting as bad as amazon. TIA
08-09-2022 01:36 PM
If the freight forwarder is located in California, then the buyer will be charged California sales tax. If the buyer wants to avoid paying sales ta, s/he will need to find a freight forwarder located in a state that does not charge sales tax (NH, DE, MT, OR as I recall).
08-09-2022 01:53 PM
That's all east coast. It's going oceanic to pacific. I know the State allows for exemption in these circumstances. Just curious if eBay had a similar understanding.
325.1510 Export Packers. Sales to a foreign purchaser, where delivery is made in California to a separate legal entity set up by the foreign purchaser to act as an export packer, will qualify as exempt within section 6387, provided the other requirements of that section are satisfied. To be considered an export packer within section 6387 and Regulation 1620 (a) (3) (C) (1) (b), it is not necessary for a firm to hold itself out to the public as an export packer. It is sufficient if the purchaser and the packer are separate legal entities and the packer is engaged in the business of export packing for the purchaser.
A vendor qualifies as an export packer within section 6387 if the vendor regularly packs and exports, not only goods he has sold to the foreign purchaser, but also goods sold to the foreign purchaser by other vendors.
08-09-2022 02:02 PM
You need to be aware, though, that in many states the rules are different when it involves marketplace facilitators like eBay. You might want to contact the California Department of Revenue to see if they have updated information about situations like yours.
08-09-2022 02:36 PM
I did contact them. And spoke with a live person and he pointed me to the info I shared. Maybe I didn't explain myself clearly. I understand the law as it relates to this type of transaction and it works fine when it's dealer to dealer. Other CA dealers ship to my forwarder in Hawthorne tax exempt all the time. It's eBay's position on the law I was curious about. Wondering if anyone had personal experience on eBay with. this type transaction. Thanks!
08-09-2022 02:45 PM
The buyer would have to set up an account with a sales tax exemption to use for items sent to his freight forwarder in a state where freight-forwarded purchases are tax exempt.
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