mam98031 • Volunteer Community Member • Buyer/Seller since 1999
I understand that Ebay is now considered a Facilitator in a few states and due to recent tax law changes, Ebay must charge, collect and remit sales tax on what sellers sell on this site to certain states that require it. I get all of that.
I live in one of those states. But what I don't understand is why sales tax was charged to me on something I purchased from a seller in China. I wasn't aware that the tax laws of a state could affect a seller located in a different country.
Or is it just my misunderstanding and the states do have the right to charge sales tax on sales from an international seller? What the heck am I misunderstanding.
I just have a desire to understand.
@imspad wrote:I'm talking about CHINA. There is NO Sales Tax for sales in China. So saying this money is "sales tax" is a fraud, plain and simple. And that "FACT", makes no difference what congress says and is a matter of consumer "common law". They will be sued. They will loose. They will be forced to give all the money collected for foreign countries marketed as "sales tax" but actually defrauded out of the consumer back.
Watch and learn!
No one in China is charging you a tax. The tax you had to pay has NOTHING to do with China. Sales tax has nothing at all to do with where the product originated. It could me China, Australia, Canada, Mexico, or your neighboring state. NONE of that matters. What matters is that you had it delivered into a state that has a Facilitator law in place.
YOUR state representatives passed a law so that ALL marketplaces have to charge and collect for ANY sale of an item that come INTO your state. Period. Sales tax is ALWAYS a tax on the destination of the item. Where it came from does not matter at all.
@imspad wrote:I never said anything about "internet tax".
I'm talking about CHINA. There is NO Sales Tax for sales in China. So saying this money is "sales tax" is a fraud, plain and simple. And that "FACT", makes no difference what congress says and is a matter of consumer "common law". They will be sued. They will loose. They will be forced to give all the money collected for foreign countries marketed as "sales tax" but actually defrauded out of the consumer back.
Watch and learn!
You are absolutely correct. And China is NOT charging or collecting a sales tax from you.
Your STATE has passed a law that REQUIRES Ebay to charge and collect a sales tax for ANY purchase to be delivered to someone in your state. You don't like the law, take it up with your state representatives. They wrote it and enacted it. Not Ebay and certainly not China.
@bonjourami wrote:Yes there is tax for buying from China, if the buyer is buying online and lives in one of the states that is collecting it.
Heck it doesn't even have to be online. How many times have you picked up something at a store that says the item came from China. When you take that item to the cashier, my bet it you have to pay a sales tax on it if one is required in your state, right.
Same thing on the internet. As I know you know!! I just thought I'd post another example.
Clearly you have some misunderstandings about this. Ebay has no choice. Ebay didn't pass these LAWS. Ebay fought hard for years to prevent the start of internet sales taxes. Google it and you will find it to be true.
Ebay has no options here. By law they have to collect sales tax for sales that are delivered to 38 states in the USA. If this is affecting you in your state, you need to contact your state representatives as they are the ones that passed the law to make Ebay have to collect these taxes.
And by the way. It isn't just Ebay that has to charge the sales taxes for 38 states. It is all similar sites. Etsy, Amazon, Etc.
@arkusaj7 wrote:
@mam98031 wrote:
@no_zero369 wrote:Hmmm, what is to stop some "genius" from setting up Tax Tables for all of the jurisdictions that are now requiring sales tax, and then claiming they are exempt under the dollar limits and number of transactions thresholds? Is eBay monitoring that?
They don't need to. Ebay is collecting the Sales tax in the states that currently require it and Ebay will be remitting it to the appropriate states.
The problem is that they're doing it incorrectly. Nothing on eBay that is a used item should be charged sales tax!
The inherent nature of the website implies that absolutely NOTHING on this site is a licensed 'retail purchase' either which inherently implies that even with NEW items paying Sales Tax should be the EXCEPTION not the standard.
The only situation wherein it would be acceptable to collect sales tax is if the following conditions are met:
1) The seller is an eBay store with a Tax ID.
2) The item is New.
3) The store is located in a state which requires tax collection across state lines.
4) The item itself is marked as "not yet taxed" (meaning that it was purchased wholesale, in bulk, buy a business with a Sales Tax ID under which to remit that tax).
5) The buyer does not have other exceptions on file (such as they are a wholesaler, non-profit, etc).
The way taxation is currently setup, eBay is collecting a MASSIVE amount of "fees" under the guise of "Sales Tax" and while they are assuredly remitting those necessary, they are most definitely making a MASSIVE profit.
Once Ebay becomes responsible to collect and remit sales tax due to an MFL being in place, ALL SELLERS are blocked from being able to collect sales tax in those states. You can go to your tax table and try to set up some percentages, but you won't get far. So sellers misbehaving in these regards is highly unlikely.
Ebay is complying with the laws that they are required to comply with. If there are specific things within those laws that you disagree with, then you need to take it up with your state as they wrote the law. Ebay can not change what they are doing simply because some users think they should. So you need to start with your state representatives to get things changed.
Sales tax has NEVER EVER been driven by the origination of the product. Some of the confusion regarding this is because we all call it sales tax, even the states do, but it reality it is Use Tax when it comes from out of state and/or country.
Use tax is a sales tax on purchases made outside one's state of residence for taxable items that will be used, stored or consumed in one's state of residence and on which no tax was collected in the state of purchase.
Your misunderstandings of how this works is very similar to others that have posted on the threads. But it is simply a misunderstanding.
And BTW Ebay is not so short sighted as to break the laws in 38 states in order to make some extra money in the short run. Then be hit with multiple law suits for not complying with the laws and paying all the penalties, interest, court costs and lawyer fees. It is just so silly to think a company would risk there entire company over this.
I know it is easier to blame Ebay for all this but there is no basis in fact for that, simply misunderstanding the MFLs it what is going on. Ebay isn't the only site that charges these taxes. So if Ebay is doing what you suggest, so is Amazon, Etsy, Walmart, Sears, ETC. They are all in on a massive conspiracy to steal from us all.
@finecollections1978 wrote:Same situation here.
Seller in China offered item at a fixed price. PayPal checkout showed exactly that price. Seller did not state that taxes of any kind apply. Notification from eBay that item had shipped showed a different price, now it included tax.
Who gets this tax? China? My State? If my state does, then why doesn't every transaction from States in the USA charge tax for the seller's State plus tax for my State. eBay seems to be facilitating in the same way for each sale.
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Note: when double checking the seller's location, in case they are shipping from a USA location, it showed they ship from an international location. The seller is listed as in China/HongKong/Taiwan. Since when did eBay allow sellers to make/post political comments? That is, Taiwan as part of China?
Again, sales tax has NEVER been driven by the products origination. It just doesn't work that way and never has.
Yes the seller's listing did state there may be sales tax, you just didn't notice it. Please see the pic below.
The sales tax will show on the invoice as you prepare to submit payment for the item you purchase.
Ebay will get the money for the sales tax and they will remit it to the appropriate state as the law in that state provides.
Ebay is responsible in 38 states to collect and remit sales tax. I'll provide a link below you will find informative.
https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4
It does NOT matter where in the WORLD the seller it located. It matter to which state the item is shipped to.
