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Why is Ebay charging sales tax on the shipping cost?????

Why is Ebay charging sales tax on the shipping cost????? I thought we were only taxed on the product itself. 

Message 1 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????

I know you are trying to justify retail but not all sellers are a business and not all products are sold in local stores (antiques, vintage collectibles, family heirlooms). Apples to oranges. My point is we should not be taxed on a service that does not originate in our state. 

 

Easy enough?

Message 16 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????


@collectingcandymemorabilia wrote:

I know you are trying to justify retail but not all sellers are a business and not all products are sold in local stores (antiques, vintage collectibles, family heirlooms). Apples to oranges. My point is we should not be taxed on a service that does not originate in our state. 

 

Easy enough?


Any selling on eBay is "business"

Message 17 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????


@collectingcandymemorabilia wrote:

I know you are trying to justify retail but not all sellers are a business and not all products are sold in local stores (antiques, vintage collectibles, family heirlooms). Apples to oranges. My point is we should not be taxed on a service that does not originate in our state. 

 

Easy enough?


And THAT is the crux of the matter. Your state is basically "catching" you buying from out of state and they don't like loosing the tax revenue. So they have finally found a legal way to collect taxes on anything bought from out of state. And some states found that it is legal now to tax the shipping as well, so now they actually increased the revenue they were not getting in the past. Buy a $10 item locally and you pay 10.80 with tax. Buy it online at $10 plus $10 shipping and it will cost you $11.60 - thus they double the revenue. They do not particularly care if the item can not be sourced locally - its not a "necessity" so you pay tax on it. (though in some states, even necessities are taxed).

 

This remedies the old, and mostly ignored law that residents who purchased items out of state report those purchases and pay the appropriate taxes to your state when they file a state income tax return (even though it is not income per se, its just that the tax return was the easy place to include it - I'm not talking about income here). Most people are not even aware that they had this obligation, let alone were avoiding it and the states were taking a big loss.

 

For the record, I am neither condemning nor condoning this tax stuff - it just is what it is.......................

Message 18 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????

Governments can pass any law they see fit. Imminent domain works well for them but morally speaking it is just a tool to line their pockets. I believe in paying taxes but government entities have a way of taxing anything and everything. Taxing an out of state purchase is questionable but taxing the shipping is just plain wrong.

Legalized theft would be more fitting

Message 19 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????




@buyselljack2016 wrote:

@collectingcandymemorabilia wrote:

I know you are trying to justify retail but not all sellers are a business and not all products are sold in local stores (antiques, vintage collectibles, family heirlooms). Apples to oranges. My point is we should not be taxed on a service that does not originate in our state. 

 

Easy enough?


Any selling on eBay is "business"


I'm always astonished that anyone who sees kids selling lemonade at a curbside stand understands that the kids are 'learning about business.'  However, for some reason they can't make the jump from that to the fact that eBay selling IS a business be it a full-time life supporting business or a hobby business.

 

I guess that is why we see so many sellers with their knickers in a twist over returns?  They haven't made the mental jump to being 'in business" and as such have a business plan that is incomplete.

 

The reason anyone pays tax on shipping is the same reason sellers pay a "tax" to eBay for the total cost of the sale: product cost and shipping cost.  But I doubt buyers would understand that either?  Smiley LOL

Message 20 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????

sellers pay a "tax" to eBay for the total cost of the sale: product cost and shipping cost. 

 

Are you referring to "sellers" fee that is paid to Ebay? If so you are incorrect.

Message 21 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????

Sure sounds illegal doesn't it?

 

Nothing eBay does to puff up the bottom line surprises me.  

 

Money is King at feeBay.

Message 22 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????


@rocklen60c7 wrote:

Sure sounds illegal doesn't it?

 

Nothing eBay does to puff up the bottom line surprises me.  

 

Money is King at feeBay.


This isn't about eBay. It is about sales taxes being collected, and remitted to the states that require it to be done.

Message 23 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????

ccount summary September 16 - October 15 Pacific Time

Previous balance$15.12
Invoice payment received Sep 30 - Thank you-$15.12

New fees   

Final value fees$12.40
Subtotal$12.40
Total due$12.40

  Do you have a question about the total amount due? We’re here to help!     You have set up PayPal as your automatic payment method. Your invoice amount will be automatically deducted from your PayPal account between October 30, 2019 and November 1, 2019. The amount deducted may vary based on recent payments or credits.   - Make a onetime payment for selling fees - Change your payment method for selling fees Promotional savings  (View details)

Insertion fees-$4.90

 

Total Saved**-$4.90
Message 24 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????

Hmm, no sellers tax on this sale. Am I missing something?????????????

Message 25 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????

I completely understand your question and I think can also answer it without all the noise 🙂

eBay and other sites I sell on (all collecting sales tax now too) have to charge on the total sale because some sellers (not so many anymore but back in the day) would have a super cheap buy price with a high shipping price to avoid paying seller fees.

In the old days (I miss them, lol!) shady sellers took sites for a lot of money as sites like eBay only took their sellers fees from the sale price.

Sites and eBay caught on and had to charge flat final value fee's to the entire sale to catch the cheaters.

Now with free shipping and flat FVF's for sale plus shipping, they do it with the taxes too. If they don't, the dirty sellers will once again put a low sale price with a high shipping price to lure in tax evaders who figure that out as well.

The few ruin it for the masses.

Death and taxes, the older I get the more taxed and dead I get, I want a do 'over 🙂
Message 26 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????

If you are asking about you (the seller) paying a service tax to eBay/your state based on your final value fees, no there is no tax................YET. eBay is aware (they mentioned it someplace) that some states are considering it. Some countries do it already, and yes, eBay collects and remits it internationally.
Message 27 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????

A final value fee on shipping charge........thats just another  scam but at the end of the day without Ebay my collection would not exist. Some things i guess are a necessary evil. 

Message 28 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????


@collectingcandymemorabilia wrote:

Why is Ebay charging sales tax on the shipping cost????? I thought we were only taxed on the product itself. 


Because some states consider shipping to be a taxable service.  Depending upon the state you reside in, it may be taxable.

"It is an intelligent man that is aware of his own ignorance."
Message 29 of 79
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Re: Why is Ebay charging sales tax on the shipping cost?????


@obsoletecandy wrote:

Look, I  am disputing tax on shipping not product.......


Check with your state's taxing agency and see if they deem shipping to be taxable.  If so and you wish to dispute it, contact your state legislators.

"It is an intelligent man that is aware of his own ignorance."
Message 30 of 79
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