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

[collectingcandymemorabilia]

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

[onceuponatimetoys]

Why is it that most times anyone reply’s on Ebay regarding any topic, that their reply is left in a smartass condescending tone? Why is replying nicely not the norm? 

I ask, because the comments on other sites seem to be 80% nice 20% a - hole yet every time I read off EBay boards its closer to 80% a -hole ~ 

If truly educated you are able to enlighten & educate others without offending. 

[mansons2005]

"If truly educated you are able to enlighten & educate others without offending. "

As an (overly) educated person, I have to agree with you. That said, I also have to admit that I am guilty of sometimes replying in a snarky or sarcastic manner. Why? Probably because so many things that get posted are so wrong, ill informed, or silly that a sensible answer is not possible. I try my best to assist with actual problems and issues and to explain how this (convoluted) system works, without letting my personal opinion sway my responses.

But when someone spreads rumors or conjecture as truth, or asks why eBay is still allowing MAIL to come from foreign countries, or why they aren't allowed to sell counterfeit Rolex watches even if they state they are counterfeits I find it difficult to hold my tongue.

So this is a two way street - the result of which is that nonsense is usually answered with nonsense.

[rummly]

The Supreme Court in the 80s ruled that unless you have a warehouse You do not have a business. But now that the internet is upon us, they found they're losing millions in taxes, so They are forcing the states Into collecting taxes. Shipping is not a product. If I buy something from any other company on the internet, I do not pay tax on shipping. I may pay tax for the product. But never shipping. When I called customer service, And asked why, first they tried to blame it on PayPal. Then they told me to check with my tax man. I said eBay was collecting the tax not PayPal. When he could not answer my question, he just hung up on me how rude!

[mansons2005]

I fear that there are a large number of states that have deemed shipping as taxable. While you are correct that it is not product, it is a service, just as a haircut, or dry cleaning, are services. You may wish to look up the DOR for your state and see what is involved with the NEW laws - some things have changed.

To ensure the best results regarding taxes, eBay recommends the following:

Make sure your shipping zip code includes the +4 so eBay calculates the correct rate. Otherwise they default to the highest rate in the general area (The 5 digit zip code may encompass overlaps within a city or county).

The taxable status of an item is based on the first category the item is listed in. For example, if you purchase pants listed in sporting goods instead of clothing then tax will be charged even in clothing exempt tax states.

[bryangoat]

I have no problem whatsoever with paying sales tax. The monies generated go to pay for the infrastructure and services that we all take for granted. However, I DO have a problem with paying taxes on shipping costs. Even though it only amounts to a few cents per transaction, it adds up. I, personally, do not feel that shipping costs should be taxed.

[7606dennis]

---

@bryangoat wrote:

I have no problem whatsoever with paying sales tax. The monies generated go to pay for the infrastructure and services that we all take for granted. However, I DO have a problem with paying taxes on shipping costs. Even though it only amounts to a few cents per transaction, it adds up. I, personally, do not feel that shipping costs should be taxed.

---

Good News & Bad News!  Some states agree with you and do not consider shipping to be a taxable service while others do.  The bad news for you is that evidently your state is one of those that does.

[stresshacker]

Sorta correct. 

Packaging and handling is USE which often is taxed via Sales & Use Taxes.

US Postal service Postage is NOT TAXABLE.

eBAY is collecting sales tax on postage which is ILLEGAL.

Then PayPal is collecting a fee on the TAX Collected, which is NOT LEGAL EITHER.

[eburtonlab]

@stresshacker 

US Postal service Postage is NOT TAXABLE.

While postage might not be taxable in certain situations such as buying postage at the post office, in other situations where the cost of postage is part of a taxable transaction, postage is taxable.

For information about how your state of Texas treats shipping charges, see here:

https://blog.taxjar.com/shipping-taxable-texas/

[nobody*s_perfect]

---

@stresshacker wrote: ... eBAY is collecting sales tax on postage which is ILLEGAL....

---

eBay does not collect sales tax on postage, such as when you purchase a shipping label through eBay.   The buyer's payment is a payment to YOU, and part of that payment might be used by you to purchase postage.

[dabayley]

So, what you are saying is that ebay wants what it wants and will get it.

Right?

[dabayley]

Again, It sounds like your saying we should all be quite...

[txquickseller]

If I paid taxes on the product prior to selling, why tax me again on the same product? I've already done my part to these **bleep** schools and parks.

[eburtonlab]

@txquickseller 

If I paid taxes on the product prior to selling, why tax me again on the same product?

You are not being taxed again; the buyer is being taxed.

Every time the item changes hands, the state will want a piece of the action. That is how sales taxes work. Until recently, it was not feasible for the state to go after most non-retail sales, and so the responsibility was placed on the buyer to self report those purchases when filing taxes. Since Wayfair v. South Dakota, many states have changed the law so that online marketplaces such as eBay now bear the burden of collecting those taxes, since it much easier to go after eBay than individual buyers.

[7606dennis]

---

@txquickseller wrote:
If I paid taxes on the product prior to selling, why tax me again on the same product? I've already done my part to these **bleep** schools and parks.

---

No one is taxing you on the sale.  It is the buyer who is being taxed.  However, you are subject to paying income tax on the income derived from the sale.  I would suggest that you keep accurate records so that you only have to pay income tax on the profit from the sale.

[cathom-8403]

This doesn't answer the question about tax on top of shipping!!!