Ebay charging sales tax on coin sale in Texas to Texas. There are no sales tax on coins in Texas.

[kenscorner]

Ebay charged my buyer sales tax on a coin he purchased. Texas does NOT charge sales tax on coins, or silver.

How can buyer get his money back from ebay ?

[simba6]

They can't get if from eBay.  They have to contact their state's tax office and get the forms for a refund of sales tax collected in error.  They submit that with their state income tax or an amended tax form.

[dbfolks166mt]

     Something either you or the buyer or both need to contact eBay about. This probably happens more than most buyers or sellers realize given the 10,000+ individual state sales tax laws. 

[gamersbaystore]

Yes, your state does in fact charge sales taxes for purchases online. I see no exemptions for coins.

"Texas purchasers and sellers may think they can save money by not paying tax when buying or selling on the internet, but those transactions are subject to Texas sales and use tax."

"Marketplace providers that are engaged in business in Texas must collect and remit tax on all sales by marketplace sellers."

https://comptroller.texas.gov/taxes/publications/94-171.php

[12345jamesstamps]

Good catch...

[jbrt]

No, they should not collect tax. From the Texas Administrative Code, Title 34, Part 1, Chapter 3, Subchapter O, RULE §3.336:

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

  (1) Bullion--Gold, silver, or platinum that is formed into uniform shapes and quantities such as ingots, bars, or plates, with uniform content and purity, as are suitable for or customarily used in the purchase, sale, storage, transfer, and delivery of bulk or wholesale transactions in gold, silver, or platinum.

  (2) Currency--The coin and paper money of the United States or another country that is designated as legal tender and circulates and is customarily used and accepted as a medium of exchange in the country of issuance.

  (3) Numismatic coin--A coin that is not used as a medium of exchange or whose price depends more on characteristics such as beauty, rarity, and condition than on its metal content or its face value.

(b) Taxability of sales of gold, silver, or numismatic coins, and gold, silver, or platinum bullion. Effective October 1, 2013, the sale of gold, silver, or numismatic coins or of gold, silver, or platinum bullion is exempted from Texas sales and use tax.

  (1) This exemption does not include gold, silver, or numismatic coins, or gold, silver, or platinum bullion in the form of jewelry or other items of adornment.

  (2) The purchase of a commodity contract for items exempt under this subsection is not a taxable transaction.

(c) Taxability of currency exchanges. The exchange of currency for another form of currency based on an exchange rate is not a taxable transaction if the invoice, receipt, billing, sales slip or ticket, or contract issued to the customer identifies the exchange rate.

(d) Taxability of the sale of certain paper money. The sale of paper money that is not currency is taxable as the sale of tangible personal property. Sales or use tax is due on the total sales price of the paper money.

(e) Use of gold, silver, or numismatic coins or gold, silver, or platinum bullion to acquire taxable items. Persons who use gold, silver, or numismatic coins or gold, silver, or platinum bullion to acquire taxable items owe tax on the transaction based on the sales price of the taxable item.

[12345jamesstamps]

"This exemption does not include...numismatic coins(crafted for collecting)....(of or relating to the study oe collecting of coins, tokens, and paper money)

It kind sounds like you are wrong.....sorry

[kenscorner]

see jrbt comment. You are incorrect. No sales tax in Texas on coins.

[ajs_coins_and_alchemy]

@kenscorner 

What's the item # for the listing that was charged tax. 99.999% of the time this is a listing issue (not just category but often issues within the Item Specifics section), but I reviewed your recently sold's and don't see one that stands out as an obvious listing error

[cardxcraft]

.........mis-read

[ajs_coins_and_alchemy]

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@12345jamesstamps wrote:

"This exemption does not include...numismatic coins(crafted for collecting)....(of or relating to the study oe collecting of coins, tokens, and paper money)

It kind sounds like you are wrong.....sorry

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@12345jamesstamps 

..... I'm sorry.... You chopped this sentence completely in half....  I also do not understand where you are pulling your "definitions" from in the parentheses. Are you taking the liberty to insert definitions here? I would be careful about the use of definitions, laws define their own terms very clearly. I do not recognize your definition of Numismatic coins as "crafted for collecting". That is not an accurate definition or not a widely accepted one.

Below, the underlined portion is what you quoted, and the bold section is the key part you dropped....

 This exemption does not include gold, silver, or numismatic coins, or gold, silver, or platinum bullion in the form of jewelry or other items of adornment.

Maybe the syntax including the word "or" confused you .... this translates as "Gold, Silver, Numismatic coins, gold bullion, silver bullion, platinum bullion, in the form of jewelry or other adornments."

I am a bit puzzled overall by this issue, I've seen the issue of Texas sales tax on coins raised a couple times, I'm finally pouring through my orders looking for Texas buyers and I'm finding a lot of TX Sales Tax. I know my items don't have listing issues because I'm extremely careful to ensure tax exemption when applicable, and this is a wide variety of coins I'm seeing taxed on my orders page, so this does seem to either be an issue of eBay or an issue of understanding the law, because I've seen no other instances or complaints about sales tax from buyers.

As I've read the quoted law, most/all coins are tax exempt (including "numismatic" coins). I don't understand what gives.

[sin-n-dex]

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@kenscorner wrote:

Ebay charged my buyer sales tax on a coin he purchased. Texas does NOT charge sales tax on coins, or silver.

How can buyer get his money back from ebay ?

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Can you provide the listing #?

I had this happen a couple of times (US buyers). If I see what category, I can possibly tell you why they got charged (based on my experience selling coins here).

C.

[sin-n-dex]

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@gamersbaystore wrote:

Yes, your state does in fact charge sales taxes for purchases online. I see no exemptions for coins.

"Texas purchasers and sellers may think they can save money by not paying tax when buying or selling on the internet, but those transactions are subject to Texas sales and use tax."

"Marketplace providers that are engaged in business in Texas must collect and remit tax on all sales by marketplace sellers."

https://comptroller.texas.gov/taxes/publications/94-171.php

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^^this^^

sounds like the reason they were charged tax.

I do happen to know certain coin categories charge tax and some don't...

C.

[monroe67]

"Ebay charged my buyer sales tax on a coin he purchased. Texas does NOT charge sales tax on coins, or silver.

How can buyer get his money back from ebay ?"

The buyer cannot get a refund of his sales tax from eBay.   The best way is for the buyer to google getting sales tax refunds from his Texas state government.  

(BTW, if several other posters, including sin-n-dex, are correct, that online transactions for purchasing coins are in fact subject to Texas state sales taxes, then Texas is unlikely to refund the sales taxes on this transaction -- for the simple reason that eBay was following Texas laws on taxation, and eBay's collection of sales tax was proper.)

This post reminded me of several posts from a few years ago when eBay's collection of sales tax, as a Marketplace Facilitator, was a new process.  
In addition to buyers, quite a few sellers felt it was Wrong.  (Although it was then and still is The Law for eBay to collect sales taxes on, well, sales that are done through eBay.) 

Some sellers chose to handle this "problem" (in their eyes) by simply refunding the amount of sales taxes to their buyers.  Those refunds, of course, came from the seller's profits and were in essence more like gifts to their buyers.  

I'm not telling the OP what to do, of course.  Just relaying some "solutions" that other sellers said they had done in past years, for this sales taxation "problem."  

[12345jamesstamps]

I took it from the internet but didn't want to write a whole book.

numismatic ...definition in dictionary..."adjective...of or relating to the study or collection of coins, tokens, and paper money"...not my words.

"Numismatics is the study of coins and other currency units and is usually associated with he appraisal and collection of rare coins."...not my words