Sales Tax notice

[vinwood01]

Happy New Year,

So I just saw this messge about tax being charged on an item.  I've looked through my emails from eBay and don't see anything related to a change.  Is this something new with the new year?  Do I need to remit to the state of WA?  The learn more link was pretty vague.

Thanks

BC

[slippinjimmy · Accepted solution]

https://community.ebay.com/t5/Announcements/UPDATE-Ongoing-Changes-in-How-Internet-Sales-Tax-May-Imp...

[csbbct]

Also, as of 1/1/19 you should see in everyone's listing now under the "Shipping and Payments" tab:

Taxes

Sales tax may apply when shipping to: Minnesota , Washington

[cfgdr]

Due to Marketplace Facilitator Tax laws that have been passed in multiple states, eBay is now collecting sales tax in WA and MN, with other states to be added later this year.  I have not yet had any sales to either state. 

For Amazon sales, we have to give each item available for sale a tax code, so that Amazon can determine if the item is taxable for the various states.  eBay does not have that option, you can only mark if the item is taxable or not.  Since I currently only collect sales tax in my home state, I mark each item whether it is taxable or not in my state. But, some things that are not taxable in my state, are taxable in other states. 

Can someone please tell me how eBay is handling sales of items that the state considers exempt?  For example, in many states food and medications are exempt from sales tax.  Is eBay just collecting sales tax on ALL sales to WA and MN, or are they determining for each item if it is tax exempt or not in each state? 

Thx

[basspig]

This should not be applied to used items, where the tax has already been paid, otherwise the government is double/triple/quadruple-dipping.

[dolldesigns4u]

I sell used items and Ebay is automatically charging sales tax to my buyer invoices.

[berserkerplanet]

>>I sell used items and Ebay is automatically charging sales tax to my buyer invoices.

That would be because used items are taxed the same as new items in most places.

Any problem with that should be directed at your state/county/city/legislature.

[lucky376]

Hi,  eBay is now adding  sales tax for the state the buyer is in.

I have made purchases with the same sellers on eBay to see if I would be charged tax by them on their sites, they are not The purchase of one coin on eBay added 14.99 separate change on pay pal. This seems unfair all the way around. All state that charge tax will get in on the act. The other question is who holds that money and for how long. is eBay making money off this?

[soh.maryl]

So you've never bought a used car? 

[mansons2005]

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@lucky376 wrote:

Hi,  eBay is now adding  sales tax for the state the buyer is in.

I have made purchases with the same sellers on eBay to see if I would be charged tax by them on their sites, they are not The purchase of one coin on eBay added 14.99 separate change on pay pal. This seems unfair all the way around. All state that charge tax will get in on the act. The other question is who holds that money and for how long. is eBay making money off this?

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eBay holds the money until they remit it it quarterly. Just as the local grocery store and Target do. I don't understand why people are getting so upset over a process that has been in operation for a least a few centuries. The only thing "new" about it is who the laws apply to.

[seriously-folks]

I agree!

food in Wisconsin (other than restaurants) is not taxed, yet I just got taxed - a huge surprise - on some jerky I bought.

it didn’t say anything about tax being added (not on the app!), so when my $27 item turned into an almost $30 item, it was highly annoying! I wouldn’t even have bought it had I known what the REAL cost was! I’m **bleep** off.

[7606dennis]

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@basspig wrote:

This should not be applied to used items, where the tax has already been paid, otherwise the government is double/triple/quadruple-dipping.

---

Actually, that would depend upon the wording of the particular state's sales/use tax laws.  Most consider used goods taxable. 

It would be nice if that antique in the antique store couldn't be taxed because it was taxed when sold over a hundred years ago, but I don't believe that is the case.   Of course, it would be nice if used cars couldn't be taxed once they were no longer new cars.  That too isn't likely to be the case, in my opinion.

[thumper300zx]

It seems to me, though my opinion will change nothing, that only the PROFIT eBAY makes on the sale should be taxed unless the seller is operating as an ongoing retail entity. Sellers doing 'garage sale' or 'personal item' sales should not be taxed purchases. Of course, you will have sellers claiming they aren't a business when they are, but for example, I collect sports jerseys and soccer balls as a hobby. I have paid considerable money for these items and owned them for (sometimes) decades, and when I want to sell them, I'm not 'flipping' them to make money. I'm just selling them because I'm done wanting to own them.

You don't have to be a profitable business to be required to take in sales tax. While sales tax could potentially affect your profitability (the price you set would affect buyer decision, along with the added sales tax), the sales tax itself is supposed to be 'pass-thru'. It never touches your revenue. It's between the buyer and state.

You can generate PLENTY of money for the state while losing tons of money in retail sales. But, you probably won't be around long.

If you sell something for a profit that is a personal item, I still don't know if that falls under sales-taxable. Unless you are selling some SUPER expensive stuff (eg. fine art), you should not have to be concerned with capital gains tax.

Here are two good articles about it -- the question is really what becomes 'regular'...and also, as times change, what defines a business or a collectible, etc.

https://www.kiplinger.com/article/taxes/T055-C032-S014-selling-your-stuff-the-tax-dimension.html

https://www.avalara.com/us/en/blog/2018/12/are-used-items-taxable.html

[kh-vince]

Hi everyone,

Due to the length of time that has passed since this thread began, we have locked it from future replies. If this is still an issue that warrants discussion, don't hesitate to begin a new thread here.

Thanks.