Sales tax

[stickerxchange]

I noticed eBay is no longer charging sales tax when a customer orders an item. Not even in my own state? I asked eBay about it, and one customer service rep said it's a software glitch. When nothing was done, I contacted them again and was told not to worry about it. They will take responsibility. Meanwhile my customers are not paying sales tax. Anyone else notice this?

[toomuchstuffagain35]

Perhaps your buyers were in states that don't charge ST?

[mam98031]

@stickerxchange 

You may be viewing things incorrectly as Ebay is required by LAW to collect and remit sales tax according to the various state laws when buyers make a purchase.  It is the buyer that has to pay the sales tax and the rate is based on where the BUYER is having the item shipped.

Sales tax charged to the buyer does show up on the Order for each item sold.

[stickerxchange]

Thank you for responding. However no sales tax is being charged everywhere including my home state of California which I report to quarterly. 

[mam98031]

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@stickerxchange wrote:

Thank you for responding. However no sales tax is being charged everywhere including my home state of California which I report to quarterly. 

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Sales tax is NOT driven by where you are located, it never has been.

Sales tax is based on where the product is being shipped to.  So if the buyer has the item shipped to Washington, then the buyer will pay Washington sales tax.  If they have it ship to Oregon, there will be no sales tax because Oregon doesn't have sales tax.

[stickerxchange]

it used to? And tax is being charged on my other store PosterXchange. It shows the tax and states {ebay collected)

[ckimodog]

@stickerxchange 

The following states do not charge sales tax:

Alaska, Delaware, Montana, New Hampshire, and Oregon.

If you buyer was from any one of those states, that's why. 

Happy Selling

[lacemaker3]

@stickerxchange 

eBay determines if an item is taxable or not from the category, and the sales tax law in the buyer's state. As far as I can see, none of the listings in your category are charging sales tax. I checked with addresses in several states that charge sales tax.

https://www.ebay.com/b/Collectible-Vehicle-Decals-Stickers/14029/bn_3046779

devon@ebay  elizabeth@ebay 

Could you check to see if it is correct, that vehicle decals and stickers are not taxable items in most states, or is this a programming mistake?

[stickerxchange]

Thank you all for your response. However, I think I'm just going to do what eBay recommended. Don't worry about it. Cheers

[mam98031]

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@stickerxchange wrote:

it used to? And tax is being charged on my other store PosterXchange. It shows the tax and states {ebay collected)

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Sales tax has NEVER been based on where the Seller was shipping from.  

Now back when we collected and remitted our own sales taxes [pre 2019/2020], then if we had a buyer that had their item shipped an address WITHIN the seller shipped from, we charged that buyer Sales Tax.  So back then we collected and remitted sales tax on sales that happened within our own states if sales tax was due.

Now Ebay does it.

When I file with our States Dept of Revenue for my income for whatever period.  I still have to declare how much I sold inside of the state I'm in.  Then I take the full deduction for it because Ebay collected and remitted the sales tax.  The net result is I don't owe anything for sales tax to my state.

Rules may be different in how this gets reported, if it gets reported.  But sellers can NOT collect sales tax from buyers at all on Ebay or any other site that is similar to Ebay where they process the money.  

And YES your report would show that Ebay collected the tax.  Ebay is also legally responsible to remit it to the appropriate state.

[stickerxchange]

It was mentioned by one of the customer service reps that it could be the reason. However Iv'e been selling for almost 20 years and this only started beginning of the year. They mentioned it might be a policy change?

[soh.maryl]

You do know, as an experienced seller, that the state sales tax charged to the buyer on his purchase is calculated based upon the delivery address of the buyer, right?  

[mam98031]

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@stickerxchange wrote:

Thank you all for your response. However, I think I'm just going to do what eBay recommended. Don't worry about it. Cheers

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Personally I think that is very bad advice.  You need to understand it.  It is important as a seller than you understand how MFLs [Marketplace Facilitator Laws] work.  The old head in the sand method is usually not a good one.

[ckimodog]

@stickerxchange 

Okie dokie!  Cheers to you as well!!  

[soh.maryl]

"A policy change"? Charging state sales tax for the applicable sales, that is, states that have a state sales tax, is a LAW, and is not optional.  See how well informed CS reps are!