collecting tax

[lectrician1]

buyer coming from california to nevada paying cash for an item. Do i have to collect the tax?

[katzrul15]

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@lectrician1 wrote:

To whom do I pay the tax after I collect it?

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You can send it to me.  I *promise* it will get to the right place.  😎  

[go-bad-chicken]

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@silverstatetreasureboxes wrote:

@go-bad-chicken. You have a valid point, I get the OP lives in Vegas, the buyer probably lives in L.A. area about 6 hrs away and looks like the item is a very heavy industrial thingy. OP states tax was charge to CA ok makes sense as the buyer lives there but the actual transaction is going to be in NV...hmmmm what happens if this buyer states he doesn't want to pay for tax? Interesting indeed.

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@lectrician1 @silverstatetreasureboxes 

IMO eBay needs to be more clear and concise about these types of transactions considering the fact that a lot of business is done on eBay using the local pickup option.

The 2 information pages that eBay currently has for local pickup style transactions do not mention sales tax at all. That needs to be addressed by eBay.

Here are links to the 2 local pickup information pages that eBay currently provides.

This one is for sellers:

https://www.ebay.com/help/selling/shipping-items/setting-shipping-options/local-pickup?id=4181&st=12... 

This one is for buyers:

https://www.ebay.com/help/buying/postage-delivery/changing-delivery-address-method/local-pickup?id=4... 

At the very least I believe that the OP is required to collect Nevada state sales tax from the buyer, but they are going to have to contact eBay and have them changes the sales tax that was charged from California state sales tax to Nevada state sales tax. 

And @silverstatetreasureboxes  you may very well be correct. The buyer may be expecting not to have to pay sales tax, unfortunately the seller is going to have to set them straight regarding that specific detail.

@lectrician1 Please come back here and let us know how this transaction went, and what eBay may have told you regarding the sales tax issue.

[fab_finds4u]

Points to ponder.

The sales tax is applied to eBay items being DELIVERED to CA. On a local pickup the item isn't being delivered to CA, thus no sales tax would or should be charged.  

I don't believe CA can charge your buyer  sales tax on items he paid for in person in another state.  

[dbfolks166mt]

You may want to take a look at the eBay sales transaction. I suspect eBay has already taken out their fees and any applicable sales tax if you are in MP or you will see it on your monthly invoice if you are not yet in MP. Generally from what I have seen the sales tax is collected on/for the state in which the buyer resides. 

[lowcostsales2014]

Depending on your state the BUYER may be responsible for handing over the tax to HIS/HER STATE!

I know in some states when you do your state income tax there is a line for

SALES TAX FOR ITEMS PURCHASED OUT OF STATE.

So the taxpayer has to pay Sales Tax for items they purchased from out of state in which sales tax was not collected on.

I do agree with the previous poster that said for the SELLER unless they have a resale certificate they most likely do not have to collect as it would be the equivalent of a FB Marketplace/Yard Sale type sale.

Of course I am NOT a Tax Official or accountant so this is just my thoughts to try to help & NOT legal Advice :-).

[hiddentreasure4u]

kds99, be careful when being paid in advance through eBay and having the customer pick up in person.  Technically, there is no electronic proof of delivery through a third independent party which is required to... yes, prove that delivery was made.  An unscrupulous buyer could claim that they never received their item, and file a non-receipt claim.  Even if they physically stood in front of you and you placed it in their hands. You will not have electronic proof of delivery and would most likely lose the claim.  Not saying it happens a lot, and not sure what the value or size of your items for sale are, just putting it out there for food for thought so you don't wind up on the short end.

[7606dennis]

Are you registered with your state to collect and remit sales tax? 

Are you operating a business by attempting to make income from your selling activities?  If so, you may be operating an unlicensed business and should contact your state's department of revenue to learn how to get yourself right with your state's laws.

[7606dennis]

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@lectrician1 wrote:

sales tax was for california

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Since the item is being delivered to the buyer in Nevada it would be Nevada's sales tax laws that would apply.

[7606dennis]

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@fab_finds4u wrote:

Points to ponder.

The sales tax is applied to eBay items being DELIVERED to CA. On a local pickup the item isn't being delivered to CA, thus no sales tax would or should be charged.  

I don't believe CA can charge your buyer  sales tax on items he paid for in person in another state.  

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If the buyer is taking possession of the goods in Nevada, that state's sales tax laws would apply.  The fact that the buyer lives in California would have no bearing on the buyer's tax liability.

[downunder-61]

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@hiddentreasure4u wrote:

kds99, be careful when being paid in advance through eBay and having the customer pick up in person.  Technically, there is no electronic proof of delivery through a third independent party which is required to... yes, prove that delivery was made.  An unscrupulous buyer could claim that they never received their item, and file a non-receipt claim.  Even if they physically stood in front of you and you placed it in their hands. You will not have electronic proof of delivery and would most likely lose the claim.  Not saying it happens a lot, and not sure what the value or size of your items for sale are, just putting it out there for food for thought so you don't wind up on the short end.

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Buyer is paying in cash upon pickup

[lectrician1]

I asked the buyer to just pay the invoice through ebay and let them collect the tax. I

dont have time for the nonsense

[lowcostsales2014]

Depending on the buyer's state tax law it may.

In other states you are responsible on your income tax form for paying Sales Tax for items  purchased out of state.