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Sales tax
Why does ebay include shipping charges to assess sales tax? Shouldn't the sales tax just be on the item purchased?
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Why does ebay include shipping charges to assess sales tax? Shouldn't the sales tax just be on the item purchased?
monroe67
Mentor1 year ago"Why does ebay include shipping charges to assess sales tax? Shouldn't the sales tax just be on the item purchased?"
eBay follows the laws of the nations and US states where eBay operates.
Buyers pay sales taxes. eBay calculates sales taxes at the rate in effect at the US Zip Code in the delivery address.
Some states' laws require that sales taxes have to be imposed on the shipping charge as well as on the cost of the item purchased.
eburtonlab
Mentor1 year agoWhether shipping is included in a sales tax calculation depends on the law in the state the item is being delivered to.
https://www.taxjar.com/sales-tax/sales-tax-and-shipping