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Sales Tax Reimbursement.
What's a buyer to do when seeking reimbursement for sales tax incorrectly charged on an item bought that is deemed exempt from sales tax in the buyer's State? The seller says eBay collects the sales tax, get reimbursed from them. EBay says to file a sales tax exemption document to get reimbursed. But that document applies for businesses, not eBay buyers that are not businesses.
20 comments
rock.star
·1 year agoThis often happens when the item is listed in the wrong category.
Making it taxable.
smflying
OP1 year agoWho listed it in the wrong category ? who deemed it taxable? This is what my State deems what is exempt from sales tax : https://www.nj.gov/treasury/taxation/pdf/ssutmedical.pdf
monroe67
Mentor1 year ago"Who listed it in the wrong category ?"
The seller. Sellers are (usually) human, just like you, and sometimes make mistakes. Sometimes, they just don't know what they're selling and choose the wrong category.
"who deemed it taxable?"
eBay, based on the category in which it was listed. In my experience, eBay is pretty good at following each state's sales-taxable categories.
As for how you, an individual, can get your sales tax money back, the state of New Jersey may have some process. I'd look further into that, if I were you.
OR -- just let it slide, and let New Jersey keep the sales tax. Surely they will use it properly, don't you think?
rfmtm
Mentor1 year agoWhy was the sales tax incorrectly charged? Was the item in a taxable category by mistake?
Some states apply tax differently for online orders of certain items, did you check for that with your state revenue office?
What type of item was it and what category was it in or what was the Item Number?
smflying
OP1 year agoHave no idea why the sales tax was incorrectly charged. The item is a medical device. Medical devices are in a group that my State exempts from sales tax. Explained this to eBay reps, can't get through their thick skulls. They couldn't explain why I'm not charged sales tax when I buy vitamins, supplements and OTC drugs, which are also in the group that my State exempts from sales tax.
rfmtm
Mentor1 year agoWhat was the Item Number and what state are you in? Will need this basic info to tell you what happen.
smflying
OP1 year agorfmtm
Mentor1 year agoIt would appear this is in the right category and should be tax exempt in the state of NJ. You need to confirm this by contacting the NJ state revenue department who are the only ones to correct any problem with ebay's tax collection system and advise you how to get a tax refund.
smflying
OP1 year agoWell, screw that. The onus is on eBay to correct the problem, not the State. The State promulgates the rules and guidelines and it's up to eBay to follow them. If eBay doesn't rectify the problem, then I'll dispute the charge on my credit card. They'll handle it.
rock.star
·1 year agoEBay is very good about what tax to collect and which to not.
But the taxes are determined by the the category.
If the item is listed in the wrong category it will be taxed based on that category.