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US Seller, with a buyer in France.
I’m selling an expensive item.
It needs to first be “authenticated by eBay†and then sent to the buyer by eBay.
I received a request from a buyer in France.
Before I responded, I’m wondering:
1. Is this even possible?
2. I’m assuming that eBay would handle all the paperwork, customs, etc.
3. What if it’s lost or stolen in someway?
4. Is there Sales Tax on something sold outside the USA?
5. Because of the high value, does it get reported to the IRS?
6. Then how do I handle that possible tax liability?
7. Meaning, for example: if the value of the item is $5,000. How does the IRS tax the sale.
8. For example: If the item cost me $4,000, the profit is way less than $1,000 after paying eBay their commission.
Thanks in advance for your feedback!
shipscript
·2 years ago@fredpulsar
To add to the other comments, which are all correct and appropriate:
Your current listing does not support shipping outside the US, which is probably why the buyer in France had to send a message to find out if you would ship to France.
The item would not go through eBay's authenticators when the buyer is International. It would, instead, ship directly to the international buyer.
However, the watch exceeds the US $2500 export limits and would require additional paperwork to export, which would disqualify the sale from eBay International Shipping (EIS).
https://www.ebay.com/help/selling/shipping-items/setting-shipping-options/ebay-international-shipping-program?id=5348
Thus, even if you are enrolled in eBay International Shipping (which I hope you will be because the benefits are worth it), an item that exceeds $2500 would not qualify for the program, and EIS would not display an international list of countries to which the item would ship.
Now, to the question of whether your are enrolled in EIS: If you are not yet invited to enroll, you will NOT see the eBay International Shipping option at the top of this account page:
https://www.ebay.com/ship/prf
My other account was invited, and is enrolled as shown below. This account, on the otherhand, has not yet been invited and that entire section (marked in red) is missing, so if I want to export, I must do so on my own.
If you are enrolled in EIS and have other items to ship internationally, your protections are quite broad. After you get your item successfully to eBay's export hub, eBay's partner takes ownership of everything that comes after. If the item is lost or damaged thereafter, or if the buyer has a change of heart, eBay's partner will take possession, compensate the buyer, and sell it in the local market. Your side of the transaction is unaffected. Exporting can't get any better than this.
I know the others have already answered these questions, but I'll just go down the bullet list to repeat.
For this item: No, if the buyer is not in the US.
If your buyer is in the US, it will go to the authenticator first.
No, because the sale exceeds $2500.
If the item were less than $2500, eBay would handle export paperwork and international leg of transport.
You must insure the item prior to shipping and collect from the carrier if lost in transit.
If shipping to eBay's Intl hub, or shipping to eBay's authenticator, you insure to the hub. eBay takes on liability thereafter.
Sales tax is based on destination. eBay will collect from the buyer, including VAT for Intl buyers.
Yes.
Meaning, for example: if the value of the item is $5,000. How does the IRS tax the sale.
For example: If the item cost me $4,000, the profit is way less than $1,000 after paying eBay their commission.
Talk to your accountant. There will be cost of acquisition and costs associated with the sale, which you can deduct. This item might be a capital gains sale. Otherwise, the profit that remains is added to your other income and the total of your income from all sources may determine your tax. This is really a question for your tax advisor because situations vary.
wooden_flower
Mentor2 years agoThe authentication service for watches is only for deliveries to US addresses.
https://www.ebay.com/help/selling/selling-tools/ebay-authenticity-guarantee?id=4644&st=3&pos=1&query=eBay%20Authenticity%20Guarantee&intent=Auth&lucenceai=lucenceai&docId=HELP1344
So I don’t know if your other questions about international shipping need answers, but I would not ship an item like that outside the US. You should add PO Boxes to list of excluded locations, since the authenticator can not ship to PO Boxes.
If you want to ship internationally, opt in to the international shipping program. I don’t know the limit for France, they may or may not allow your item - I don’t ship internationally any longer.
Manage your exclusions and international shipping here - https://www.ebay.com/ship/prf
Your profit is taxable even if you don’t get a 1099k. IL requires a 1099k for sales of $1,000 and 4 items. Next year, the federal threshold is $5,000 and any number of items.
Your profit is added to your regular income, so it is taxed at your regular tax rate, both federal and state. You can make an estimated tax payment at irs.gov, if the amount due will put you in penalty territory if you wait until April
comics-scifi-collectibles
Mentor2 years ago@fredpulsar. Authenticity guaranteed doesn't work for international sales with exceptions for Canada and Australia on sneakers.
What is the item number? Do you have international shipping on the listing?
Just starting with the most important question first as I'm on my cellphone.