Anyone else paying Sales Tax for an International purchase?

[checkit]

I just bought an item from a seller in Vietnam, and eBay charged me 6% Sales Tax. Does anyone know why that would be????

[woodland_gnome]

Because you live in a state that requires sellers (or venues such as eBay) to COLLECT the tax that you owe on the purchase regardless of the seller's location?  After a US Supreme Court ruling finding that the states have jurisdiction over sellers with internet sales to the states some* have passed legislation requiring such sellers to collect the tax (you owe it whether it is collected or not) for sales to that state, and eBay has set up a mechanism where it collects the tax for those states and remits it to the state.

*ETA: and others will follow when their legislatures are in a session where they can address it.

[7606dennis]

Sales tax is paid by the buyer not the seller so it is a matter of the buyer's location.  Most sellers outside of the country aren't registered to collect sales tax on behalf of a state, but since some states have passed market facilitator laws, eBay, as the facilitator would be required to collect it if you reside in one of those states.

Of course, most states that charge sales tax also have use tax statutes on the books that required the buyer to pay the use tax on items delivered to them in the state.  The facilitator laws are the state's way to get the tax collected because people didn't pay the use tax as required.  If you really want to complain about it I would start with your state representatives if I were you.  However, I doubt that it will get the law repealed by doing so. 

[remispe_54]

Apologies @checkit for the foolish answers. Your seller is dropshipping from Amazon, which taxes Iowa.

[kriyayogapublications]

Okay thanks, everyone.

[the*dog*ate*my*tablecloth]

@checkit @As of January 1st, Iowa instituted a marketplace facilitator law. eBay is responsible for collecting and remitting use tax for eligible purchases in Iowa. The first few posters were correct, this is the law regardless of whether the international seller is dropshipping from Amazon.  

[checkit]

Okay - dumb question because with a little leg work I could probably figure this out - currently if I sell an eBay item to a buyer in Iowa I collect the Sales Tax and remit it to the State Treasurer at the end of the year. Is eBay going to do that now for local sales as well? (Maybe they have been all along and I've been making a redundant tax payment to the State of Iowa?)

[daw365]

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@checkit wrote:

Is eBay going to do that now for local sales as well? (Maybe they have been all along and I've been making a redundant tax payment to the State of Iowa?)

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eBay is automatically collecting and remitting sales tax for Iowa now, starting this year.

[checkit]

Great news for me - Thanks!

[7606dennis]

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@checkit wrote:

Great news for me - Thanks!

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You might want to check with your department of revenue to see how you need to account for the eBay sales on your sales tax return if you also have other in-state sales that you may still be required to collect tax on.