Can a U.S. state charge sales tax on orders from outside the U.S.

[rjrsgarage]

I live in California. I just placed an order with a seller in the United Kingdom. eBay charged me California sales tax on this order. Is that correct under California law?

Thanks in advance to anyone who knows the answer.

[hurryagain]

...Interesting...

I thought that the tax was supposed to be charged from the state that the item is going to.  That is what I saw on some other posts.

@mam98031...could you maybe clarify?

[mr_lincoln]

@rjrsgarage   This is what eBay stated recently about where the tax is based on:

"What I can say is that in states that have required eBay to collect sales tax under Marketplace Facilitator laws, we always base the 'whether or not to charge' and the amount  upon the buyer's stated location at checkout. "

So, since you are the Buyer and live in California, you get charged your states Sales Tax rate for a purchase that ships to you.

[rjrsgarage]

I understand that in relation to transactions within the United States. My question is whether it also applies to purchases from sellers in another country. I'm not an attorney (much less a tax attorney) and don't know the answer. But I wonder whether state regulation of international trade is preempted by federal law.

I may have to contact the California Franchise Tax Board to get an authoritative answer.

[bonjourami]

It does..its like a transaction sales tax for purchasing on the internet.

[soh.maryl]

Per the OP's post:  The OP is in California.  He made a purchase from a seller in the UK.  Presumably, his purchase is being shipped to California.  The OP is being charged state sales tax based on the shipping location of his purchase which is California.  This is entirely correct.  The delivery address of the item determines the state sales tax charged, not the seller's location.  

[rjrsgarage]

The answer is yes, California does collect tax on purchases from outside the U.S. See

http://www.cdtfa.ca.gov/taxes-and-fees/use-tax.htm#Foreign

[mam98031]

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@rjrsgarage wrote:

I live in California. I just placed an order with a seller in the United Kingdom. eBay charged me California sales tax on this order. Is that correct under California law?

Thanks in advance to anyone who knows the answer.

---

This is absolutely correct.  Sales tax is driven by the state in which the item is being DELIVERED.  It does not matter where it comes from.  Only where it gets delivered.

Some are trying to make this seem more complicated than it is which is causing some confusion for folks.  Sorry you got caught up in this.

But since you bought it and you are in CA where you will have the item delivered to, then CA taxes are due.

[bonjourami · Accepted solution]

Foreign Purchases

Generally, use tax also applies to foreign purchases of tangible personal property brought into California for storage, use, or other consumption. More information about items brought into California through U. S. Customs is available online.

[mam98031]

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@rjrsgarage wrote:

I understand that in relation to transactions within the United States. My question is whether it also applies to purchases from sellers in another country. I'm not an attorney (much less a tax attorney) and don't know the answer. But I wonder whether state regulation of international trade is preempted by federal law.

I may have to contact the California Franchise Tax Board to get an authoritative answer.

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That could only be considered if the place of origination was a factor in sales tax, but it isn't.  Not in any kind of sales tax.  It is always where the item is purchased.  You purchased it in CA and had it delivered to CA, therefore CA tax applies.

Think of it this way.  You go to your local department store and you purchase something that was made in China.  So the product originated in China.  Do you have to pay sales tax at your local department store since the product did not originate in the US?  The answer of course is yes.

The place of origination just plays no part whatsoever in determining sales tax.  Only destination does.

[rjrsgarage]

Thanks to everyone who replied. I'd like to point out, however, that only one of the replies dealt directly with the specific question, which was whether purchases from outside the United States are any different from purchases from other states within the U.S.

It turns out that in California, they are not different (and my instinct was wrong). That might or might not apply to other states. You would have to look each one up separately.

[mam98031]

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@rjrsgarage wrote:

Thanks to everyone who replied. I'd like to point out, however, that only one of the replies dealt directly with the specific question, which was whether purchases from outside the United States are any different from purchases from other states within the U.S.

It turns out that in California, they are not different (and my instinct was wrong). That might or might not apply to other states. You would have to look each one up separately.

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I'm not sure of your interpretation of what each poster posted, but your concern was addressed by most post.

So is your instinct not to pay sales taxes on a product that originated in another country, but you purchase at a local store in CA?  It is no different on the internet.  Origination just doesn't matter.

[7606dennis]

Simple answer to your question, yes they can.

[fab_finds4u]

A foreign purchase has nothing to do with the sales tax.  California is charging sales tax for items delivered to California.  https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121