eBay

eastmeetswest · ‎08-13-2019

I have been reshipping items for a friend in Asia and realized that in-bound items are being taxed. Depending on value, he then has to pay a GST when he receives the items. This "double taxation" doesn't seem fair but I'm not sure how to do a tax drawback like foreign visitors can do at their departing airports.

So, I'm wondering if anyone knows how to avoid this double taxing? Also, do you know if tax is collected on purchased items shipped directly overseas?

pburn · ‎08-13-2019

I'm not sure what you mean by "in-bound items are being taxed." "In bound" from where?

Are you purchasing items for your friend and having them shipped to you? Or are they being shipped to a freight forwarder in the U.S.? Sales tax is charged by the destination of the package, so, either way, if you or the freight forwarder are located in a state that charges sales tax for online purchases, the transaction will be taxed.

If that's not what you're doing, maybe you could explain it in more detail.

P.S. Paying sales tax to a given state in the United States where the package is being delivered and paying GST to your friend's home country is not "double taxation" per se--not in the definition of the phrase, anyhow. He's paying tax two times because of the procedure he has chosen to receive items. Sales tax in the United States is levied on a transaction, not an item. An individual item can be taxed every time it's sold (with a few exceptions, of course).

eastmeetswest · ‎08-13-2019

By in-bound, I was referring to items I purchase on his behalf and have shipped to me (because many sellers won't do international sales) - these inbound items are being taxed

I am wondering if the item would be taxed if he purchases it (using his registered overseas ID) and then has it shipped to me.

Same question - if he purchases something for direct shipment overseas, would the item be taxed?

pburn · ‎08-13-2019

@eastmeetswest wrote:
By in-bound, I was referring to items I purchase on his behalf and have shipped to me (because many sellers won't do international sales) - these inbound items are being taxed
I am wondering if the item would be taxed if he purchases it (using his registered overseas ID) and then has it shipped to me.
Same question - if he purchases something for direct shipment overseas, would the item be taxed?

Again, @eastmeetswest, as I said in my original reply, "Sales tax is charged by the destination of the package, so, either way, if you or the freight forwarder are located in a state that charges sales tax for online purchases, the transaction will be taxed."

It doesn't matter where the purchaser lives. The sales tax is based on to where the package is being delivered. If the delivery location imposes a sales tax, the purchaser will be charged for it.

If the package is being delivered to a location in Asia, the buyer will pay appropriate taxes/duties for that location.

luckythewinner · ‎08-13-2019

@eastmeetswest wrote:
By in-bound, I was referring to items I purchase on his behalf and have shipped to me (because many sellers won't do international sales) - these inbound items are being taxed
I am wondering if the item would be taxed if he purchases it (using his registered overseas ID) and then has it shipped to me.
Same question - if he purchases something for direct shipment overseas, would the item be taxed?

If eBay is collecting sales tax on behalf of your state, then eBay should be charging that sales tax based on where the item is being shipped. So in theory, it should not matter whether you purchase them with your ID or whether he purchases them with his ID.

pburn · ‎08-13-2019

Right. That's why I posted in message #2:

"Sales tax is charged by the destination of the package, so, either way, if you or the freight forwarder are located in a state that charges sales tax for online purchases, the transaction will be taxed."

And in message #4:

"The sales tax is based on to where the package is being delivered. If the delivery location imposes a sales tax, the purchaser will be charged for it."

disneyshopper · ‎08-13-2019

What STATE is your friend located? If located in a state that has a Merchant Facilitator law, the merchant is required to collect the appropriate sales/use tax. It doesn't matter where the item is being shipped from.

Go to one of your listings. Click on the SHIPPING & PAYMENTS tab. Scroll down to the section regarding sales tax and click on the LEARN MORE link. You will be able to see which states have this Merchant Facilitator law. I do not see your state LOUISIANA listed.

disneyshopper
Volunteer Community Member

7606dennis · ‎08-13-2019

If you are receiving the deliveries for reshipping to your friend, I would think that if you are not a licensed shipping business, the state in which you are located probably looks at you as the receiving destination. When shipping it to your friend's country, that country's laws govern whether tax is owed to them.

"It is an intelligent man that is aware of his own ignorance."

7606dennis · ‎08-13-2019

Out of curiosity, are you purchasing the items and then re-selling them to your friend in Asia? If so, the sales made and delivered to you may not be taxable if you have an exemption for merchandise purchased for re-sale.

"It is an intelligent man that is aware of his own ignorance."

pburn · ‎08-13-2019

@disneyshopper wrote:
What STATE is your friend located?

From the first sentence of the OP's first post:

"I have been reshipping items for a friend in Asia . . . "

o3layla1 · ‎12-05-2019

Pretty sure you and Ebay are full of it, and yes, buying used personal items from someone overseas is double taxation, period, then if one resells taxed again.
I researched this in depth, if a seller in, lets say Japan, sells an item to a US citizen. If they have no presence in the US, or not a US citizen, no warehouses etc, they are not required to collect taxes for any state.
One pays duties and customs depending on what country they live in. Ebay has no business collecting anything on overseas sales. Look it up.
On a separate issue.
Personal sales are not taxable except, the lame supreme court ruled ebay as a selling platform, therefore a personal sale that one would make in person that is unlawful to tax, suddenly is lawful to tax.
They are vultures, double talking politicians and thieves.
Expect sales to be real difficult as people learn the hard way this has been enacted, as Ebay doesn't even feel the need to put it on the sellers page.

o3layla1 · ‎12-06-2019

So, unless ebay can confirm the seller I just bought from overseas has done this much business in my state in the last year(he hasn't) what do they think they are doing adding a tax on an overseas buy.

You are an international seller who has no physical presence in the U.S., but who makes sales into the U.S.

In this case, you may have economic nexus. A June 21, 2018 Supreme Court of the United States case allowed states to require online sellers with “economic nexus” in their state to comply with that state’s sales tax requirements.

This simply means that if a seller – no matter where they are located – makes a certain dollar amount of sales in a state, or a a certain number of transactions with buyers in that state, then they are required to collect sales tax in that state.

For example, in Kentucky, any seller (U.S. based or international) who makes more than $100,000 in sales in the state in the previous or current calendar year, or who made more than 200 sales transactions in the state in the previous or current calendar year, is required to comply with Kentucky’s sales tax laws. Compliance means registering for a Kentucky sales tax permit and collecting sales tax from any buyers in Kentucky.

About half the states in the U.S. currently have economic nexus laws. You can read more about each U.S. state’s economic nexus laws here.

the*dog*ate*my*tablecloth · ‎12-06-2019

Marketplace Facilitator laws use the MF volume of sales not the sellers to determine whether tax is collected. I’m pretty sure EBay has more than 100k in facilitated sales a year.

Used items have always been taxable. There was a use tax due if you buy from out of state. People who didn’t pay it in the past required this change to the collection method.

7606dennis · ‎12-06-2019

@o3layla1 wrote:
Pretty sure you and Ebay are full of it, and yes, buying used personal items from someone overseas is double taxation, period, then if one resells taxed again.
I researched this in depth, if a seller in, lets say Japan, sells an item to a US citizen. If they have no presence in the US, or not a US citizen, no warehouses etc, they are not required to collect taxes for any state.
One pays duties and customs depending on what country they live in. Ebay has no business collecting anything on overseas sales. Look it up.
On a separate issue.
Personal sales are not taxable except, the lame supreme court ruled ebay as a selling platform, therefore a personal sale that one would make in person that is unlawful to tax, suddenly is lawful to tax.
They are vultures, double talking politicians and thieves.
Expect sales to be real difficult as people learn the hard way this has been enacted, as Ebay doesn't even feel the need to put it on the sellers page.

Based on the unkind feedback you have received, it appears that some of your customers are not happy with the product you are selling. While I ordinarily advise buyers not to use feedback as a product review, being that you are also the manufacturer might I suggest that give some thought to these buyer's complaints. While it is easy for the large company to ignore the complaints of some buyers, it isn't necessarily the wisest course of action to do so.

"It is an intelligent man that is aware of his own ignorance."