Sales Tax Charged by Ebay for Seller from China????

[mam98031]

I understand that Ebay is now considered a Facilitator in a few states and due to recent tax law changes, Ebay must charge, collect and remit sales tax on what sellers sell on this site to certain states that require it.  I get all of that.

I live in one of those states.  But what I don't understand is why sales tax was charged to me on something I purchased from a seller in China.  I wasn't aware that the tax laws of a state could affect a seller located in a different country. 

Or is it just my misunderstanding and the states do have the right to charge sales tax on sales from an international seller?  What the heck am I misunderstanding. 

I just have a desire to understand.   

[mam98031]

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@gobuyitnow wrote:

Many sellers buy inventory on eBay. Items for resale are not supposed to be taxed.

Is eBay providing a way for resellers to opt out of paying the tax?

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No, not at this time.  You will need to keep track of that and report it on your tax reports to your state.

[foodshop65]

me too, don't quite get it. cust service was of no help, go figure

[mam98031]

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@foodshop65 wrote:

me too, don't quite get it. cust service was of no help, go figure

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Many states now have passed what is called as Facilitator laws.  Ebay is considered a Facilitator.  So if an item ships INTO a state that has passed such a law, sales tax is due for that state.  It doesn't matter where the item came from, it is driven by the state it arrives in.  

So yes, even things you may purchase from China could end up having sales tax due for your state if they have a Facilitator law in place.

Connecticut was added to the Ebay taxable list as of April 1st.

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

Do keep in mind it has to be Ebay charging you the sales tax, NOT the seller from China.

[wsoxman1]

If you purchase an item that came from a foreign country and a tax is collected.

1. Who sets the tax rate?

2. Who gets the tax revenue?

[mansons2005]

Simple answer to both questions is: The State to which the merchandise is shipped. They are the entity that has passed the law.

[7606dennis]

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@wsoxman1 wrote:

If you purchase an item that came from a foreign country and a tax is collected.

1. Who sets the tax rate?

2. Who gets the tax revenue?

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The answer to both your question is your state.  

[mam98031]

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@wsoxman1 wrote:

If you purchase an item that came from a foreign country and a tax is collected.

1. Who sets the tax rate?

2. Who gets the tax revenue?

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@wsoxman1 

Sales tax is driven by the state the item is DELIVERED to.  It does not matter where it is being shipped from, even a different country.

The state sets the tax rate that Ebay collects and it is remitted to the state in which the tax was collected for.

[wsoxman1]

More like the tax is collected by the location of the seller. Arizona has no internet tax. 

Exp. Walmart is located in all states= sales tax for those states that have Nexus. 

China has no business with tax ID in states. So how would a sales be applues to a seller with no Tax ID?

My biggest complaint is that nowhere in agreement to pay the price of an item, does it say " plus sale tax".

[soh.maryl]

1. The state for which the state sales tax is collected sets the tax rate.  Just as the state sets the tax rate for WalMart, CVS, gas station purchases.

2. eBay collects the tax per the direction of the state and remits it to the state; therefore, the state receives the tax revenue.

[soh.maryl]

You've picked up some wrong info somewhere.

The state tax is collected based on the shipping location of the buyer.  That is the state to which the buyer is having his purchase shipped.  

[mam98031]

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@wsoxman1 wrote:

More like the tax is collected by the location of the seller. Arizona has no internet tax. 

Exp. Walmart is located in all states= sales tax for those states that have Nexus. 

China has no business with tax ID in states. So how would a sales be applues to a seller with no Tax ID?

My biggest complaint is that nowhere in agreement to pay the price of an item, does it say " plus sale tax".

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@wsoxman1 

No.  Sales tax on internet purchases are driven by the state in which the item is delivered to.  It does not matter where is ships from.  If your state has no Facilitator Law in place, then yes, only sellers that are in your state would be charging you sales tax.  But it does NOT work that way for states that have passed a Facilitator Law.

BTW, Arizona has a Facilitator Law and you are now subject to sales tax from everyone on Ebay that you purchase from.  It was effective October 1st.

[wsoxman1]

Well, Im selling my ebay stock on Monday. Government and taxes are driving the citizens broke.

[7606dennis]

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@wsoxman1 wrote:

Well, Im selling my ebay stock on Monday. Government and taxes are driving the citizens broke.

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That, of course, is your prerogative, but I wouldn't blame it on eBay for collecting taxes that they are required to collect by law.  Perhaps you need to look closely at your elected government officials and see precisely how they are spending the revenue that they take in via taxing the citizens.

Of course, all programs cost money money to operate, so since the governments main source of revenue is derived from taxing its citizens, I'm pretty sure that less tax revenue means less government programs.  Whether that is good or bad remains to be seen.

[patobrien3]

I'm betting whether they admit it or not, Ebay is pocketing sales tax collected for foreign sales.

[torg.2020]

Most of my online purchases start from ebay search first then elsewhere. But from now on, I will steer clear from ebay.