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.   

[mansons2005]

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@patobrien3 wrote:

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

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I hardly think a corporation as large as eBay would try and cheat a state out of such a comparatively small amount of money - particularly when the paper trail is so obvious.

[mam98031]

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@patobrien3 wrote:

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

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@patobrien3 

Ebay just isn't that short sighted no matter how much you dislike them.  Some just don't understand the new laws and therefore are trying to find ways of placing the blame elsewhere.  Some just want to find fault in Ebay for something they fought hard to prevent because they didn't even bother to do a Google search to get some of the facts on the subject.

[mam98031]

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@torg.2020 wrote:

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

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@torg.2020 

You will also need to avoid other Marketplaces like Etsy, Amazon, Walmart, Target, Kohls, Macy's, etc.  Because they will be charging you sales tax too if you purchase from them.

I have no idea why some what this to appear to be all about big bad Ebay.  Do some Google searches and learn about how this process is actually affecting online sales on all kinds of sites, absolutely not just Ebay.

[patobrien3]

I don't dislike ebay. What do you do for them? (job title)

[mam98031]

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@patobrien3 wrote:

I don't dislike ebay. What do you do for them? (job title)

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@patobrien3 

Just because you don't like what I said does not mean I work for Ebay.  It simply means you don't like what I said.  In an effort to try and dismiss what was said, some posters have the need to throw such a statement out there, as an insult, to throw shade on whatever was said that they didn't like or appreciate.  It doesn't change anything except maybe makes you feel a little better.  

[lonewolf552000]

Enforcement date:
October 1, 2019    

Summary: 
A marketplace provider that has an obligation to collect Texas sales or use tax and sells or facilitates sales of taxable items into Texas must collect and remit sales or use tax on all sales made through the marketplace for delivery into Texas. 

Non-collecting seller use tax reporting: 
No

that sums it up for me, no more buying from Fleabay, I'll just continue to use Aliexpress and Alibaba where I can still get the same goods with Free Shipping and not have FleaBay bill me for taxes.... problem solved

[7606dennis]

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@lonewolf552000 wrote:

Enforcement date:
October 1, 2019    

Summary: 
A marketplace provider that has an obligation to collect Texas sales or use tax and sells or facilitates sales of taxable items into Texas must collect and remit sales or use tax on all sales made through the marketplace for delivery into Texas. 

Non-collecting seller use tax reporting: 
No

that sums it up for me, no more buying from Fleabay, I'll just continue to use Aliexpress and Alibaba where I can still get the same goods with Free Shipping and not have FleaBay bill me for taxes.... problem solved

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I believe you have misinterpreted the part about Non-collecting seller use tax reporting.  While a seller that doesn't meet the state's criteria to be required to collect sales tax in your state and doesn't have to report the sales to the state for the purpose of use tax, the buyer would still be responsible for self reporting and paying the use tax owed to the state.  Thus, unless you are intending evade paying the use taxes you owe to your state, purchasing from the sites that you mention would be to no avail. 

[torg.2020]

Online buyers figure out that they have to pay for sales tax, so why not buy from the brick and mortal stores and don't have to wait 1-2 weeks.  

[mam98031]

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@torg.2020 wrote:

Online buyers figure out that they have to pay for sales tax, so why not buy from the brick and mortal stores and don't have to wait 1-2 weeks.  

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@torg.2020 

The list is endless on the reasons why someone may shop online.  We all don't have the same lifestyles.

Some live in a rural setting, getting to a store is quite a distance.

Some have physical challenges that prevent them from going to a store.

Larger selection and price variety.

Hard to find items.

Convenience. 

Limited time to shop.

Etc. Etc.

[7606dennis]

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@torg.2020 wrote:

Online buyers figure out that they have to pay for sales tax, so why not buy from the brick and mortal stores and don't have to wait 1-2 weeks.  

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Actually, I prefer to shop locally if I have the time and the item is readily available.  Frankly, I enjoy being able to handle the goods before buying.  I admit, much to my wife's dismay, that I can spend quite a bit of time browsing in a store and often buy on impulse if something strikes my fancy. 

Buying online is okay if it is something that I can't find easily locally.  However, I usually don't concern myself with having to pay tax on items I buy.  

[dasarock]

my understanding is that the facilitator tax is ONLY collected for the state the buyer is in … not country.

that being said … buyer could be registered in china, but using vpn to show ip like he was in a state.  ebay reads his registered location but tax based ipn.  (maybe that would explain it)

[7606dennis]

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@dasarock wrote:

my understanding is that the facilitator tax is ONLY collected for the state the buyer is in … not country.

that being said … buyer could be registered in china, but using vpn to show ip like he was in a state.  ebay reads his registered location but tax based ipn.  (maybe that would explain it)

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You are correct, the tax is collected for the buyer's state and remitted to them in accordance with that state's laws.  However, the location of the seller is irrelevant since the tax is owed on all items being delivered within the buyer's state, the state or country from where the item is shipped doesn't matter.  The tax is still owed to the buyer's state regardless.

[samiam60]

Just on the subject of Sales Tax.  It is going to kill small sellers, who also buy on ebay.  I know Ebay and we have worked hard to stop this tax, but so far no luck.  Another bid push needs to be made to discontinue this Tax.  When margins are so small, every bit counts.  The Politicians only want more money to waste.

D

[samiam60]

Dennis, the tax hurts both Seller and Buyer.  When Buyers think twice about buying something because of the taxes they will have to pay.  It stinks

[mam98031]

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@samiam60 wrote:

Just on the subject of Sales Tax.  It is going to kill small sellers, who also buy on ebay.  I know Ebay and we have worked hard to stop this tax, but so far no luck.  Another bid push needs to be made to discontinue this Tax.  When margins are so small, every bit counts.  The Politicians only want more money to waste.

D

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I understand your concern, but your "margins" have nothing to do with this.  I assume you are referring to your profit margin??!!?  

If you are buying stuff on Ebay for resell, to become a part of what you resell or shipping supplies [in some states], sales taxes are not due.  But to be tax exempt on these, you need to file the proper paperwork with Ebay.  Once you do that it will also we important to split off any purchases you do to a separate account for all stuff you may purchase that is taxable.

Here is a link to where you can file the proper paperwork with Ebay.

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#section2