why the sales tax is calculated including shipping instead of product cost alone? we don't pay taxes

[sammy2966]

why the sales tax is calculated including shipping instead of product cost alone? we don't pay taxes

[mach128]

Ebay makes more profit that way - something they truly care about.

[buyselljack2016]

@sammy2966 

some states require the sales tax to be collected on shipping.

[kensgiftshop]

@sammy2966 

Some states require the sales tax to be applied to the shipping charge also.

[dryophelia]

@mach128  

Nothing is free. There is a fee to have a table at the flea market, a fee to rent space in an antique mall, fees if a consignor is involved and fees to sell on eBay. Those fees will be profit for someone up the food chain. 

Would you operate at a loss? Not for long, if you did. We all want profits. Nothing wrong with that.

[sammy2966]

What about Puerto Rico? Do you know if they also charge taxes for shipping cost?

[sammy2966]

Thanks

[ondale]

That is illogical thinking by those states and eBay requiring the payment of sales tax on the shipping costs.  You are correct in implying it is a money grab by those states.  They must think that all eBay items would change to $.01 buy it now with variable shipping that really cover the cost of the item.  That would avoid sales taxes.  Just like in the original days of eBay on how sellers avoided fees by inflating S/H costs

[stephenmorgan]

That chart says Sales Tax for online shipping.  So the states who charge Tax for online shipping, are they also requiring shipping services such as USPS within their state to collect Sales Tax?

[soh.maryl]

You could be missing a point here.  Regardless of whether or not you believe this is "illogical thinking", it's a LAW and eBay is required to comply with the law by collecting state sales tax on the shipping fee for purchases delivered to those states.  

[releasethekraken_1]

---

@stephenmorgan wrote:

That chart says Sales Tax for online shipping.  So the states who charge Tax for online shipping, are they also requiring shipping services such as USPS within their state to collect Sales Tax?

---

If you buy something online from a company within your state, and if your state collects sales tax on the shipping cost, then the company you're buying it from would collect that sales tax. USPS doesn't collect payments for products, so obviously they wouldn't collect sales tax on shipping or on anything else.

If you buy something over the phone, it works the same way.

[releasethekraken_1]

---

@ondale wrote:

That is illogical thinking by those states and eBay requiring the payment of sales tax on the shipping costs.

---

How is eBay thinking illogically by simply following the law? They fought against sales tax for online purchases for years, so obviously they would have preferred that you not be taxed at all. But they lost, so they're required to collect it.

[stephenmorgan]

Well, yes the USPS does collect payments for products and you can purchase their products on-line.  Additionally if I purchase USPS Shipping from other than eBay I am not charge Sales Tax.

[releasethekraken_1]

---

@stephenmorgan wrote:

Well, yes the USPS does collect payments for products and you can purchase their products on-line.  Additionally if I purchase USPS Shipping from other than eBay I am not charge Sales Tax.

---

You're not charged sales tax when you purchase postage on eBay either. The BUYER is being charged sales tax on the shipping; you're not being charged sales tax on postage.

[fab_finds4u]

If you're going to join the discussion you should give accurate answers. The OP wants factual answers not some smart alec answer blaming it on eBay wanting more profit.