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Ebay charging tax or clothing items that are non-taxable

I sell NFL Hats that are being tax in many states where the item is non-taxable. Ebay claims that they have to tax that category even though that clothing sold in sports apparel category is non taxable. That is completely nonsense, retailers all across the country are able to program items that are not state taxable correctly. The buyers are not happy that is happening but it is not the sellers doing it, IT IS EBAY! From what I understand the some states are doing audits of Ebay sales tax collection in response to consumer complaints. What is Ebay is doing is just totally wrong!

 

It just seems many things that Ebay does is just hurting the sellers

 Managed payments is a disaster. Ebay claims that drop shipping from a retailer is not permitted yet there are thousands of sellers who are actually doing just that.

 

I plan to adios as soon as I sell off most of what inventory is left.

 

 

Message 1 of 20
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Ebay charging tax or clothing items that are non-taxable

I don't know for sure but some of the states charging sales tax for clothing don't consider hats apparel but accessories.  Ebay isn't taking the money for tax unless it is required by the buyer's state.

 

Rest assured I'm not an eBay cheerleader.  At all.




Joe

Message 2 of 20
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Ebay charging tax or clothing items that are non-taxable

Why is sports apparel not subject to sales tax?  I've never heard of that.

Message 3 of 20
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Ebay charging tax or clothing items that are non-taxable

I don't know about all states but in Pennsylvania clothing is not taxed but sporting equipment is .

You could try listing in the hat category instead of sports equipment. 

Message 4 of 20
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Ebay charging tax or clothing items that are non-taxable

List your hats in the Clothing/Shoes/Accessories category and your buyers won't be charged sales tax in those states that don't charge tax on clothing.

disneyshopper
Volunteer Community Member

Message 5 of 20
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Ebay charging tax or clothing items that are non-taxable

That category isn't just for clothing so they can't make the whole category tax free where applicable.  I don't know how many states do not charge tax for clothing but in order to make it doable ebay would probably have to separate the sports apparel category from the sports souvenir category.

Message 6 of 20
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Ebay charging tax or clothing items that are non-taxable

I had the same thing happen to me. I live in MN and we have no tax on any clothing. I asked about it on the Wednesday chat meeting and they told me to call CS and they would remove it. 

I would imagine they still send the tax to the state even if they are not supposed to collect. OR they put it in their pocket😮

They should get this straightened out. Another way to lose Buyers. How many are going to get angry and quit buying on eBay....

 

Many states don’t charge taxes on groceries OR clothing.

Message 7 of 20
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Ebay charging tax or clothing items that are non-taxable

I realize you are trying to help but your solution is wrong. The category that is clothing and hats have different item specifics that do not apply to baseball or sports hats.  A buyer would never see the listing.

Other online retailers have no problem correctly charging no tax on exempt clothing items. A hat is a hat no matter if it is a sports item or regular cap. In states the does not charge sales tax on clothing, hats are considered clothing.

Message 8 of 20
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Ebay charging tax or clothing items that are non-taxable

A sports hat, a regular cap, sport jersey or a jacket that is sports related is still a article of clothing. If you buy any item of clothing in any sporting goods store or any retailer in a state that does not charge sales tax on clothing then it is not taxable. Why should Ebay be different. Just because you never heard of that does not mean

your statement is accurate.

Message 9 of 20
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Ebay charging tax or clothing items that are non-taxable

It may be the category that you are selling the items in.  When Ebay goes to determine if sales tax is due for any given state, it looks at the category the item is listed in.  So if you feel you are selling an item that should not be taxed in certain states, you may be selling the item in the wrong category.  In a category like sports apparel, it could very well be exactly like Ebay told you.  There are things in the category that aren't taxable and some things are.  So charge sales tax on all.  What type of retailers are your comparing Ebay to?  That may make a difference.

 

Ebay looks to the category for what is and isn't taxable for any given state and they look at the buyer's zip code.  Buyers that live in lower taxable areas inside any given state should use the 9 digit zip code for their area so they can get the appropriate tax rate.  For buyers that only use the 5 digit zip code then Ebay uses the flat rate the states have determined Ebay should charge.


mam98031  •  Volunteer Community Member
Message 10 of 20
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Ebay charging tax or clothing items that are non-taxable

If apparel is not taxed, you need to list in apparel, not sports memorabilia.  Just change the category.


When you dine with leopards, it is wise to check the menu lest you find yourself as the main course.

#freedomtoread
#readbannedbooks
Message 11 of 20
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Ebay charging tax or clothing items that are non-taxable

Amazon, Dick's, Kohl's Walmart etc etc  does not charge sales tax on baseball hats that are shipped to NJ or Pa.

These are states that I know absolutely consider baseball hats non taxable. I tried purchasing baseball hats from these retailers as a test and used NJ and Pa shipping address and no tax was charged.   However buyers that have purchased from us that live in PA or NJ has been charged tax. See for yourself.

Message 12 of 20
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Ebay charging tax or clothing items that are non-taxable

Yes, In some states sport apparel is considered taxable.  But not in PA or NJ. My buyers that live in those states are being incorrectly charged sales tax.

Message 13 of 20
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Ebay charging tax or clothing items that are non-taxable


@chpgts wrote:

...Just because you never heard of that does not mean

your statement is accurate.


I didn't make a statement, so how could it have been inaccurate? I merely asked a question because I'd never heard of that.

Message 14 of 20
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Ebay charging tax or clothing items that are non-taxable

Mam said...”Ebay looks to the category for what is and isn't taxable for any given state and they look at the buyer's zip code.  Buyers that live in lower taxable areas inside any given state should use the 9 digit zip code for their area so they can get the appropriate tax rate.  For buyers that only use the 5 digit zip code then Ebay uses the flat rate the states have determined Ebay should charge.“


This is important to prevent fraud. It would be harder to mail a letter instead of a package to the same zip code when you have 9 codes rather than 5. 😉 Sugar 

Message 15 of 20
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