How Ebay Charges Sales Tax

[car_226227]

I have noticed, for awhile, EBay has collected more sales tax than it actually costs in my county in North Carolina. North Carolina doesn’t have a fixed tax for the entire state but rather allows each county to charge up to 7.50%. Most counties it is 6.75% which is what it is where I live. Why does Ebay charge me 7% when that is not accurate and should be charging the correct amount especially when they have my zip code and they know exactly how much it is.

This not only costs me money but makes buyers pay a little more but should be able to be challenged. I will be removing all listings as the nonsense has become too much with Ebay when I only sell for fun. There are other options out there and one of them actually nets a little more money from and charges the CORRECT amount of tax.

[soh.maryl]

eBay charges the state sales tax to the BUYER, not the seller, and it's based on the BUYER'S delivery location, not the seller's location.  

[maxine*j]

@car_226227 wrote:

... EBay has collected more sales tax than it actually costs in my county...  ... it is 6.75%...  which is what it is where I live. ...Ebay should be charging the correct amount especially when they have my zip code...  

As soh.maryl says, it does not matter what your address is because the sales tax is based on your buyer's address.  

If you sell something to me, the sales tax will be 6%.  If you sell something to someone in Montana, the amount will  be zero because that state does not have a sales tax.   And so on, through each of the 50 states and all the zip coes within each state.

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[releasethekraken_1]

Let’s say eBay is off by a quarter of a percent. Your average sale is, at best, around $25. An extra 0.25% sales tax is 6 cents. Your final value fee on 6 cents rounds up to a penny.

And for that you’re going to fold your tent? OK, best of luck to you.

[eleanor*rigby]

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@releasethekraken_1 wrote:

And for that you’re going to fold your tent? OK, best of luck to you.

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No, I think the OP is going to fold his/her tent because s/he doesn't understand how sales tax is applied to a transaction. 

[caldreamer]

Sales tax is charged based on the shipping address.   And you can rest assured that EBAY has lawyers that drafted contracts with every state to charge correct amount of tax.

[kare-bearb]

The other responders have addressed your issue (from the seller's perspective) nicely.

So I'm gonna add the following, in case you have an issue as a buyer being charged the wrong rate:

If your state has varying county or city tax rates, 

make sure your shipping address includes your complete zip+4 code.

[fab_finds4u]

Ah but she's concerned eBay is charging her buyers too much sales tax which would make her ffv higher  should that be true.  A quarter of a percent is like a penny more ffv for a $25 sale.  eBay's not overcharging sales tax but if they were that would be quite  a windfall for eBay.

[monroe67]

Taxes = nonsense, when you only sell for fun ?!?!?  
I think the IRS and the taxing authorities in your state of North Carolina would find that amusing, if not something they want to investigate.  

The sales (or use) tax is paid by the buyer, anyway, and is based on the buyer's county/city tax rate.   Unless you are selling to a neighbor who lives down the street from you, It would be extremely coincidental for a buyer in another state to pay the same 6.75% that you do within your own county.  

You say your county charges 6.75% sales tax.  Some places in California, and I know at least one town in the state of Washington, have sales tax hovering around 10%.   Everybody in your county and those other places is fully aware that they will have to pay a little more than the $3.99 that may be printed on a bag of chips. 

Finally, after a few laws and one Supreme Court case, eBay finds that they also need to add sales tax to the cost of items sold here.   It's been going on for years, too, by the way.  

[jws43348]

In North Carolina there is NO sales tax on Motor Vehicles.  We pay a Road Use Tax of 3% of the purchase price NOT 7% as is the Sales Tax.  

[jws43348]

Road Use Tax in North Carolina is 3% for Motor Vehicles.  NO SALES TAX is collected on Motor Vehicles.  So if you were to purchase, say a Motorcycle for $20,000 eBay might collect $1400..NOT the $600 the buyer is obligated to pay.  

[kh-vince]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.