02-13-2019 10:37 PM
I sold something to a buyer in Washington state recently and I just got a message from the buyer advising me that the tax they were charged was incorrect and demanding that I refund them the difference in the tax amount they feel they should have been charged. They inserted a web address to the state tax info in the message as well. I'd like to avoid the situation escalating; thoughts on how to proceed?
02-13-2019 10:49 PM
My understanding is that EBay calculates and collects the tax, and you never handle/have access to the monies yourself?
Dear Buyer,
I understand that the new tax laws covering internet sales are an unpleasant change for everyone involved. Please be advised, however, that EBay collects these taxes and disburses them to the appropriate states. I never handle or have any access to these monies. Please call EBay with your concerns at XXX-XXX-XXXX. I’ve enjoyed working with you and hope we have the opportunity to do business again.
Your Seller
02-13-2019 10:55 PM
Maybe they think shipping isn't taxable (it is!).
02-13-2019 11:23 PM
Some people are reporting that Ebay is charging a 10% sales tax in the state of WA. While some of our counties do have that high of a rate, most don't. So I'm not at all sure that Ebay has got this quite right just yet.
Yes, for WA state residence the sales tax would be figured on the entire invoice to include shipping as well.
02-13-2019 11:35 PM
@this*old*attic wrote:My understanding is that EBay calculates and collects the tax, and you never handle/have access to the monies yourself?
Dear Buyer,
I understand that the new tax laws covering internet sales are an unpleasant change for everyone involved. Please be advised, however, that EBay collects these taxes and disburses them to the appropriate states. I never handle or have any access to these monies. Please call EBay with your concerns at XXX-XXX-XXXX. I’ve enjoyed working with you and hope we have the opportunity to do business again.
Your Seller
That's perfect, @this*old*attic
02-13-2019 11:35 PM
@slippinjimmy wrote:Maybe they think shipping isn't taxable (it is!).
Right as rain, Jimmy!
02-14-2019 02:29 AM
redrose has a great response. You are one seller among many that are having this problem.
https://www.ecommercebytes.com/C/blog/blog.pl?/pl/2019/2/1549947765.html
02-14-2019 04:55 AM
I assume this is correct. If so, I would add some wording to reflect that they can claim a credit for the error on their state income tax forms. As far as I know, all states that have a sales tax allow this.
02-14-2019 05:35 AM
Tell them to call the state or ebay, it has nothing to do with you. You don't see, touch, collect or otherwise get or hold any of that money. Nor could you.
02-14-2019 07:09 AM
02-14-2019 07:40 AM
02-14-2019 08:40 AM - edited 02-14-2019 08:42 AM
@tunicaslot wrote:redrose has a great response. You are one seller among many that are having this problem.
https://www.ecommercebytes.com/C/blog/blog.pl?/pl/2019/2/1549947765.html
@Anonymous (note to self, always read to the end of the article before posting) EBay may want to think about having a page for buyers that detail who to contact and what to ask regarding sales tax issues by state. The seller could then send that link to the buyer.
02-14-2019 12:49 PM
@cwcsports wrote:
Chances are your buyer is not going to want to go to the trouble of having to call ebay or the state. If it is a very small amount you may be better off just refunding them and taking the loss.
Absolutely NO WAY would I ever do that!
02-14-2019 12:53 PM
02-14-2019 01:09 PM
@cwcsports wrote:
Chances are your buyer is not going to want to go to the trouble of having to call ebay or the state. If it is a very small amount you may be better off just refunding them and taking the loss.
Please NOOOOOOOOOOOOOOOOOOOOOO!
Washington State residents and all those living in States that are going to be collecting taxes on interstate transactions (as authorized by the SUPREME COURT) just have to get used to the fact that the days of Sales Tax evasion (yeah evasion not avoidance) are coming to an end.
If you had a B&M store and a customer was paying for an item and said "I don't want to pay sales tax" would you just say, "yeah ok, I'll take it out of my pocket"?
Note that I said "evasion" because the people who are complaining are the ones that fraudulently and falsely failed to report and pay Use Tax via their State tax return AS REQUIRED BY LAW.
If residents accurately self-reported Use Tax none of the current mess would be required.