eBay

biggzack · ‎04-05-2020

Today i'm completely confused about the sale taxes

I'm coming to get a sale from a US citizen and he was charged for tax and it was deducted by paypal then collected by eBay, so in the other hand i had to ship for my customer his item from china and the platform that i'm dealing with it they charged me again for US tax so it's like this tax was collected and remitted twice, once by eBay and second by the worldwide platform that i'm dealing with, and who's the aggrieved in this business is the seller
Any explanation about this matter ?

Thanks

slippinjimmy · ‎04-05-2020

This is one of the pitfalls of dropshipping when your dropshipper is based in the USA (but shipping from China).

Paranoia strikes deep
Into your life it will creep

orangehound · ‎04-05-2020

It is two different taxes ... sales taxes (collected by the state) and import duties / taxes (collected by the US Federal government).

slippinjimmy · ‎04-05-2020

@orangehound wrote:
It is two different taxes ... sales taxes (collected by the state) and import duties / taxes (collected by the US Federal government).

In this case I don't think import duty/tax have anything to do with it.

OP appears to be buying from a dropshipper based in the USA who is required to collect sales tax but when the OP makes a sale to a US buyer eBay is also required to collect sales tax.

The OP might be able to file an exemption form with the dropshipper but they would have to be registered in all the States that the dropshipper is adding sales tax (which might be all of them that have sales tax).

Paranoia strikes deep
Into your life it will creep

luckythewinner · ‎04-05-2020

@biggzack wrote:
Today i'm completely confused about the sale taxes
Any explanation about this matter ?

For most US states, every transaction is charged sales tax based on where the item is being shipped.

In your case, there are two transactions:

a) the buyer's purchase from you, which shows the buyer's address.

b) your purchase from your supplier, which also shows the buyer's address.

Because there are two transactions that show they are being shipped to the buyer's state, both of them are subject to sales tax based on the buyer's address.