06-21-2018 08:49 AM
Now that the Unites States Supreme Court allows all states to collect sales tax on all online sales by a 5 to 4 vote, how are we as small businesses going to be able to stay in business. It will be impossible for me as a small business to process sales tax payment for every entity in every state in the United States.
Only large corporations with huge resources will be able to comply with this ruling.
Question -
Would it be possible for eBay to collect and process the sales tax from all of our sales?
Any thoughts or Suggestions ????
06-22-2018 06:49 AM
According to Stuart Varney on Fox News and Fox Business New this morning small etailers will have to collect and remit sales tax for over 12,000 entities across the United States. He also indicated that there is no remedy in sight for this situation.
His guest also indicated that almost every state will implement requirements that online sellers to
collect and remit sales taxes very shortly.
Basically it seems that the SCOTUS ruling is a DEATH NAIL to small retailers!!
Advantage Brick and Mortar and large online sellers.
06-22-2018 06:51 AM
According to Stuart Varney on Fox News and Fox Business New this morning small etailers will have to collect and remit sales tax for over 12,000 entities across the United States. He also indicated that there is no remedy in sight for this situation.
His guest also indicated that almost every state will implement requirements that online sellers to
collect and remit sales taxes very shortly.
Basically it seems that the SCOTUS ruling is a DEATH NAIL to small retailers!!
Advantage Brick and Mortar and large online sellers.
06-22-2018 07:08 AM
@somanypostcards wrote:This decision is NOT just for large businesses. I took the time to read the entire 41-page US Supreme Court South Dakota v. Wayfair, No. 17-494. In it they say "South Dakota affords small merchants a reasonable degree of protection." That protection is South Dakota sales of $100,000 or 200 transactions. I am a high volume, low cost seller. It's entirely possible that I could have 200 SD transactions sell for a quarter each, so that the $48.00 from these sales would mean I would have to collect and pay taxes to South Dakota. Pennsylvania and Washington have laws (beginning in 2018, I believe) requiring collection of sales tax. These laws are now valid, since the Supreme Court, as of today, says that even if you do not have a physical presence in a state you can be required to collect sales/use tax. Amazon and Etsy collect the sales tax for PA and WA and send it to these 2 states, so their sellers don't have to worry. eBay does not provide this service at present.
Exactly!
Small business are NOT put in the same situation as large businesses, having some degree of protection.
Thank U!
06-22-2018 07:41 AM
Ignore it! If as a small seller in Virginia you sell 2 or 3 items a year to buyers in Florida do you really think that the state of Florida will take the time and resources to track you down and try and collect those few dollars from you. That will never happen. They will go after the big sellers who sell hundreds of thousands of dollars in the state. The only way you will pay is if ebay collects the tax and pays it for you.
06-22-2018 07:43 AM
06-22-2018 08:24 AM
Sorry Diva,
Just jumped onto your thread and this is not meant towards or for you, but if I attached to the Ebay Tylers thread it may have caused issues.
First, How funny now that Ebay wants to classify us all as small businesses they [Ebay] just provides a platform for so NO TAXATION.......but Ebay continues to make moves to treat us all as one "EBAY" by generic store fronts, forced Ebay rules telling us how to run our businesses like forced returns. We are not really a bunch of small business.....we are 1099 employess...that is what Ebay has done.
So yes, let Ebay deal with the metrics of collecting taxes and disributing them to the perspective states. If Ebay wants to treat me as a small business and let me set my own policies and they just provide the platform, then I will be glad to pay ebay to deal with tax collection part of this.
I SEE ANOHTER MONEY GRAB FOR EBAY and lots of problems to go with it.
Now the second part, I really don't think internet taxation on good purchased is a bad thing. The logistics will be a bit hairy but when figured out will help all I think.
Have a good day
Rich
06-22-2018 09:37 AM
To be clear, the ruling applies to all businesses, large and small. However, the court suggests that small businesses may be able to claim exemption based upon some other case law (ie de minimis, cost benefit, etc). So, it has left the door open to future cases where a state law without floors might be challenged. For today, nothing to do (other than lobby Congress to intervene). Stay tuned.
06-22-2018 09:51 AM
Tyler,
eBay will need to come up with a remedy QUICKLY!
According to Stuart Varney on Fox News and Fox Business New this morning small etailers will have to collect and remit sales tax for over 12,000 entities across the United States. He also indicated that there is no remedy in sight for this situation.
His guest also indicated that almost every state will implement requirements that online sellers to
collect and remit sales taxes very shortly.
Basically it seems that the SCOTUS ruling is a DEATH NAIL to small retailers!!
Advantage Brick and Mortar and large online sellers.
So, I will need a way to apply all the tax rates for every city and municipality and entity across the entire United States in order to list an item and comply with the requirements that are coming from every state to collect sales tax on all items. Ebay currently does not have that provision for our listings. Case in point to begin with is South Dakota. Therefore, I will have to indicating in all of my listings that I do not sell to anyone from South Dakate.
Any suggestions Tyler???
06-22-2018 11:19 AM
@caninekopz wrote:Sorry Diva,
Just jumped onto your thread and this is not meant towards or for you, but if I attached to the Ebay Tylers thread it may have caused issues.
First, How funny now that Ebay wants to classify us all as small businesses they [Ebay] just provides a platform for so NO TAXATION.......but Ebay continues to make moves to treat us all as one "EBAY" by generic store fronts, forced Ebay rules telling us how to run our businesses like forced returns. We are not really a bunch of small business.....we are 1099 employess...that is what Ebay has done.
So yes, let Ebay deal with the metrics of collecting taxes and disributing them to the perspective states. If Ebay wants to treat me as a small business and let me set my own policies and they just provide the platform, then I will be glad to pay ebay to deal with tax collection part of this.
I SEE ANOHTER MONEY GRAB FOR EBAY and lots of problems to go with it.
Now the second part, I really don't think internet taxation on good purchased is a bad thing. The logistics will be a bit hairy but when figured out will help all I think.
Have a good day
Rich
😉
06-22-2018 02:13 PM
I agree Ebay should collect and pay sales tax, in fact some states pay the collector a small percentage of the receipts. Or, Ebay could charge all sellers a small fee per month.
06-22-2018 03:04 PM
06-22-2018 03:51 PM
I think we all have to ask ourself. IS IT WORTH IT ?
06-22-2018 04:16 PM
Not sure if this address the OP. But the answer is yes it is worth it. (My opinion of course)
As a Brick and Mortar store and an online retailer, I see both sides of the story.
We have consumption taxes across the country in most if not all corners of the US. Why should an electronic venue be abscent of a consumption tax.
We use the infastructer of Electric, TV, Cable, Gas, roads and everything in between. Yes I know we pay consumption taxes in these venues as well, but why not here. Why have an unfair advantage over a Brick and Mortar store who is forced to have things sit on shelves to compete.
Now I am not a tax-a-holic. I prefere not to be taxed, but it is a neccessary evil. I sell things in my store, charge tax, and then will ship it for you anywhere you want. What is different than selling on Ebay/Amazon ?
Now the collection and how the proceedes are divvied up are another problem but I am sure it will be figured out. I just never could figure out why one selling venue would have a government supported advantage over another, escpecially when it comes to taxes.
Rich
06-22-2018 04:29 PM
Have you stopped to consider that eBay will just take it and remit it for you? They will take it from your proceeds, like they do all the other fees. You wont have a choice.
06-22-2018 04:32 PM
Florida will ask eBay to do it.