Sales Tax to WA

[capt.steel]

I went to send an invoice to a Buyer today and see there is tax added automatically onto the total for their state (WA @ 10.09%) 

Sadly this puts the tax charge at almost as much as my shipping charge!

I just sent a similar purchase (a book) to WA in January of this year - the Buyer paid before I could send them an invoice.  When I went to check that Buyer's Paypal payment I noticed there was no sales tax charged.

So does this mean sales tax to WA is only tacked onto a Buyer's total if you send an invoice, but if they just pay directly as soon as the auction is over, they avoid the sales tax?  Should I stop sending invoices?

P.S. In the future, can I just delete the sales tax that eBay is automatically charging to Buyers in their invoices by just applying to same amount to the discount option at the bottom of the invoice or is that illegal?

[capt.steel]

I went to send an invoice to a Buyer today and see there is tax added automatically onto the total for their state (WA @ 10.09%) 

Sadly this puts the tax charge at almost as much as my shipping charge!

I just sent a similar purchase (a book) to WA in January of this year - the Buyer paid before I could send them an invoice.  When I went to check that Buyer's Paypal payment I noticed there was no sales tax charged.

So does this mean sales tax to WA is only tacked onto a Buyer's total if you send an invoice, but if they just pay directly as soon as the auction is over, they avoid the sales tax?  Should I stop sending invoices?

P.S. In the future, can I just delete the sales tax that eBay is automatically charging to Buyers in their invoices by just applying to same amount to the discount option at the bottom of the invoice or is that illegal?

[buyselljack2016]

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@thevintagesilvershop wrote:

I actually get 8.2% (3.20/39).  How'd you do your calc?

PS:  Referring to post 12

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?????

[capt.steel]

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@lacemaker3 wrote:

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@capt.steel wrote:

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Thanks!  I'm just wondering how a Buyer from this year (also in WA) made a Paypal payment without any tax added onto the total?  According to the Paypal record they only paid the item cost plus the shipping.  This was the person who paid before I could send them an invoice.

Also, are buyers from certain states aware a tax charge will be added on and do they know exactly what they'll be asked to pay beforehand (depending on their maximum bid plus shipping for auctions)?

i.e. Will the sales tax come up on the screen when they enter their bid with the message that tells them that when they bid they agree to purchase the item if they win so they know what the grand total will be with the tax?

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Just to make sure the earlier answers are clear.

Your earlier buyer was charged the sales tax, but it was charged by and paid to eBay, not to you. So you didn't see it then, and you won't see it in the payment you receive from your current buyer either.

The payment you receive in PayPal only includes the payment that was made to you. The buyer was also charged for the sales tax, which shows as a separate transaction in the buyer's PayPal, and that payment was sent to eBay, so you don't see it (or anything about it).

The amount of the sales tax is shown on the checkout page, before the buyer commits to buy the item. They can see exactly how much they will be charged, which is the correct amount for the type of item they are buying (based on the item's category) and the buyer's shipping location. The buyer sees the total amount, for price plus shipping (if any) plus sales tax, and that's how much they pay when they buy the item. Then, when the buyer pays, PayPal divides the payment up and sends the seller's part to the seller's account, and the sales tax to eBay's account.

You don't need to send invoices to buyers most of the time, and you shouldn't do it except in unusual situations. Only if you need to lower the shipping cost for some reason, or combine shipping. Otherwise, you should set the listing up correctly, so the shipping cost is calculated correctly, and then let the eBay process handle it. 

Definitely for buyers in WA, you should NOT be sending invoices or changing the shipping costs if you can help it, because WA charges sales tax on shipping. So if you change the shipping costs, then things can get very confusing. I believe the invoice that is actually sent recalculates the sales tax if you change the shipping cost, but it has been reported that it doesn't show that to the seller, only to the buyer. I don't know if that has been changed recently.

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This pretty much answered all my questions.  Excellent explanations!

I'm glad potential Buyers can see what their total will be (including tax) before they commit their bid - I was worried Buyers that are charged sales tax upon completion of an auction might become angry to see additional dollars suddenly added onto the total and feel the Seller defrauded them by not having these charges within the auction - but it sounds like eBay is automatically notifying them of what their total will be when they bid.  (This reminds me I'll have to keep my eyes open if I'm the Buyer to see if my state is charging tax!)

Thanks to everyone that responded with the helpful posts! 

[lilbama911]

What is the 2019 Washington Sales Tax Rate?

6.50%
2019 Washington state sales tax
Exact tax amount may vary for different items

[thevintagesilvershop]

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@buyselljack2016 wrote:

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@thevintagesilvershop wrote:

I actually get 8.2% (3.20/39).  How'd you do your calc?

PS:  Referring to post 12

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?????

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I was referring to post 12 and now realize the other poster was referring to the OP's percentage rate.  My apologies if I caused you too much concern and trauma this afternoon. 

[mam98031]

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@lilbama911 wrote:

What is the 2019 Washington Sales Tax Rate?

6.50%
2019 Washington state sales tax
Exact tax amount may vary for different items

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See post 15.

However I should have added that the 6.5% is the base rate for the state.  It does not include city and county taxes too.  So it is important to remember that Ebay has to charge the full sales tax rates, including city and county.

I'm not aware of different rates for different items, you'd have to be more descriptive.

[mam98031]

Some additional info that may help.

https://www.avalara.com/taxrates/en/state-rates.html?CampaignID=7010b000000eOI6AAM&lsmr=Paid%20Digit...

[capt.steel]

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@thevintagesilvershop wrote:

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@buyselljack2016 wrote:

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@thevintagesilvershop wrote:

I actually get 8.2% (3.20/39).  How'd you do your calc?

PS:  Referring to post 12

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?????

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I was referring to post 12 and now realize the other poster was referring to the OP's percentage rate.  My apologies if I caused you too much concern and trauma this afternoon. 

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Just for clarity - when I went to send the invoice (I never sent it, BTW, after seeing the sales tax and came here instead...) I saw the tax charge was listed at 10.09% and the item is a book being sent to an address in Tacoma, WA 98418-6846.  

[mam98031]

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@capt.steel wrote:

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@thevintagesilvershop wrote:

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@buyselljack2016 wrote:

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@thevintagesilvershop wrote:

I actually get 8.2% (3.20/39).  How'd you do your calc?

PS:  Referring to post 12

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?????

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I was referring to post 12 and now realize the other poster was referring to the OP's percentage rate.  My apologies if I caused you too much concern and trauma this afternoon. 

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Just for clarity - when I went to send the invoice (I never sent it, BTW, after seeing the sales tax and came here instead...) I saw the tax charge was listed at 10.09% and the item is a book being sent to an address in Tacoma, WA 98418-6846.  

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Tacoma is 10.10 %

[buyselljack2016]

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@thevintagesilvershop wrote:

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@buyselljack2016 wrote:

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@thevintagesilvershop wrote:

I actually get 8.2% (3.20/39).  How'd you do your calc?

PS:  Referring to post 12

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?????

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I was referring to post 12 and now realize the other poster was referring to the OP's percentage rate.  My apologies if I caused you too much concern and trauma this afternoon. 

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No trauma:)   Just hard for anyone to respond to a post when the wrong post/no post is referenced/quoted.

[pburn]

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@mam98031 wrote:

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I'm not aware of different rates for different items, you'd have to be more descriptive.

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It wouldn't apply here on eBay, but, along with the State, my city has a sales tax. Not only that, but it's what I'll call a "two-tiered" sales tax. On top of a 5.5% State sales tax and a 1.5% city sales tax, there is an "occupation tax" of another 2% on restaurant and bar food and beverages, hotel rooms and rental vehicles to pay for a sports/event arena. Also, one of our shopping malls wanted to build something they couldn't afford (a parking garage, maybe?) and received approval for another 1% tax on gross receipts of each merchant in the mall (which is, of course, charged to the customer). My city also has a 6% tax on certain telecommunications services/equipment.

Although the above examples would have nothing to do with eBay sales (except maybe the telecommunications equipment), the point is that many governmental entities have strange little quirks on the things they tax. That's why some people specialize in tax law! LOL!

[mam98031]

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@pburn wrote:

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@mam98031 wrote:

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I'm not aware of different rates for different items, you'd have to be more descriptive.

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It wouldn't apply here on eBay, but, along with the State, my city has a sales tax. Not only that, but it's what I'll call a "two-tiered" sales tax. On top of a 5.5% State sales tax and a 1.5% city sales tax, there is an "occupation tax" of another 2% on restaurant and bar food and beverages, hotel rooms and rental vehicles to pay for a sports/event arena. Also, one of our shopping malls wanted to build something they couldn't afford (a parking garage, maybe?) and received approval for another 1% tax on gross receipts of each merchant in the mall (which is, of course, charged to the customer). My city also has a 6% tax on certain telecommunications services/equipment.

Although the above examples would have nothing to do with eBay sales (except maybe the telecommunications equipment), the point is that many governmental entities have strange little quirks on the things they tax. That's why some people specialize in tax law! LOL!

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It works the same way in WA.  The state sales tax is 6.5%, then on top of that comes the City and County taxes for the grand total for the WA sales tax.  Ebay is charging for all THREE portions of the sales tax, which is appropriate.

It's the government, of course there are "strange little quirks"!  LOL

[buyselljack2016]

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@pburn wrote:

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@mam98031 wrote:

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I'm not aware of different rates for different items, you'd have to be more descriptive.

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It wouldn't apply here on eBay, but, along with the State, my city has a sales tax. Not only that, but it's what I'll call a "two-tiered" sales tax. On top of a 5.5% State sales tax and a 1.5% city sales tax, there is an "occupation tax" of another 2% on restaurant and bar food and beverages, hotel rooms and rental vehicles to pay for a sports/event arena. Also, one of our shopping malls wanted to build something they couldn't afford (a parking garage, maybe?) and received approval for another 1% tax on gross receipts of each merchant in the mall (which is, of course, charged to the customer). My city also has a 6% tax on certain telecommunications services/equipment.

Although the above examples would have nothing to do with eBay sales (except maybe the telecommunications equipment), the point is that many governmental entities have strange little quirks on the things they tax. That's why some people specialize in tax law! LOL!

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Here clothing up to a certain price is "state sales tax" exempt, but all clothing is "taxed" at the county sales tax rate.

[mam98031]

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@buyselljack2016 wrote:

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@pburn wrote:

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@mam98031 wrote:

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I'm not aware of different rates for different items, you'd have to be more descriptive.

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It wouldn't apply here on eBay, but, along with the State, my city has a sales tax. Not only that, but it's what I'll call a "two-tiered" sales tax. On top of a 5.5% State sales tax and a 1.5% city sales tax, there is an "occupation tax" of another 2% on restaurant and bar food and beverages, hotel rooms and rental vehicles to pay for a sports/event arena. Also, one of our shopping malls wanted to build something they couldn't afford (a parking garage, maybe?) and received approval for another 1% tax on gross receipts of each merchant in the mall (which is, of course, charged to the customer). My city also has a 6% tax on certain telecommunications services/equipment.

Although the above examples would have nothing to do with eBay sales (except maybe the telecommunications equipment), the point is that many governmental entities have strange little quirks on the things they tax. That's why some people specialize in tax law! LOL!

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Here clothing up to a certain price is "state sales tax" exempt, but all clothing is "taxed" at the county sales tax rate.

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In Washington there is no tax exemption for clothing.

[urbanrummage]

Good answers in this forum! I hate that our taxes are so high, and I hope that I don't lose out on some of my bottom line because of this new law, but being a seller I am quite happy that eBay is taking care of collecting the tax on my behalf! Just sell away and report quarterly zeros!

[soh.maryl]

Just to clarify, you do know that the state sales tax is charged to the BUYER and is based on the address to which the item is shipped, right?

You do not really have to do anything except it would be a good idea if you would familiarize yourself with the fact that eBay is collecting and remitting state sales tax to the appropriate state department.