Sales tax . . . the problem has begun

[k-mansparts]

SCOTUS  has ruled 

the problems will be enormous 

[abfabvintage]

@nowthatsjustducky

Thanks for the positive reply. I just looked it up...a Baltimore Sun article from 2014. Yes, they have some kind of warehouse in Southeast Baltimore City. Plus for Maryland, found that if  I sell to a buyer in Maryland (has never happened), I would have to charge sales tax. So it seems, but not researching the new rules, selling Maryland to Maryland=charge sales tax. All others=don't have to.

[fjbet13]

Should say seller doesn't pay sales tax

[ersatz_sobriquet]

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@fjbet13 wrote:

The seller does pay the sales tax the buyer does. However, the seller is responsible for collecting the sales tax from the buyer and remitting it to the taxing jurisdiction 

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Yes, and ebay will have to figure this out, not sellers. Ebay will add it to the buyer's bill. Now how it will affect sellers is the big question. I don't believe ebay will be able to add it to the fvf on shipping because that would be double taxation. 

[abfabvintage]

@the*dog*ate*my*tablecloth

Thanks. I brought it up cause I just looked at Amazon site...there is a section about tax and Prime which I didn't bother to click on. I only clicked on the generic sales tax section. So I assumed there may be something different for Prime since they set up a section related to Prime. 

[fuestor0]

If eBay creates a system to collect it, or automatically have it applied across the board, without the seller having to report it, i am ok with that.I am not ok with having to do it all myself. 

[rustyrail]

It is not simply a matter of filing sales tax receipts for every state. We would have to determine every sales tax receipt for every community that the sale originated in. This would result in each seller having to file potentially thousands of sales tax reports. Additionally, every seller would have to obtain Sales Tax Permits from every State. 

If eBay wants to stay in business, then eBay will have to develop a workable solution for this problem.

Otherwise most sellers will simply go out of business. 

So, what is eBay going to do????

[the*dog*ate*my*tablecloth]

Regardless, this is small potatoes when compared to the income tax question. Many sellers have posted on the forum about not paying income tax. Two States already have dropped their reporting requirements to anyone selling over $600. 

The potential percentage charged is much higher than sales tax. The marketplace is rapidly changing and sellers will need to keep up.

[mjjb_56]

I will just walk away from selling period. My items are things from around the house or from clearing out my late fathers estate. 

[the_sole_train]

This is just my opinion, but I think while States may have been losing out on collecting some sales tax, they have also benefited from ecommerce.  Even though my state (WA) has lost out on sales tax from items I shipped to other states, I have more income to spend locally, not to mention all the other ancillary businesses that benefit (shipping/USPS/FedEx/packing supplies).  If all these small sellers went out of business along with losing shipping jobs, many of those people would put an extra strain on their State unemployment, etc.  

[tealt]

@trinton

Question #1:

What will US eBay sellers now need to do about collecting sales tax for sales in states where they do not have a physical presence?  

Question #2:

When can sellers and buyers expect eBay to comment on this Supreme Court decision?

[grasshopperx]

The big get richer, and the little guy gets the shaft. This will put all the small sellers out of business. Millions and bazillions will be lost in revenue in the long run. Its GREED as usual. The only one who will survive will be Amazon and big sellers like that. Unless there is a small seller exemption.  People buy online to avoid sales tax. Now they wont buy on line.  Kiss ebay, etsy and sites like that goodbye. Alibaba here we go.

 A better solution would have been a flat sales tax across the board. That companies like ebay could collect. Total ruin . The big guys win again!

[the*dog*ate*my*tablecloth]

I don't think people are going to stop buying online because of sales tax. Sellers may lose money and have to charge less to compensate but I don't think it will affect buyer behavior. People come to Ebay to buy things they can't get elsewhere. That's not going to change.

I don't see Amazon complaining that their sales are down because they're now charging sales tax. I think most people see it as inevitable.

I think what will happen is the marketplaces will have to charge and remit the sales tax for everyone. That's what I read in the PA Department of Revenue letter I got.

[goodluckselling]

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@courtneypmbowie wrote:

I wanna know how the h-e-double hockey sticks we are supposed to figure all this out and implement it. Idiots... they [goverment, courts] never think in realistic practical terms.

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There are a lot of ideas being worked out for the past few years.  Here are a few I recall.

• First instead of having  10,000+ different rates for every county they (congress) are considering a flat rate for all Internet purchases.
• The congress has been thinking about a govt form we download or upload info into that will calculate this
• A congressional enacted online sales tax system by which the online seller is taxed at there home states rate not the buyers rate.  This would make B&M businesses and online business all on a level playing field.

There is a lot more to be done before any tax will be required.  Congress will now have to address the ruling and create and pass legislation that is fair to the entire nation.   Who knows how many president's will come and go before such a historical occasion could happen?

Right now states have the right to collect sales tax but that does not mean we the sellers have to do this for them.  The ruling gives them the right.  It does not give them any power over online sellers outside of there borders.

I suspect this will take several years to work out the details in the mean time, buyers are subject to pay state sales tax for online purchases, not sellers. 

Since eBay is going to its own payment processor they are the ones collecting payment and it would seem they would be the collectible sales tax so they will more than likely create a system to collect and submit these taxes on behalf of its sellers.

Good Luck Selling!

[ersatz_sobriquet]

Good. I want to get the heck out of here before a couple years is up anyway. 

[tnfoggymountainsales]

I'll bet the China shippers are laughing all the way to the bank as now they can tax all their customers and who is going to China to audit and collect the tax that they received from their customers. OH WELL I THINK I'LL GO TO THE ZOO AND ASK THE MONKEY'S WHAT THEY THINK ABOUT IT. MAYBE THEY CAN GET A GOVERNMENT JOB AS THIS RULING WILL NEED MORE GOVERNMENT EMPLOYEES. BIGGER GOVERNMENT WILL COST MUCH MORE THAN THESE TAXES WILL GENERATE.