Sales tax

[rgbsr65]

I sell from Oregon we have no sales tax. EBay adds sales tax to my sales and charges me 12.9%. We do not tax out of state purchasers. Why does EBay ?, except to charge me higher fees?

[slippinjimmy]

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@rgbsr65 wrote:

I sell from Oregon we have no sales tax. EBay adds sales tax to my sales and charges me 12.9%. We do not tax out of state purchasers. Why does EBay ?, except to charge me higher fees?

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eBay does it because they are REQUIRED by LAW to do so as approved by the Supreme Court.

Google Wayfair Decision for more details.

[monica-sells]

You are mistaken...

eBay is required to charge sales tax based on the buyer's location....

"...We do not tax out of state purchasers..." 

citation needed for this statement

[iamalwaysright]

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@monica-sells wrote:

You are mistaken...

eBay is required to charge sales tax based on the buyer's location....

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I haven't been paying attention to my sales. So does that mean when my buyers from Oregon buy from me, I don't charge them any sales tax?

[heckofagame]

Correct, Oregon buyers are not charged sales tax. 

[nobody*s_perfect]

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@iamalwaysright wrote: ...  does that mean when my buyers from Oregon buy from me, I don't charge them any sales tax?

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It means that eBay doesn't charge them any sales tax.

[monica-sells]

You, as a seller, do not charge anyone sales tax....

eBay, as the market facilitator, charges sales tax...

the charge is based on the buyers location, regardless of your location.

If the buyer is in Oregon and you are in Oregon, the buyer is charged "0" sales tax

If the buyer is in Idaho and you are in Oregon, the buyer is charged whatever the sales tax would be in the location (city, county, state) of that buyer

If the buyer is in Oregon, (or ANY sales tax free locale) they are not charged sales tax regardless of your location (seller).

[iamalwaysright]

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@heckofagame wrote:

Correct, Oregon buyers are not charged sales tax. 

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Wow I just checked and you're right. Now I wish all my buyers are in Oregon. I'll make more money that way.

On the flip side if I lived in Oregon I'd always be angry whenever I go to a different state on vacation paying lousy sales taxes. Stay home Oregonites.

[monroe67]

"I sell from Oregon we have no sales tax. EBay adds sales tax to my sales and charges me 12.9%."

That is mostly true.  I know you're upset about the sales tax.  
But, ever since last Wednesday, February 15, 2023, eBay categories that were subject to a 12.9% Final Value Fee (FVF) are now subject to a 13.25% FVF.  Plus $0.30 per order.  Just want to be completely accurate.  

"We do not tax out of state purchasers. Why does EBay ?, except to charge me higher fees?"

Again:  eBay is required to charge sales tax.  It is the LAW. 
Per the Wayfair decision from the Supreme Court.  That decision created a new classification:  the Marketplace Facilitator.  eBay is a Marketplace Facilitator.   eBay facilitates business between you, in Oregon, and buyers within, at least, the other 49 states, and possibly many other countries as well.  

eBay adds sales tax to your sales when the buyers live in states/counties which do have sales taxes.   And the buyer pays that sales tax.  

I know you don't pay sales tax there in Oregon.  You might not realize, therefore, that those of us who do live in states that tax our purchases (by means of a sales tax) are completely familiar with sales taxes.  We expect them.  We can calculate the sales taxes in our heads.  

People who live in Los Angeles, California, for example, pay 10% sales tax whenever they buy a 36-pack of toilet paper at Costco or t-shirts for their children at Walmart.  People who live in Iowa may pay a lower percentage of sales tax, but they also have to pay sales tax when they buy anything from their local Walmart stores.  

Turn the tables 180 degrees.  I am in Southern California, in a county with 7.75% sales tax.   If somebody who lives in Los Angeles buys one of my items, that buyer will pay the LA sales taxes of 10% (or so).  

If YOU buy one of my items and want the item mailed to you in Oregon -- because YOU live in Oregon, YOU are not charged sales tax.   

As for the fees that eBay charges -- yes, eBay does charge their fees to sellers.  
As some posters look at it, though, wise sellers will make sure their buyers pay the eBay fees, because those sellers add enough to their pricing to cover the fees that eBay will retain.  

[albertabrightalberta]

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@rgbsr65 wrote:

I sell from Oregon we have no sales tax. EBay adds sales tax to my sales and charges me 12.9%. We do not tax out of state purchasers. Why does EBay ?, except to charge me higher fees?

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Ebay isn't charging you sales tax. Ebay is collecting sales tax from your buyers based on their state's sales tax. 

You are paying FVF on the total amount of your buyers' payments which includes item price + shipping + sales their state sales tax for their purchase.

[dentalsales4u]

I'm from Oregon and now live in Texas.

At first it bothered me when I would buy something and had to pay a sales tax, but on the bright side, my pay check didn't have state tax taken out of it.

They get their money one way or another 🙂

[richard1rst]

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@monica-sells wrote:

You are mistaken...

eBay is required to charge sales tax based on the buyer's location....

"...We do not tax out of state purchasers..." 

citation needed for this statement

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Separate and distinct from any sales we make on eBay, which is to say any sales I make off of my own independent web site, Nevada stipulates that I ONLY have to charge sales tax on sales made in Nevada. All out of state sales are non-taxable. Again, only sales made through my own site.  On my quarterly report those are listed as non-taxable sales.

[m60driver]

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@richard1rst wrote:

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Separate and distinct from any sales we make on eBay, which is to say any sales I make off of my own independent web site, Nevada stipulates that I ONLY have to charge sales tax on sales made in Nevada. All out of state sales are non-taxable. Again, only sales made through my own site.  On my quarterly report those are listed as non-taxable sales.

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Correct, it is nearly impossible for a retailer to figure out and collect the sales tax on an out of state purchase and pay each and every state.  It is the responsibility of the buyer to report such purchases and pay the sales tax.  This does not often happen for individuals but it is a favorite target for state auditors when looking at a small business operation.  My old retail store was subject to such audits every few years and they were always looking for online purchases that were not taxes.

[monica-sells]

@richard1rst 

same here in ohio....(with my stand alone website)

I am obligated to charge sales tax for "in-state" purchases, but as of this date, I do not meet thresholds for other states sales to require filing.

I am sure that "loophole" will be closed within a year or two, and we will all have to subscribe to or purchase software to collect sales tax from other jurisdictions...(but I certainly hope the wheels turn slowly on that)

the OP indicated "ebay sales", so we just have to make sure erroneous info is not getting tossed out here.....

[iamalwaysright]

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@dentalsales4u wrote:

I'm from Oregon and now live in Texas.

At first it bothered me when I would buy something and had to pay a sales tax, but on the bright side, my pay check didn't have state tax taken out of it.

They get their money one way or another 🙂

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Right. That's why I mentioned if anyone still lived in Oregon and vacationed in a different state with sales tax. You'd be paying double sales tax. So in this case, they get their money TWO ways or another 🙂