State Sales Tax

[mylovingcats1]

Hello All- the state of MI will require online sellers to collect sales tax starting Oct 1, 2018. I already collect  the MI sales tax. My question- How is eBay going to handle all different state sales taxes? Does anyone know? 

[klhmdg]

Nothing...

 it is not about “sellers”. It is all large online marketplaces must collect use taxes and send to the states from buyers in those states.

The seller has nothing to do with it. 

Internet Marketplace Facilitators must collect use tax from buyers and send to that state. 

[kaylarobert4cash]

ok correct me if I am wrong here, so you are saying no personal info is sent to my state when I sell an item on ebay and the buyer pays the state tax, ebay sends it to
ok and nothing or where it came from is involved? because when I read, ebay stated we will collect state taxes when or if due for that state on behalf of the seller?

[kaylarobert4cash]

I agree! I keep reading if you dont have a physical presence dont worry about it but whoever they are,are talking out both sides of their mouth lol because just when I read one thing, I read another and it is just the opposite. just want a run down detailed what is going on with this

[kaylarobert4cash]

ps I dont have a physical p. and they already took takes out on my behalf! geez!i just want to know what that entails?i dont want surprises from the sate or federal in any way.i read, if you aren't sent anything dont worry ok right!

[kaylarobert4cash]

ok so another words I am not involved in anyway right. my name will not appear to my state with any personal info

[kaylarobert4cash]

ok thank you! I will sleep better tonight !lol I would love to be a big time seller and I work hard 1005 in good standing with ebay and I take it very seriously! maybe I keep pushing I will be up there with the big dogs lol

[klhmdg]

eBay collects the use tax from buyers on states that have this law in place.

The new use tax law has nothing to do a sellers.

Sellers will not even see the tax, it is sent directly to the buyer on their invoice 

[counselortim58]

I have been paying an income tax on items which I sell from my state of VT.  I figure this is prudent given the information is passed on to state tax departments.  For me it amounts to very little.  My concerns currently are as follows:

What I am concerned about is that sales is, as of July 1, now being added to the final cost and is not being addressed to the buyer prior to sale.   I personally would prefer this information up front.

My other concern is that sales tax is being calculated based on shipping and handling (S&H) as well as item cost.  Should this be happening?  My understanding is that S&H is a service; much like auto mechanics don't charge tax on their service, only the parts that are installed.  Never seen anything on my postal receipt indicating tax on my postage when I go to the post office.

[the*dog*ate*my*tablecloth]

@counselortim58 

Check out this link from the VT government that talks about shipping

https://tax.vermont.gov/business-and-corp/sales-and-use-tax/faqs

[7606dennis]

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@counselortim58 wrote:

I have been paying an income tax on items which I sell from my state of VT.  I figure this is prudent given the information is passed on to state tax departments.  For me it amounts to very little.  My concerns currently are as follows:

What I am concerned about is that sales is, as of July 1, now being added to the final cost and is not being addressed to the buyer prior to sale.   I personally would prefer this information up front.

My other concern is that sales tax is being calculated based on shipping and handling (S&H) as well as item cost.  Should this be happening?  My understanding is that S&H is a service; much like auto mechanics don't charge tax on their service, only the parts that are installed.  Never seen anything on my postal receipt indicating tax on my postage when I go to the post office.

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As a seller you would be required to include income from your sales activity on your federal and state (if your state has one) income tax return.  If you are keeping accurate books you can reduce your tax burden by subtracting expenses from your gross income from the sales.

Sales/use tax is a tax owed by the buyer and only collected and remitted by the seller.

[counselortim58]

Thanks for the link. I will address with my state tax dept. when I contact them again. May still make no sense to me, but if that is how the states see it who am I to ague. Thanks again.

[getfree*]

it time  to quit selling ,,close  up ,, and take it easy …. they made the decision for  me ….

[getfree*]

it (the taxes) will cause  everyones sales to slump and  any "best offers"  for your  items 

will be  lower as the buyer tries to cover the tax costs …   its time  after 21 years for me  to

pull the  plug and quit ,, enough is enough  !

[csbbct]

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@counselortim58 wrote:

What I am concerned about is that sales is, as of July 1, now being added to the final cost and is not being addressed to the buyer prior to sale.   I personally would prefer this information up front.

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This information is available to the buyer in the listing, although it's not in an obvious place - click on the Shipping and Payments tab and you'll see a section for taxes that says "Taxes may be applicable at checkout" with a "Learn More" link.  If you click on the link and scroll down, you will find a table that lists all the states with dates for when sales tax will be collected.  Because it's so difficult to find, months ago I added this to my listing terms - "eBay may collect sales tax for those states requiring them to do so.  Check the Shipping and Payments tab for the list of those states." 

[kh-vince]

Hi everyone,

Due to the length of time that has passed since this thread began, we have locked it from future replies. If this is still an issue that warrants discussion, don't hesitate to begin a new thread here.

Thanks.