eBay

flight74722 · ‎12-11-2018

Under the new tax laws.Is there a tax on shipping if you include the shipping price in with the item price. In other words free shipping. Thanks.

thevintagesilvershop · ‎12-12-2018

@thevintagesilvershop wrote:
Also, if you live in Ft Collins, as noted on your listing, the sales tax to be collected for state, city, county is 7.3%.

I just looked it up, Ft Collins is a home rule city, so what you submit to the state will be different than what I quoted above. You will also have to have a city tax license there and submit taxes directly to the city. This is ONLY if you live in the city limits.

Your situation is complicated. Talk to the CPA.

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lacemaker3 · ‎12-11-2018

Some states charge sales tax on the purchase price only, and some states charge sales tax on the total amount = purchase price plus shipping.

If the item has "free shipping" then sales tax is charged on the purchase price ino matter what the shipping costs. You can 't subtract off the cost of shipping and charge sales tax on the remainder, if that's what you were thinking.

lisa5768 · ‎12-11-2018

Hi, each state has it's own rules about taxing shipping charges, however if the cost of shipping is included in the price then it will be taxed since there is no seperate charge.

lisa5768
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flight74722 · ‎12-11-2018

That is what I was thinking. But to make it clear, If I use free shipping there is no tax on shipping,except for the state tax that I ship to. Thanks.

sam9876 · ‎12-11-2018

Huh?

flight74722 · ‎12-11-2018

Hi. I had called ebay about this problem concerning Tax on shipping. They said, if I moved all my items to free shipping, then I could avoid the tax on shipping. But I would have to pay the sales tax. I guess what got me concerned was that some states want tax on shipping, even if the item has the shipping included in the price.Thanks.

the_fancy_fox · ‎12-11-2018

@flight74722 wrote:
Hi. I had called ebay about this problem concerning Tax on shipping. They said, if I moved all my items to free shipping, then I could avoid the tax on shipping. But I would have to pay the sales tax. I guess what got me concerned was that some states want tax on shipping, even if the item has the shipping included in the price.Thanks.

Ah no. As a seller you don’t pay the sales tax, the buyer does.

some states tax shipping and some don’t. I live in California. If the shipping is called out on the packing slip it’s not taxable (handling is though so if shipping and handling is combined it ALL taxable)

I have no doubt eBay is going to push Free Shipping! (Even though that’s a total lie...) since it will make it a lot easier for them to collect sales tax across the board.

The Race is over
The Rats won.

flight74722 · ‎12-11-2018

Yes, the buyer pays the sales tax. However the tax on shipping. If the shipping is included in the sale price, is there a tax on shipping. Thanks.

southern*sweet*tea · ‎12-11-2018

Some states tax the entire amount, price plus shipping. My state (MS) does. Other states tax only the item price. If you add your shipping costs into the item price (as you should) and offer "free" shipping, then obviously tax is being charged on shipping, only it is not separate as would be item price plus shipping.

YOU don't pay sales tax, the buyer does.

The easier you are to offend the easier you are to control.

We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did. - Thomas Sowell

slippinjimmy · ‎12-11-2018

eBay has been pushing "free shipping" for the past 15 years, nothing at all to do with taxes, they do it because buyers love it and most of the competition offer some form of "free shipping".

flight74722 · ‎12-11-2018

What is FVF

slippinjimmy · ‎12-11-2018

Final Value Fee = The amount eBay charges on the final sale price (and shipping if it's extra).

lacemaker3 · ‎12-11-2018

@flight74722 wrote:
Yes, the buyer pays the sales tax. However the tax on shipping. If the shipping is included in the sale price, is there a tax on shipping. Thanks.

The buyer pays all the sales tax. As long as the listing is set up to charge sales tax. You have to set it up correctly to charge sales tax on shipping, or not, depending on the rules for each state that you have to collect sales tax for. (You have to be registered with the state before you can legally collect any sales tax for that state.)

If the invoice shows purchase price plus shipping, and the state charges sales tax on shipping, then the buyer pays sales tax on the total.

If the invoice shows purchase price w/o shipping (free shipping) the buyer still pays sales tax on the total.

If the cost of shipping is included in the purchase price, then the sales tax is calculated on the purchase price only. There is no additional sales tax based on the actual amount paid for shipping.

You are way over thinking this. You're making it much harder than it really is.

flight74722 · ‎12-11-2018

Thank you. I just didn't want to get cought up in Some states want tax on shipping and some don't. If I had included the shipping in with the item for sale. Thanks.