Taxes

[jazzyboo]

Hi:

Just wondering if anyone can help me with this.  I just sold 2 items, 1 to MN and 1 to NY.  Ebay did not take taxes out on either item so I am wondering why and what I should do at this point about the taxes.  If this should happen again should there be something I should be doing.  Thanks a lot everyone for your assistance.

[stainlessenginecovers]

Yes, they did. Customers from those states buy; they pay item + shipping + tax. Ebay removes your fees (final Value) and Sales Tax Collected and gives you the rest in your Managed Payments.

Why do you think they did not collect? 

[fab_finds4u]

eBay takes the sales tax from the buyer's payment and sends it to the buyer's state.  It's not money you collect  and disburse. You had no part of the collection and disbursement of sales tax.  You're not involved with sales tax except you paid the final value fee on the buyer's total payment which includes the sales tax.

[maxine*j]

All states with a sales tax exempt many items from the tax, usually things like certain medicines, clothing. school supplies, groceries, and other basics/essentials.  So, perhaps the items were simply non-taxable.

None of the items you have currently listed would be taxable in PA, where I live, which exampts "Underwear such as lingerie, girdles, garters and garter belts, stockings, hosiery, pantyhose and 'peds'," per a recent tax bulletin.

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[jazzyboo]

It was clothes so I don't know why they didn't take the taxes, maybe the person had a tax exemption. I'm just not sure.

[slippinjimmy]

Two possibilities.....

1 - you are not looking in the right place, you need to look at the fee details specifically "fees based on" part, that will show if buyers were charged Sales Tax or not.

2 - Some items are not taxable in some States, if you list in the correct Category eBay will usually observe the exemption

3 - Your buyers are resellers who have filed a Sales Tax exemption form with eBay...

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#section2

Bottom Line: You don't need to do anything!

[jazzyboo]

Maybe that's it because they did take the taxes on the other items.  It was clothes so I don't know.  I just don't want to get in trouble.

[maxine*j]

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@jazzyboo wrote:

Maybe that's it because they did take the taxes on the other items.  It was clothes so I don't know.  I just don't want to get in trouble.

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You will not get into trouble.  eBay collects and remits the sales taxes, so there will not be a problem for you.

No two states have exactly the same exemptions.  In some states with clothing exemptions, the exemption is based on the cost of the item, rather than the type.  (So, a $20 bra could be non-taxable but a $200 bra would be.)  Some states exempt all clothing, while others exempt only children's clothing.  And on and so on.  Just relax and let eBay's massive databases with all this info do the work. 

Or, as you said, the buyer might have a resale number and not have to pay sales tax on items being purchased for resale.  But, again, that's in eBay's databases, so you have no worry.

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[nobody*s_perfect]

You won't get in trouble. It's eBay's responsibility to charge and forward the sales tax funds.

In NY, most clothing is not subject to the statewide sales tax, though local taxes might apply:

https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/clothing_and_footwear.htm

[jazzyboo]

Thanks everyone for all of the help, I really appreciate it. Blessings.