Texas Sales Tax - Exemption for small sellers...

[daisypap]

So I just purchased a used fragrance product from a New York seller (who has only 25 feedback).  This person is obviously just a small infrequent seller and is selling her own personal product.  I live in Texas and had to pay sales tax on a used product even though Texas seems to have an exemption for small sellers:  

TEXAS:  Beginning Oct. 1, 2019, the Comptroller will enforce the collection obligation on sellers whose only activities in the state are the remote solicitation of sales. The Comptroller has provided a safe harbor for remote sellers. The Comptroller will not require remote sellers with total Texas revenue of less than $500,000, in the preceding twelve calendar months, to obtain a permit or collect and remit sales and use tax.

Seems unfair to charge sales tax on a sale where the seller is not a reseller or a business.  

Does anyone have any information on this and why Ebay is charging sales tax on these small sales and sellers?  

[mypostingid15]

ebay is collecting the tax, not the seller.

[daisypap]

I know Ebay is collecting the tax but Ebay is not the seller.  There is an exemption for small sellers.  Surely, eBay can determine whether a seller has a certain volume of sales to determine whether sales tax should be collected.  If I have sales of $500 in a year, I am not required to collect and pay sales tax in Texas.  

[pink.fish.rule]

That's ONLY if you're not selling on a venue like ebay.

[loveyourimagination49]

This is a tax, paid by the buyer. You state is the one receiving money from your purchase. It has nothing to do with the sellers.

[buyselljack2016]

@daisypap 

Small seller rules do not apply to purchases made/sales made on eBay.

Sales to Texas on the eBay site exceed the $500,000 mark.

Many threads about this.

[nobody*s_perfect]

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@daisypap wrote: ... Does anyone have any information on this and why Ebay is charging sales tax on these small sales and sellers?  

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Because eBay is the "marketplace facilitator" collecting the taxes.  Texas is one of the 34 states which require eBay to collect sales tax for all sales to state residents.

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

https://community.ebay.com/t5/Announcements/UPDATE-Ongoing-Changes-in-How-Internet-Sales-Tax-May-Imp...

[klhmdg]

Internet Facilitators must now charge tax to the buyers in many states.

eBay (and many other online venues) must charge tax and send it to the states.

Look up Internet Fascinator tax and the state where you have your items shipped. 

The sellers had nothing to do with this nor did eBay. Thank your elected officials.  

[tealt]

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@daisypap wrote:

Does anyone have any information on this and why Ebay is charging sales tax on these small sales and sellers?  

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Because your Texas state legislature passed a Marketplace Facilitator law.

That law requires large marketplaces (e.g. eBay, Amazon, Etsy) to collect sales tax for sales made via their sites when the item is shipped to a Texas buyer.  It matters not whether the seller is large or small or where they are located

[7606dennis]

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@daisypap wrote:

I know Ebay is collecting the tax but Ebay is not the seller.  There is an exemption for small sellers.  Surely, eBay can determine whether a seller has a certain volume of sales to determine whether sales tax should be collected.  If I have sales of $500 in a year, I am not required to collect and pay sales tax in Texas.  

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Actually, under the marketplace facilitator law, I believe the exemption for low volume sellers is a moot point since the facilitator is considered the seller of record in such cases.

With regard to whether or not you are required to collect or pay sales tax in Texas, would depend upon whether you are exempt as a buyer for some legitimate reason and/or if the sale is made outside of a facilitator site that meets Texas' volume threshold.

[richard1rst]

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@klhmdg wrote:

Thank your elected officials.  

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And the lesson is that the most dangerous place in the world is between a politician and a source of state's tax revenue.