The number one question about the new sales tax process

[dtexley3]

Why November????

I mean seriously, what site releases what appears to be a significant code change in the middle of the busiest time of the year?  eBay has had an exceedingly poor track record of late with site updates being released prematurely, so there's a potential that this could go south, quickly.

What's the rush?  Why can't this be released after Jan 1? Or at least on Dec 26th??? 

brian@ebay Please raise our concerns up the chain.  Maybe with Jordan Sweetnam, the new Senior Vice President and General Manager, Americas Market at eBay that just posted about how y'all know "how important sellers are to the site"??

[jesusrocks3339]

oh, btw
Why November???

prolly cuz people will still buy during the holiday rush and it won't be as noticeable how this is going down...

[the*dog*ate*my*tablecloth]

@jesusrocks3339 

The new cross border sales taxes are based on the BUYER's location. So the location of your seller is irrelevant.

Ebay does have a process now for sellers to apply for sales exempt purchases. I believe you need a certificate that says you are eligible for tax free purchases. It sounds like you may just have to reapply.

[jesusrocks3339]

I could try to reapply I guess, however I may just be wasting my time.
I asked the CS rep to check my account and she said that it was valid and the eBay was not charging the tax, but the seller were....(LOL!)

So my cert is valid according to her, it is just those mean 'ole sellers.
unless they fix it, I am done and many months I would buy about $5-$10K in items, the tax will kill small margin type sales.

And if is does for others, I am guessing it may kill my sales on items that are similar. Silver Bullion sales and that sort of thing will only go to states that are totally tax exempt. I will have no way to designate the differences that my state has in it's Bullion Tax Dealer laws, not for eBay sales I am sure. So even if it totally illegal to collect tax on a .999 silver bar in MN, it will be done on this site .

[brian@ebay]

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@jesusrocks3339 wrote:

that is funny Brian.   How it won't affect me.   My sales have tanked and I am no longer able to buy on eBay because most of the business I do where I make 10% on an item will no longer be profitable.  

sounds like the pitch I got from the outsourced rep this morning.  I asked why my sales tax exemption would no longer apply.  She said it was not eBay charging the tax but the seller.. give me  a break already.   I tried giving the rep the low down (after she helped me figure it out) but nooo.   that is gonna suck to have to give out a line everybody, and one that clearly did not make sense to even rep I was talking too, but it would have gone off script to actually acknowledge the problem.

which is... my sales tax exemption no longer applies to most states I am buying from...

Is there a list so we can plug that in on the side like choosing (for example) US states only NO TAX ??? Has anyone compiled that list yet?  I guess I will be doing that later today, something to check for I guess.

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Hi @jesusrocks3339, I apologize if there has been a misunderstanding. It sounds like you are referring to being tax exempt as a re seller. If so, you can go here to start the process of becoming tax exempt. If I'm misunderstanding your post, then please let me know. 

[nuclearomen]

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@the*dog*ate*my*tablecloth wrote:

@jesusrocks3339 

The new cross border sales taxes are based on the BUYER's location. So the location of your seller is irrelevant.

Ebay does have a process now for sellers to apply for sales exempt purchases. I believe you need a certificate that says you are eligible for tax free purchases. It sounds like you may just have to reapply.

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you apply for a "re-sellers licence" (it's not called that in every state but that's what it is), here in WY it's $60 to apply, everyone gets it, the point is in every state that has passed the new tax laws they want everyone to register and there will be no penalties in most states for doing it voluntarily, if you wait to long til it's really enforced by each state you can be penalized. The licence will allow you to file with ebay for the tax exempt purchases but they must be business related expenses (such as stock for your store, shipping supplied etc...). Of course not everyone needs this licence, for instance if you are registered business and not a individual seller you don't need this, you already have the business tax ID which you would need for tax exempt purchases. 

[brian@ebay]

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@dtexley3 wrote:

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brian@ebay wrote:

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@dasarock wrote:

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brian@ebay wrote:

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@the*dog*ate*my*tablecloth wrote:

brian@ebay  What does "payment settled in Paypal" mean? Is that before it hits the seller account?

Sellers right now are not paying fees on sales tax for Managed Payments and Paypal but come November 1st sellers will all of a sudden be required to pay fees on that amount, even though the change is just a processing change?

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Hi @the*dog*ate*my*tablecloth, a settled payment refers to a payment that has fully processed and finalized. PayPal could probably give a more detailed definition as well. 

 That is correct. Beginning November 1, the gross amount of a buyers payment (item cost, shipping cost, and sales tax) will be sent to the sellers PayPal account (if they aren't in managed payments). PayPal processing fees will be applied to the gross amount (which includes sales tax). 

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brian@ebay 

hi again brian.  you didn't mention just how exactly, if the taxes are given to the seller and paypal fees charged on all …. just how is ebay going to recoup these taxes from the seller and pay them under the marketplace facilitator laws …?  how is this going to happen?

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Hi @dasarock, I apologize if my previous comments weren't clear on this. While I'm not certain what level of detail you are looking for, I can confirm that as soon as the payment settles, PayPal will automatically deduct the sales tax from the payment and it will be remitted it to the appropriate tax authority. Sellers do not need to take action on their part as this will be done automatically. 

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brian@ebay So are you saying that Paypal will be remitting the Sales tax to the states on behalf of eBay?  Interesting to say the least.  I would assume that this would imply that eBay and Paypal have entered into an agreement that designates Paypal as the sales tax "processor" on behalf of eBay when Paypal is the seller's payment processor?

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Hi @dtexley3, while I do know that sales tax will automatically be deducted for remittance to the applicable taxing authority after the payment settles, I do not have details to provide beyond this. What I can say, and what is most pertinent to sellers, is that tax will automatically be deducted for remittance to the applicable taxing authority after the payment settles.

[jesusrocks3339]

I have already done this.  The eBay rep looked at my account, and I was not charged sales tax on any purchases last month.  

However now I am being charged, even though I have a valid sales tax exemption on file.     I really do not think I should have to reapply, and according to your rep I am already exempt however the sellers are charging me anyways.

she said it is up to the sellers .  they decide

[jesusrocks3339]

oh, maybe I do have to reapply. Sad that the rep had not a clue on what she told me. Nor did I know when I made the bid of $300 on the sale today and went through with the purchase paying the $20 tax and using up my eBay bucks I just got.

otherwise I would have applied for the new exemption form and kept my bucks longer.

did not know I would have to reapply.

I am sure I am not the only one finding out the hard way. At least I can tell others I guess.

but how do you figure it out if ebay reps do not know how to assist and you do not come to the community pages? You end up paying tax you should not have to? Or just give up on buying?

The other issue is that the reps just say to look under whatever seller you are buying from, if it says sales tax may apply then it may. That is what she told me to to figure out who I would have to pay tax from.

those mean 'ole sellers again....

[jitterbug2003]

Not me. I would go to the yearly meeting where I can take the podium and get my two cents in. Problem is they are all yippees with no experience and have no idea how to make e-bay great again.

[nuclearomen]

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@jesusrocks3339 wrote:
oh, maybe I do have to reapply. Sad that the rep had not a clue on what she told me. Nor did I know when I made the bid of $300 on the sale today and went through with the purchase paying the $20 tax and using up my eBay bucks I just got.

otherwise I would have applied for the new exemption form and kept my bucks longer.

did not know I would have to reapply.

I am sure I am not the only one finding out the hard way. At least I can tell others I guess.

but how do you figure it out if ebay reps do not know how to assist and you do not come to the community pages? You end up paying tax you should not have to? Or just give up on buying?

The other issue is that the reps just say to look under whatever seller you are buying from, if it says sales tax may apply then it may. That is what she told me to to figure out who I would have to pay tax from.

those mean 'ole sellers again....

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a lot of CS reps don't know what they are talking about, it's best to come to the community prior to calling sometimes.

[birdhousemarketplace]

"PayPal will automatically deduct the sales tax from the payment and it will be remitted it to the appropriate tax authority. Sellers do not need to take action on their part as this will be done automatically. "

Uh, excuse me. I thought ebay was handling the sales tax?? Is Paypal going to do this on ANY income they process?

[nuclearomen]

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@birdhousemarketplace wrote:

"PayPal will automatically deduct the sales tax from the payment and it will be remitted it to the appropriate tax authority. Sellers do not need to take action on their part as this will be done automatically. "

Uh, excuse me. I thought ebay was handling the sales tax?? Is Paypal going to do this on ANY income they process?

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they already do it, they did it on a sale I had last night... the sale was $60, the total charged to buyer was $63 and change, I got $57 and change Paypal took $2 and change, no I wan't charged on the tax, Ebay charged me the normal 9.15% on the sale. 

[buyselljack2016]

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@birdhousemarketplace wrote:

"PayPal will automatically deduct the sales tax from the payment and it will be remitted it to the appropriate tax authority. Sellers do not need to take action on their part as this will be done automatically. "

Uh, excuse me. I thought ebay was handling the sales tax?? Is Paypal going to do this on ANY income they process?

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That is what has been explained. We will pay fees on total buyer payment. Will start in Nov.

[jesusrocks3339]

🙂

[jesusrocks3339]

I know, it is really hit or miss, thanks!!