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What in the world am I suppose to do with this sales tax? First time I ever seen this.

 I've lived in my home since 1962. It's full. I told my kids and grandkids that when I die you can get a dumpster and pitch. Everyone say's Are you kidding me? You have a fortune here. Decided to sell some. October 1st I received an offer thanks to ebay sticking it in there without my knowledge. I excepted and went to send an invoice and there is $3.44 extra on it for tax. This item was a charity item I received a long time ago and was exempt then and now being taxed? I have thousands of vinyl records I played for the last 60 years. Are they being taxed? Why would I want to pay taxes twice on my property or receive people's tax money for them? I want to erase the tax before sending the invoice.  Sorry this place is much more complicated than years ago. Thank you

Message 1 of 18
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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.

You are not being taxed; your buyer is paying for it.

 

A sales tax is on the transaction not on the item. Used items are not exempt.   

 

During the past year, there have been big changes in the way that states collect sales tax for online transactions. Apparently you live in one of the states that now collect sales tax on all internet transactions for taxable items.  For those states, eBay is automatically figuring and charging the tax, and is also doing the "paperwork" of submitting the funds to the state.  You cannot remove the tax.  Yes, a sales tax will be collected on all of your transactions even old vinyl.

 

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

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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.

Ebay doesn't have my state on there list but looking for answers, the internet does say it started yesterday.  I am going to offer the buyer an out if he wants and it needs to be put in all my auctions.  You'd think ebay would have done that already considering they seem to change my auctions because they know what's best for me. Thank you

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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.


@jitterbug2003 wrote:

Ebay doesn't have my state on there list but looking for answers, the internet does say it started yesterday.  I am going to offer the buyer an out if he wants and it needs to be put in all my auctions.  You'd think ebay would have done that already considering they seem to change my auctions because they know what's best for me. Thank you


It's not based on your state it's based on the buyers state.  There's no reason to offer the buyer an out if they haven't complained.   The item page would have show taxes would be charged on the shipping tab 

“Birth certificates show that you were born. Death certificates show that you died. Photographs show that you have lived.” -Unknown
Message 4 of 18
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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.

Yes, I just made my first purchase since it started in my state and it was very clear that I would be paying sales tax.

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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.


@jitterbug2003 wrote:

Ebay doesn't have my state on there list but looking for answers, the internet does say it started yesterday.  I am going to offer the buyer an out if he wants and it needs to be put in all my auctions.  You'd think ebay would have done that already considering they seem to change my auctions because they know what's best for me. Thank you


@jitterbug2003 

 

what do you mean by "offering and out"? Cancel the auction? Refund the tax out of your pocket?

Message 6 of 18
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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.

Also there is no reason to send the buyer an invoice.  eBay sends everything the buyer needs to pay and if you use calculated shipping it can actually mess that up to send an invoice 

“Birth certificates show that you were born. Death certificates show that you died. Photographs show that you have lived.” -Unknown
Message 7 of 18
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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.


@jitterbug2003 wrote:

Ebay doesn't have my state on there list but looking for answers, the internet does say it started yesterday.  I am going to offer the buyer an out if he wants and it needs to be put in all my auctions.  You'd think ebay would have done that already considering they seem to change my auctions because they know what's best for me. Thank you


 

Your buyer lives in a state that charges sales tax.  If he/she goes into a store and purchases something, he/she pays sales tax (if the state considers the item taxable).

 

Now , for your buyer, buying from eBay and other large online marketplaces (e.g. Amazon) will be like buying in a local store.  Sales taxes apply.

 

EBay is now required by law in the buyer's state to collect sales tax and remit that tax to the state.  There is no way eBay can offer your buyer an "out".

 

You will never receive the amount of sales tax.  It will automatically be deducted from the transaction, as per eBay's latest announcement:

 

https://community.ebay.com/t5/Announcements/New-Internet-Sales-Tax-changes-that-impact-you/ba-p/3028...

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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.


@jitterbug2003 wrote:

Ebay doesn't have my state on there list but looking for answers, the internet does say it started yesterday.  I am going to offer the buyer an out if he wants and it needs to be put in all my auctions.  You'd think ebay would have done that already considering they seem to change my auctions because they know what's best for me. Thank you


The sales tax is based on where the buyer has the item shipped, not where the seller is.

Yes, Ebay does mention the sales tax in the listings, it's under the Payments and Shipping tab.

 

 

 

 

 

 

Have a great day.
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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.

Thank you. I understand better. Think I will go shopping locally more. Not only is he getting charged 6.25 and 2 percent for county or city tax. Total 8.25 to buy a used item in taxes in ebay. And it's a cancer donation item from years ago he is paying for. What is this world coming to?

Message 10 of 18
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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.

Sales taxes have always been due in my state.  Unfortunately, too many people buying online never paid them when they filed their taxes, so the Supreme Court took care of that.

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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.


@jitterbug2003 wrote:

Thank you. I understand better. Think I will go shopping locally more. Not only is he getting charged 6.25 and 2 percent for county or city tax. Total 8.25 to buy a used item in taxes in ebay. And it's a cancer donation item from years ago he is paying for. What is this world coming to?


You need to understand that the tax is NOT on the item you sold, it is based on the sales transaction itself.  The requirement is set by the state the buyer lives in, not your state, although your state could be doing the same thing. 

----------------------------
Successful and experienced seller since 1997, over 70,000 feedback, boardie since the boards were begun.
Message 12 of 18
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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.


@jitterbug2003 wrote:

Thank you. I understand better. Think I will go shopping locally more. Not only is he getting charged 6.25 and 2 percent for county or city tax. Total 8.25 to buy a used item in taxes in ebay. And it's a cancer donation item from years ago he is paying for. What is this world coming to?


Sales tax is charged on each transaction. It doesn't matter if it's a used item that's been sold 22 times.

 

It doesn't matter that it was a donated item, if it gets sold, a tax is charged on it.

 

What this world is coming to, is states finally got tired of not being paid the taxes they were owed and passed laws to make sure they finally get paid. 

 

 

Message 13 of 18
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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.

What I'm not understanding is why there is an automatic sales tax charge occurring.  For instance, I'm in Texas.  The Texas Comptroller website indicates that a remote seller only has to charge tax if they made over $500,000 in the previous 12 months.  I'm nowhere close to that, but tax is now being automatically added to anything I sell.  I had someone who lives in Texas pretend they were going to buy something from me to see if the sales tax got listed, and it did.  Can someone help me understand what I'm obviously not understanding about the new policy/law?

Message 14 of 18
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Re: What in the world am I suppose to do with this sales tax? First time I ever seen this.

A remote seller means a seller in another state (remote) has to sell $500K into Texas to be required to collect the tax.
These states aren't looking at individual sellers on eBay, they are looking at eBay as a whole, just like they do Amazon.
eBay sales going into Texas are over $500k a year, therefore, eBay is required to collect the tax.
Our business is in Texas and California kept sending us letters to collect California sales tax, but we don't meat the thresh hold, therefore, we don't have to charge, collect and pay California tax, but eBay does.
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