What we Need as Members to Enhance the Sales Tax Collection process by Ebay.

[mam98031]

In an effort to assist Ebay in seeing and knowing the issues we see with Ebay collecting sales tax for certain states I thought we could have a discussion about it so that Ebay knows our thoughts and concerns.

This is something Ebay has to do, so that isn’t the issue.  We may not like it, but they still have to adhere to the new laws.  Sellers and some buyers have specific needs that aren’t being met.  These needs have to be addressed as they are important factors.

Ebay is very much aware that there is room for improvement and I believe they are actively working on improving the process.  But just in case they haven’t thought of some issues, this discussion may help.

Here are some of the things I see in no specific order.

1. We need a way to submit our Resale Certificates so that Ebay has them on file.
2. We need a way to flag a purchase on Ebay to be for Resale so that we are not charged Sales Tax.
3. We need a report that shows by state what taxes were collected on our behalf. Some states require us to report this information.  Some of us have to report the full sale amount as a retail sale and then we can take a deduction for that sale because Ebay has taken the sales tax from the customer and remitted it to the appropriate state.  This report needs to give us the ability to get it by date range.  Some of us report to our states monthly, some quarterly and some yearly.  So we need flexibility in the report.

What do you see as an improvement or enhancement specific to Ebay collecting sales tax in various states?

[autopiacarcare]

It looks like we have some good news in the Spring Seller Update:

Easily access and download the Orders Report in Seller Hub

Starting in March 2019, you will be able to easily access and quickly download an Orders Report directly to your computer from the "Manage orders" page in Seller Hub. The Orders Report will help you manage your business on eBay more effectively by allowing you to efficiently fulfill your orders and maintain accurate records.

The Orders Report is a CSV (comma-separated) file that contains the data that appears in the Seller Hub "Manage orders" page, and more. For example, for each order, the Orders Report includes the name and address of the buyer, shipping address, price and quantity of items purchased, dates, and other details about the order. The Orders Report will also include a new field that shows how much tax eBay collected and remitted for each transaction in marketplace responsibility states.

In one click, you will be able to download all of your orders in the current results set. You will also be able to select individual orders and download only those orders.

[mam98031]

Maybe.  Hard to say since we can't access the details of the update, only the summary.

[blackranda2]

I am a bit confused about one thing said. I believe you said if eBay overcharges for the tax the overcharged amount will go to the state when eBay is audited. Is that correct? So how is that fair to the buyer that was overcharged? The state gets the extra tax dollars?  I am a Canadian seller and my buyers from King County are being charged 10% when their sales tax is 8.6%. And yes I know this for an absolute fact because I have been told so by them and have even seen their PayPal receipt verifying the 10% sales tax charge. This sales tax issue has become a bone of contention for me as the whole thing seems so messed up it is putting a damper on every sale I make to a US buyer who has to pay sales tax. And it is going to get worse as more states get added to the list.  Something seems so wrong about it that I am seriously considering not shipping to the US in the future. Sales to US buyers have gone down so much since it started as it is. If this drop in US sales trend continues, I have to ask myself if selling to the US is worth the dilemma? Not fair to US buyers as they didn't make the laws.  I know many will think I am overreacting and perhaps I am but one has to follow that they believe in.

[slippinjimmy]

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@blackranda2 wrote:

I am a bit confused about one thing said. I believe you said if eBay overcharges for the tax the overcharged amount will go to the state when eBay is audited. Is that correct? So how is that fair to the buyer that was overcharged? The state gets the extra tax dollars?  I am a Canadian seller and my buyers from King County are being charged 10% when their sales tax is 8.6%. And yes I know this for an absolute fact because I have been told so by them and have even seen their PayPal receipt verifying the 10% sales tax charge. This sales tax issue has become a bone of contention for me as the whole thing seems so messed up it is putting a damper on every sale I make to a US buyer who has to pay sales tax. And it is going to get worse as more states get added to the list.  Something seems so wrong about it that I am seriously considering not shipping to the US in the future. Sales to US buyers have gone down so much since it started as it is. If this drop in US sales trend continues, I have to ask myself if selling to the US is worth the dilemma? Not fair to US buyers as they didn't make the laws.  I know many will think I am overreacting and perhaps I am but one has to follow that they believe in.

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There are different rates for different communities within King County.

You can check the rate for a specific address / zip+4 here:

https://webgis.dor.wa.gov/taxratelookup/SalesTax.aspx

[blackranda2]

Okay, I used the provided link and checked the tax rate for my most recent buyer's purchase by their  address. It said the amount of tax should be 5.37 in CAD but the buyer was charged 6.24 in CAD? So this means they were overcharged on the tax doesn't it? I think I may have read on another site that processing fees may be charged by the marketplace facilitator for collecting the tax.  Anyone know if that is what could be happening?

[mam98031]

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@blackranda2 wrote:

Okay, I used the provided link and checked the tax rate for my most recent buyer's purchase by their  address. It said the amount of tax should be 5.37 in CAD but the buyer was charged 6.24 in CAD? So this means they were overcharged on the tax doesn't it? I think I may have read on another site that processing fees may be charged by the marketplace facilitator for collecting the tax.  Anyone know if that is what could be happening?

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What is "CAD"?

Your other posts were about Washington state sales tax.  What Jimmy said is correct.  There are variable rates all over the state.  King County being the largest population here and the tax rate there is 10.1%.

[blackranda2]

Really? Then why did the tax rate table using her address say it it should have been 5.37 in CAD which is 8.6% not 6.24 in CAD which is 10%.  CAD means Canadian dollars. Same as USD means United States dollars.  I list on ebay.ca so my listings are in Canadians dollars and then PayPal converts the payment to the correct currency when the buyer pays. My buyer also says her sales tax rate is 8.6%.  I think you may be wrong about King County being 10.1%?

[mam98031]

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@blackranda2 wrote:

Really? Then why did the tax rate table using her address say it it should have been 5.37 in CAD which is 8.6% not 6.24 in CAD which is 10%.  CAD means Canadian dollars. Same as USD means United States dollars.  I list on ebay.ca so my listings are in Canadians dollars and then PayPal converts the payment to the correct currency when the buyer pays. My buyer also says her sales tax rate is 8.6%.  I think you may be wrong about King County being 10.1%?

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Like many states, the SS varies across the state.  Parts of King Count are as your customer stated and parts are not.  In the higher population, the higher the sales tax is in that county.

https://dor.wa.gov/sites/default/files/legacy/Docs/forms/ExcsTx/LocSalUseTx/LocalSlsUseFlyer_19_Q2_a...

I don't know if there is some agreement with the various states that Ebay collects money for to charge one rate for the entire state, but I suspect that may be the case.  However I do not have anything that verifies that.  It would make sense if there were so that it was not an undue burden on the company collecting the sales tax for all these purchases.

[blackranda2]

Hmm. I see. I guess I am having a hard time wrapping my head around the whole idea of my sales from Canada having US state sales tax  applied. Lets take a look at this from another angle using a make believe scenario.

If a buyer from the United States travels to lets say British Columbia, Canada and purchases something from a store while there, they are charged the 7% Provincial sales tax which is then remitted by the store to the applicable place in Canada not to the US government, right? So when buyer from the US goes to a Canadian listing in British Columbia on the internet are they not "virtually" travelling to British Columbia? If so then shouldn't the same 7% provincial sales tax be the sales tax charged? And shouldn't it be remitted to the Canadian government not the US government? And vice versa if a Canadian buyer goes to a US state either in reality or virtually shouldn't the same applicable sales tax rules apply? If I am missing something here please explain what it is.

[mam98031]

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@blackranda2 wrote:

Hmm. I see. I guess I am having a hard time wrapping my head around the whole idea of my sales from Canada having US state sales tax  applied. Lets take a look at this from another angle using a make believe scenario.

If a buyer from the United States travels to lets say British Columbia, Canada and purchases something from a store while there, they are charged the 7% Provincial sales tax which is then remitted by the store to the applicable place in Canada not to the US government, right? So when buyer from the US goes to a Canadian listing in British Columbia on the internet are they not "virtually" travelling to British Columbia? If so then shouldn't the same 7% provincial sales tax be the sales tax charged? And shouldn't it be remitted to the Canadian government not the US government? And vice versa if a Canadian buyer goes to a US state either in reality or virtually shouldn't the same applicable sales tax rules apply? If I am missing something here please explain what it is.

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If I were you, I would too.  But you are having the items delivered here within the state, so they are subject to our sales tax rates. 

If you were here visiting from Canada and purchased something, you would have to pay our sales tax.  There is no difference when you have your items mailed to a Washington address.  Just as if we were in BC and purchased something, we would be subject to your local taxes.  It is the same type of thing.

It isn't you traveling to the US that creates the debt to pay taxes, it is the address in which you receive the item.  You are receiving your stuff and a Washington address, therefore the tax is due.

I do understand why you are upset.  But it isn't going to change the fact that the tax is due per the new tax laws for our state and many others.  

You may want to check to see if there is a way for you to claim the taxes you have paid here in the US against your taxes there in Canada.  Maybe you can get a credit for them.  

[blackranda2]

I'm not sure you understood exactly what I was saying. I wasn't referring to the state sales tax I would have to pay if I purchased from a state which collects internet sales tax. I was questioning the state sales tax being charged when a buyer from a certain state purchases virtually from Canada. If this buyer bought the same item while they were physically in Canada they are not charged US state sales tax. Only when they are online. I think that is where there is a difference. I am totally fine with having to pay the applicable state sales tax when I am visiting the United States whether it is physically or virtually and make a purchase. That is the way it should be. And a US buyer should pay the applicable provincial sales tax when they are visiting Canada whether it is physically or virtually and make a purchase.  But when I am delivering an item purchased from Canada to the United States I just don't see how the applicable state sales tax can apply as well. Yes other countries collect customs fees and taxes if the item is over a certain value. If the US government wants to collect taxes in my opinion that is how it should be done not the way they are doing it. Seems like double dipping to me.

[blackranda2]

So maybe what I should have asked is if someone from the US buys a product while physically in Canada and then takes the product back to their home state, are they charged state sales tax then? Or are they only charged customs and import fees if the value is over their limit. If they aren't charged state sales tax in that case then why are they charged when buying online and the item is shipped to them. See what I m getting at here?

[mam98031]

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@blackranda2 wrote:

I'm not sure you understood exactly what I was saying. I wasn't referring to the state sales tax I would have to pay if I purchased from a state which collects internet sales tax. I was questioning the state sales tax being charged when a buyer from a certain state purchases virtually from Canada. If this buyer bought the same item while they were physically in Canada they are not charged US state sales tax. Only when they are online. I think that is where there is a difference. I am totally fine with having to pay the applicable state sales tax when I am visiting the United States whether it is physically or virtually and make a purchase. That is the way it should be. And a US buyer should pay the applicable provincial sales tax when they are visiting Canada whether it is physically or virtually and make a purchase.  But when I am delivering an item purchased from Canada to the United States I just don't see how the applicable state sales tax can apply as well. Yes other countries collect customs fees and taxes if the item is over a certain value. If the US government wants to collect taxes in my opinion that is how it should be done not the way they are doing it. Seems like double dipping to me.

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I think I understood your question fine.  This is NOT an internet tax.  It is a Sales Tax.  Sales tax is driven by the STATE in which it is DELIVERED.  It is NOT driven by the location of the buyer.

[blackranda2]

Isn't it actually an internet state sales tax? You didn't answer as to if the sales tax is charged or not if the buyer brings the item across the border themselves physically. I am going to search online and see if I can find an answer to this myself. That in a nutshell is where the dilemma is.

[slippinjimmy]

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@blackranda2 wrote:

Isn't it actually an internet state sales tax? You didn't answer as to if the sales tax is charged or not if the buyer brings the item across the border themselves physically. I am going to search online and see if I can find an answer to this myself. That in a nutshell is where the dilemma is.

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No it is NOT an "internet" sales tax, that is a description the anti-tax lobby put on it. It applies to anyone and any sales regardless if it was conducted online or offline.

You have posted a CAD amount which is meaningless, when you looked up the buyers location what PERCENTAGE was given as the correct rate?

Are you including shipping in your calculations?