mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@thevintagesilvershop wrote:
@bossdog22 wrote:This is Bossdog1955. On 5-17-202 I posted a Comment about eBay charging too much tax. I WANT TO RETRACT MY COMMENT AND CLEAR IT ALL UP. Today I called eBay and a representative told me that there is a service fee on the tax because eBay, on behalf of the seller, collects and pays the tax to the applicable State. Doing this takes the burden of collecting and paying taxes off the Seller, which I appreciate. AND to the people who have been correcting me as to the tax rate state, etc., I researched the Tax Amount issue thoroughly but due to so many people telling me I was wrong, I called eBay to to make sure I am doing this correctly. The representative verified that I am doing it correctly because the tax rate is determined on whether the seller's State is an Origination State or a Destination State. If it is an Origination State (which NM is), then the tax rate is the NM tax rate. I even called the NM Taxation Department and they too verified that I am doing it correctly.
The above is ONLY if you are shipping out of state on your own and NOT through Ebay. NM is an origination-based state which means you'd charge the NM tax rate if you ship out of state.
Selling through Ebay is completely different. They follow the marketplace facilitator laws. If you sell to someone in Tennessee, they will be charged Tennessee's tax rate. If you sell, via Ebay, to someone in New Mexico, they will be charged the appropriate NM tax rate.
That info you supplied above is incorrect. Sales tax is NEVER EVER driven by the location of the seller. It is ALWAYS by the location of the buyer when shipping the item is involved. If an item is shipped by a seller in NM and the buyer location is also NM, then NM sales tax applies. But if the seller is in NM and the buyer is in Texas, Texas sales tax applies.
If the seller is selling from their own website or something other than Ebay or another marketplace and if the seller that is in NM is selling enough items into Texas to meet the sales tax thresholds in that state, then they would charge collect and remit that sales tax to Texas. Otherwise if they are under the threshold the seller doesn't have to collect it.
@bossdog22 wrote:This is Bossdog1955. On 5-17-202 I posted a Comment about eBay charging too much tax. I WANT TO RETRACT MY COMMENT AND CLEAR IT ALL UP. Today I called eBay and a representative told me that there is a service fee on the tax because eBay, on behalf of the seller, collects and pays the tax to the applicable State. Doing this takes the burden of collecting and paying taxes off the Seller, which I appreciate. AND to the people who have been correcting me as to the tax rate state, etc., I researched the Tax Amount issue thoroughly but due to so many people telling me I was wrong, I called eBay to to make sure I am doing this correctly. The representative verified that I am doing it correctly because the tax rate is determined on whether the seller's State is an Origination State or a Destination State. If it is an Origination State (which NM is), then the tax rate is the NM tax rate. I even called the NM Taxation Department and they too verified that I am doing it correctly.
If your payments are being processed by PP, then the ONLY fee you have on sales tax is the PP fee. Ebay does NOT charge any fee on sales tax at all to the seller. The CSR you spoke to was incorrect. Sales tax has NEVER been dependent on the sellers location. FYI, If you purchase something from a seller in Australia and have it shipped to NM. You pay the NM rate of sales tax NOT Australia's. Where the product comes from bears NO WEIGHT in the amount of sales tax due. It never has.
Think of your local Walmart. They have plenty of things that come from out of state and out of the country. You do NOT pay sales tax based on where those products came from, you pay sales tax based on where you are when you purchased the item.
Now when you enter MP that will change. But for normal Ebay right now with PP as your payment processor, Ebay does NOT charge any kind of fee to sellers regarding sales tax.
