05-11-2017 07:11 PM
I received a message from Ebay about tax permits. Is anyone familiar with this since I am dropshipping from Amazon? I am just passing taxes to the buyers of what I am charged. Anyone knows what to do?
05-11-2017 07:14 PM - edited 05-11-2017 07:18 PM
You can ONLY collect tax from the state in which you're located or have a physical presence. Then you would need to remit the sales tax collected to the correct states.
No, it does NOT include dropshipping since you are the seller and it's your location that counts.
05-11-2017 07:16 PM
Which includes dropshipping, where the tax burden is simply passed along. There should be no need for permits. The supplier is collecting the tax.
05-11-2017 07:18 PM
05-11-2017 07:20 PM
05-11-2017 07:22 PM
You're receiving the payment from the buyer, so you're collecting the tax. If you weren't, eBay would never have asked for the info.
05-11-2017 07:27 PM
Has nothing to do with Ebay from a responsibility standpoint. Just more evidence of an increasingly over-regulated society destined for implosion. Not even to mention this is just another effort by Ebay to stangle sellers. They have no idea how much they will be losing on this one.
05-11-2017 07:31 PM
05-11-2017 07:45 PM
After you've collected sales tax from buyers, you then need to remit those funds to the various states. Sale tax is a pass through tax... you don’t get to keep it.
Most states consider it illegal to collect sales tax without a permit.
05-11-2017 07:46 PM
wow lol http://cgi.ebay.com/ws/eBayISAPI.dll?ItemSalesTaxTable&item=251909521866
(FYI MS state tax is 7%, not 8%, and I see a whole bunch of rates that are way wrong)
I hope they start contacting all those Chinese sellers who charge 25% tax for their tax permits....
05-11-2017 07:56 PM
Who is charging you? Not Amazon?
If you're saying you are being charged a sales tax by the state you're in, and you're passing this on to the buyer, 2 things are likely needed. 1) tax rate the buyer needs to pay, not just something you would pass on as an additional charge, 2) schedule of payment made to your state. You collect "X" amount, not near "X", almost "X", or close to "X". It is then incumbant upon you to pay "X" amount.
I would suspect the permit applies to one of those two, or both??
05-11-2017 07:58 PM
If you are buying something at retail and are charged a sales tax, you need to include that expense in the price you offer.
The best thing you can do right now is to remove the taxes from all your listing, increase your prices and save some money for an accountant and a criminal defense attorney because I sent your listing to by state's Department of Revenue, and they will ask you where is their money, especially after you charge significantly more than the going tax rate. You should also shop for some soap on a rope, you're going to need it.
05-11-2017 08:52 PM
Why are you charging sales tax for Oregon? We do not have a sales tax here.
05-11-2017 09:00 PM - edited 05-11-2017 09:01 PM
"Why are you charging sales tax for Oregon? We do not have a sales tax here."
He's not? He's charging you the tax rate in his state/county that he has to pay? It's not your location, it's the sellers? Or at least it better be!!
I can go to Oregon, buy something, not pay tax. I live in NM. You can come to NM, buy something, and pay the state tax. You live in Oregon.
05-11-2017 09:08 PM - edited 05-11-2017 09:09 PM
@jslogistics wrote:I am just passing taxes to the buyers of what I am charged. Anyone knows what to do?
What you are paying in sales tax to your supplier has ABSOLUTELY NOTHING to do with what sales tax you are supposed to charge your buyers.
If you are simply usng the amount of sales tax you are being charged by your supplier to determine what sales tax you are charging your buyers, you (a) have no idea how sales tax works and (b) are very likely breaking the law.