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eBay needs to verify your permits for collecting sales tax

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?

Message 1 of 85
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eBay needs to verify your permits for collecting sales tax

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.

Message 2 of 85
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eBay needs to verify your permits for collecting sales tax

Which includes dropshipping, where the tax burden is simply passed along.  There should be no need for permits.  The supplier is collecting the tax.

Message 3 of 85
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eBay needs to verify your permits for collecting sales tax

Thats what I would think, but Ebay is stating otherwise, needs a permit or whatever. Doesnt make no sense
Message 4 of 85
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eBay needs to verify your permits for collecting sales tax

Well for one thing you are charging sales tax in states that don't have a sales tax.
Message 5 of 85
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eBay needs to verify your permits for collecting sales tax

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.

Message 6 of 85
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eBay needs to verify your permits for collecting sales tax

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.

Message 7 of 85
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eBay needs to verify your permits for collecting sales tax

Evening,

I think I have the answer.

Because you are charging tax (rightly or wrongly) you are required to remit that tax to the pertinent state tax department.

If your supplier is also charging tax to you through Amazon then someone is either double paying for the tax and then most likely someone is KEEPING the tax that is being double charged instead of remitting properly.

Not sure how it works with drop shipping but it sounds to me like you think because the drop shipper is collecting the tax that you are just keeping the taxes charged to your customers because you are paying the tax to the drop shipper.

That's not how it works.

If you are charging tax it needs to be in compliance with state laws. If you are also paying tax through the drop shipping service at Amazon you should have a tax exempt number on file with them.

Hopefully I am wrong, but it appears you have been getting a windfall of tax revenue that most states would not be happy to find out about.

Mr C
Message 8 of 85
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eBay needs to verify your permits for collecting sales tax

@jslogistics

 

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.

Message 9 of 85
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eBay needs to verify your permits for collecting sales tax

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....

 


I love you forever, Christie! Fly high, precious daughter 1/14/1987-12/20/2016
Message 10 of 85
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eBay needs to verify your permits for collecting sales tax

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??

Message 11 of 85
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eBay needs to verify your permits for collecting sales tax

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.

Message 12 of 85
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eBay needs to verify your permits for collecting sales tax

Why are you charging sales tax for Oregon?  We do not have a sales tax here.

If it works, sell it. If it works well, sell it for more. If it doesn't work, quadruple the price and sell it as an antique.

-- Ferengi Rule of Acquisition #80
Message 13 of 85
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eBay needs to verify your permits for collecting sales tax

"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. 

Message 14 of 85
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eBay needs to verify your permits for collecting sales tax


@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. 

Message 15 of 85
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