Sold first item that tax was charged on. Item total with free shipping is $ 25.00.. Ebay charged $1.50 tax. Wisconsin rates are 5.5%. which would total $1.38. Is ebay charging extra to handle this tax money?? Thanks
Sold first item that tax was charged on. Item total with free shipping is $ 25.00.. Ebay charged $1.50 tax. Wisconsin rates are 5.5%. which would total $1.38. Is ebay charging extra to handle this tax money?? Thanks
Sales tax is based on the rate charged in the state where the item is being shipped. Was the buyer in Wisconsin, as well? Or was the item being shipped to Wisconsin? Or does the buyer live somewhere where the sales tax rate is 6%?
To answer your question, though, no. eBay is not charging buyers extra for the collection of sales tax.
Is all of WI the same tax rate? They will typically charge highest in your 5 digit zip code. If you use the 9 digit zip code, taxes will be for that area.
Sold first item that tax was charged on. Item total with free shipping is $ 25.00.. Ebay charged $1.50 tax. Wisconsin rates are 5.5%. which would total $1.38. Is ebay charging extra to handle this tax money?? Thanks
Sales tax is based on the rate charged in the state where the item is being shipped. Was the buyer in Wisconsin, as well? Or was the item being shipped to Wisconsin? Or does the buyer live somewhere where the sales tax rate is 6%?
To answer your question, though, no. eBay is not charging buyers extra for the collection of sales tax.
I've noticed that as well on some of my sales too, and I'm in NYC. We have one of the highest rates in the country yet ebay collected more as well. I'm wondering why as well. Possibly a fee for them to do so? I've seen nothing about fees though, only that they are collecting some.
I am in Wisconsin. Buyer is in Maryland with a 6% tax rate. That explains the $1.50.. As long as ebay and Paypal are not charging to do this tax collecting. Think of the money they (ebay) are making while all of this sits in an account payable, what?, monthly or quarterly!! LOL
I am in Wisconsin. Buyer is in Maryland with a 6% tax rate. That explains the $1.50.. As long as ebay and Paypal are not charging to do this tax collecting. Think of the money they (ebay) are making while all of this sits in an account payable, what?, monthly or quarterly!! LOL
As of Nov 1st, as a seller you pay the PP %age on the sales tax amount collected.
Sorry. Common sense dictates that the item being sold is in Wisconsin then the Wisconsin rate should be paid. Common sense goes out the window with this.
While the sales tax thing isn't in effect in Georgia YET - the sales tax rates vary here from county to county from 4% to 9%. The 4% is the STATE SALES TAX portion that you need a tax exemption certificate on file to be exempt from and the other part is for county, city, etc sales taxes. The internet sales tax is just for the state sales tax portion as I understand it.
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While the sales tax thing isn't in effect in Georgia YET - the sales tax rates vary here from county to county from 4% to 9%. The 4% is the STATE SALES TAX portion that you need a tax exemption certificate on file to be exempt from and the other part is for county, city, etc sales taxes. The internet sales tax is just for the state sales tax portion as I understand it.
That is not generally correct, where possible eBay is required to calculate both the State and Local portions and collect that combined amount. In some States if the buyer does not provide a zip+4 eBay is required to collect a flat rate amount that can at times be MORE than the amount due if the Local rate can be determined using the zip+4.
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It is just a new mechanism for collecting the existing use taxes. Buyers were supposed to be paying use tax on their State tax returns on out of state purchases. Use taxes have always been buyer based.
KrazzyKats • Volunteer Community Member • Buyer/Seller since 1998
