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online Sales Tax

 a friend that works for the state stated that they might have agents ordering items from sellers who sell items on ebay and small websites to find out who is selling what and how much in each state and complying with the laws:

New obligations for sellers

The new law also defines and imposes new obligations on “sellers.” sellers must post a conspicuous notice that includes the following information:

  • Sales or use tax is due from  purchasers on certain purchases
  • The seller might not collect and remit sales tax
  •  requires  purchasers to file a use tax return if sales tax is not imposed at the time of the sale by the seller
  • Instructions on how to obtain additional information from the Department of Revenue Services (DRS)

In addition, a referrer must “send a quarterly notice to each seller to whom such referrer transferred during the previous calendar year a potential purchaser located in this state.” The notice must include the following:

  • A statement that  imposes a sales or use tax on sales made to  purchasers
  • A statement that a seller making sales to  purchasers must collect and remit sales and use taxes to the DRS
  • Instructions for obtaining additional information from the DRS regarding the remittance of sales and use taxes on purchases made by  purchasers

Finally, referrers must send an annual notice to the Commissioner of Revenue Services by 

  • The name and address of each seller who received a quarterly notice in the immediately preceding calendar year
  • The name and address of each seller that the referrer knows listed or advertised tangible personal property on/in the referrer's medium, and collected and remitted Connecticut sales and use taxes
Message 1 of 6
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Re: online Sales Tax

Which state does your friend work?

Message 2 of 6
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Re: online Sales Tax

Most state laws I have seen has thresholds of sales to their state before the law kicks in , what is the threshold in your state?  The laws I have seen the threshold is anywhere from $10,000 -$100,0000.    Most Ebay sellers will not cross this threshold. 

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Re: online Sales Tax

  • Sold TPP or digital property that was delivered or transferred electronically to a purchaser in Kentucky in 200 or more separate transactions; or
  • Had gross receipts derived from the sale of TPP or digital property in Kentucky of more than $100,000
  • Here is the kicker they want the seller to send out a notice to each person that made a purchase and tell them they owe a tax on the items they bought from you
Message 4 of 6
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Re: online Sales Tax

You do realize that eBay sellers and website sellers are NOT referrers?

 

You need to include the entire contents of the law, not just part of it.  that includes the minimums, and the fact that it is the facilitator (ie: eBay) that has that obligation, not the individual seller. 

----------------------------
Successful and experienced seller since 1997, over 70,000 feedback, boardie since the boards were begun.
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Re: online Sales Tax


@p7050 wrote:

 a friend that works for the state stated that they might have agents ordering items from sellers who sell items on ebay and small websites to find out who is selling what and how much in each state and complying with the laws


How, exactly, would buying something from a seller reveal how much they sell to a particular state?

 

I think your friend heard part of a conversation and decided to fill in the blanks with stuff he made up.

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