sales tax charged even though the seller resides outside the US

[acrylic-model-painting]

I am in Greece (europe) and so are my wares.

the customer is in NY. He wasn't paying. i went to send an invoice, and found out Sales Tax is charged on him!

i discounted it just in case, but i am confused. Shouldnt i be based in the US for the US to collect Sales Tax? 

[orangehound]

It is correct that sales tax is collected.

Over the last year in the United States, multiple states have passed laws requiring "Marketplace Facilitators" to collect sales tax if their marketplace's total sales to the state is over some specified amount.

eBay started collecting sales tax on New York resident purchases beginning on June 1.

[loveyourimagination49]

You didn’t get charged tax.

[jklfindings]

Sales and use tax is based on where the buyer is, not the seller.

[loveyourimagination49]

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@loveyourimagination49 wrote:
You didn’t get charged tax.

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Sorry ran out of edit time, please ignore post.

[findingfinds888]

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@orangehound wrote:

It is correct that sales tax is collected.

Over the last year in the United States, multiple states have passed laws requiring "Marketplace Facilitators" to collect sales tax if their marketplace's total sales to the state is over some specified amount.

eBay started collecting sales tax on New York resident purchases beginning on June 1.

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But this seller is in Greece. Do states collect sales tax on purchases ordered from a different country than the USA? If that is so, then ebay would have to charge sales tax (if your state has sales tax) on any purchases a buyer makes from china. Or Canada... I don't know if states can collect sales tax on out of country purchases.

[alcoforever]

.

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But this seller is in Greece. Do states collect sales tax on purchases ordered from a different country than the USA? If that is so, then ebay would have to charge sales tax (if your state has sales tax) on any purchases a buyer makes from china. Or Canada... I don't know if states can collect sales tax on out of country purchases.

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States collect tax on anything delivered to that state.   It matters not where the item came from.  Items bought from a seller on the moon are taxable.

[slippinjimmy]

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@findingfinds888 wrote:

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@orangehound wrote:

It is correct that sales tax is collected.

Over the last year in the United States, multiple states have passed laws requiring "Marketplace Facilitators" to collect sales tax if their marketplace's total sales to the state is over some specified amount.

eBay started collecting sales tax on New York resident purchases beginning on June 1.

---

But this seller is in Greece. Do states collect sales tax on purchases ordered from a different country than the USA? If that is so, then ebay would have to charge sales tax (if your state has sales tax) on any purchases a buyer makes from china. Or Canada... I don't know if states can collect sales tax on out of country purchases.

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eBay is already collecting sales tax on ANY sale from ANY seller from ANY country if the buyer is located in one of the States with a marketplace facilitator laws. eBay is also collecting sales tax on sales to buyers in Australia and New Zealand  and coming in a year or two eBay will be collecting VAT on shipments destined for the EU.

Bottom line, the days of tax avoidance on cross-border (State or Country) buying/selling are coming to an end. You can add this to the list of "I remember when" things just like payments by mail, negs for buyers, gas used to cost 25 cents a gallon or my personal favorite....."I'm going to quit smoking when they hit 50 cents a pack!".

[kat1123]

if i go to china to buy something, I am NOT charged tax in the state I live in to purchase said item. I call bull sheet.

[mansons2005]

"f i go to china to buy something, I am NOT charged tax in the state I live in to purchase said item. I call bull sheet."

Actually, if you look at your state income tax form you will see a line for USE TAX - where you were supposed to declare items bought out of state/county and pay the appropriate taxes on them when you filed your return. So, yes, since its inception, your state has taxed items bought in China or anywhere else. You just haven't been paying it and now the advent of the internet has allowed states to close that loophole and collect the taxes they mandate.

The above is not my opinion, which is irrelevant to the conversation. THAT rant is posted elsewhere.......................................

[7606dennis]

Sales/use tax has for decades been the responsibility of NY residents to pay.  It doesn't matter where the seller is located, if it is delivered within the state of New York the tax applies and the buyer should have been paying it although many neglected to do so.  However, New York's legislature has enacted a marketplace facilitator law making facilitators, such as eBay, responsible for collecting it from the buyer.  It doesn't matter where the seller is located, it is the buyer's location that matters. 

You are not responsible for collecting the tax and remitting it, eBay handles that.  However the buyer is responsible for paying it and if he refuses to pay for his purchase because of the sales tax being charged, I suggest filing a UID and closing it after 96 hours and giving him an unpaid item strike on his account.  You can then safely re-list.  Don't forget to put him on your BBL.

[7606dennis]

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@findingfinds888 wrote:

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@orangehound wrote:

It is correct that sales tax is collected.

Over the last year in the United States, multiple states have passed laws requiring "Marketplace Facilitators" to collect sales tax if their marketplace's total sales to the state is over some specified amount.

eBay started collecting sales tax on New York resident purchases beginning on June 1.

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But this seller is in Greece. Do states collect sales tax on purchases ordered from a different country than the USA? If that is so, then ebay would have to charge sales tax (if your state has sales tax) on any purchases a buyer makes from china. Or Canada... I don't know if states can collect sales tax on out of country purchases.

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Yes, they can and do.  

[7606dennis]

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@kat1123 wrote:

if i go to china to buy something, I am NOT charged tax in the state I live in to purchase said item. I call bull sheet.

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You would be charged whatever type of tax China levies on sales there.  However, if you purchased it there and had it delivered to you in your home state, unless that state is one without a sales/use tax, you would still owe it to your state.