Washington Incorrect Sales Tax

[dashed1]

It seems that eBay is incorrectly collecting sales taxes in Washington on certain coin and bullion purchases that are EXEMPT from sales tax.    Beware the added cost.    Ebay might want to read WAC 458-20-248 and the states own website.

https://dor.wa.gov/get-form-or-publication/publications-subject/tax-topics/currency-and-coin-sales

[everett_powersports]

I believe it might be hard for ebay to audit every auction so they just blanket everything for sales tax to Washington. However, if Bullion is exempt from sales tax, a buyer can apply for a refund from Washington State using their form here:

https://dor.wa.gov/legacy/Docs/forms/Misc/AppforRefundorCredit.pdf

However you would need a few other tidbits of information. The seller will have to provide a written signed statement that they are unable to refund the Sales Tax because it was the eBay Marketplace that collected and remitted it. Include the eBay/Paypal Invoices that show the Sales Tax collected.

Hope this helps.

[dashed1]

Doesn't sound like much of a viable solution as the seller will not likely do this. Why does ebay hammer the buyer with this. Amazon has no problem identifying correct tax. Why should ebay buyers and sellers have to go to amazon. Ebay is required to collect taxes but not to collect incorrect rates or exempt taxes.

[clarkphilatelics]

If eBay collects tax when they should not, sellers will be at a competitive disadvantage. I would guess that consumers in some states may file complaints against eBay to their Attorney General. While eBay may believe that they can collect sales taxes on non-taxable items like clothing in Massachusetts or face value postage stamps, there will be pushback from buyers or sellers and those segments of the marketplace may disappear from eBay.

I cannot imagine that the discount postage segment of the market will survive on eBay if tax is collected. Kansas is quite clear in their guidance about the non-taxable status of discount postage. I am guessing that most, if not all, other states would consider stamps intended for use to mail letters or packages to be a pre-paid service.

[dashed1]

It's pretty clear that Ebay just doesn't care.  The Washington issue is not even close to questionable.    Its in plain English on the States own website.    I tried telling Ebay and basically they told me they don't care.      Its very discouraging and hardly a fair business model.     For a business this size, they can surely figure it out when others much smaller can do so.

[milepost182]

Amazon?  Then why was I charged sales tax on an EXEMPT item (a food seasoning) that I purchased from one of their listings? I wrote them, and was told, "You live in X State, You Pay tax!" I wrote back -- yes, I should pay tax on SHIPPING which is a service, but NOT on the actual item -- and included a link to the list of EXEMPT items, right from my state government page.  At that point I was sent a refund.

[milepost182]

As a seller I would do whatever I can to help my customer, of course I will submit whatever they need.

Dashed1, I don't understand your reasoning. If only for my own self preservation -- being able to show an auditor (who will come to MY home and  audit ME, not eBay) that I have done everything I could to rectify mistakenly collected tax, and any mistakes are not MY fault.

Too many customers are going to blame the SELLER and not eBay for wrongly collected sales taxes.

[Anonymous]

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@dashed1 wrote:

It seems that eBay is incorrectly collecting sales taxes in Washington on certain coin and bullion purchases that are EXEMPT from sales tax.    Beware the added cost.    Ebay might want to read WAC 458-20-248 and the states own website.

https://dor.wa.gov/get-form-or-publication/publications-subject/tax-topics/currency-and-coin-sales

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Hi @dashed1, do you have an example you could share? We have applied exemptions to a variety of categories to cover many of this scenarios. While we aren't able to support all possible exemptions at this time, I'm happy to look into any example you have to provide to have this reviewed for current or future changes.

[dashed1]

Sure any gold or silver bar, coins such as Canadian maple leafs, USA  1oz silver or gold coins,  and bullion coin issuesd by a government like the usa, Canada, China, South Africa.    

Any coin made of gold, silver, platinum or precious metal that does not have a significant numismatic value above its bullion value.    For example us Morgan silver dollars sold above 40 percent of melt value.      

In in most cases your entire bullion category should be exempt

The Washington State Department of  Revenue has a page that I referenced.   It’s quite clear.  

Thanks 

[dashed1]

Well at least as to this issue Amazon seems to  have it right.      

[dashed1]

I'm told Ebay does not allow sellers to "opt out" of tax collection so its unlikely anyone will audit you.    It would be better if they did allow an "opt out" but they probably  cant and I understand that.    Given Ebay is operating this way in collecting taxes, they need to get it right including looking at making corrections if they are wrong.

[dashed1]

WAC 458-20-248

Sales of precious metal bullion and monetized bullion.

It is presumed that all sales of coin and metal money are entitled to tax exemption: Provided, That in order to be exempt of tax persons who knowingly sell such things to buyers who are regularly engaged in the business of manufacturing jewelry or works of art must take a written, signed, and dated statement from such buyers that the coins or metal money are not being purchased for use in manufacturing jewelry or works of art. Artistic or cultural organizations which purchase such things are exempt of retail sales tax as provided in WAC 458-20-249.

[timestreasuresllc]

At least Amazon did respond (fairly promptly) but I don't know as I would get the same performance out of eBay.

I hope hundreds of eBay people will file complaints - that is the only way I see to fix anything.

[timestreasuresllc]

@dashed1replying to milepost182 -

I am not sure I would go quite as far as that statement.  Amazon reacted promptly  and made a correction when they were "caught" wrongly charging sales tax. 

But there is no way to know if they actually fixed the issue by inputting information from the state website, and then not charging tax on others who bought the same/similar tax-exempt items after they were notified - ?

[bmr2017]

I live in Virginia, and eBay charged me sales tax on exempt purchase of coins.   I spoke with customer service, who was unable to do much other than create a ticket.  This despite I pointed out that eBay has a "learn more" link concerning the sales tax charged, and that link takes the reader to Virginia Dept of Revenue, and scrolling down a few pages, one could find the section of law that cites the exemption of coin purchases.