Page 1 of 2 12 LastLast
Results 1 to 10 of 15

Thread: Sales Tax on eBay

  1. #1
    Join Date
    Jul 2015
    Location
    Catskill Mountains, NY
    Posts
    4,378

    Default Sales Tax on eBay

    I was surprised to see a separate charge on my credit card for a uke purchase on eBay. I realize that online sellers must now charge sales tax, but it surprised me seeing it as a separate entry. So, be prepared. Reverb doesn't seem to be doing that. Maybe they found a loophole.
    Too many ukes, but I can't stop buying!
    https://www.catskillukulelegroup.com/

  2. #2
    Join Date
    Jul 2014
    Posts
    1,557

    Default

    Quote Originally Posted by Jerryc41 View Post
    I was surprised to see a separate charge on my credit card for a uke purchase on eBay. I realize that online sellers must now charge sales tax, but it surprised me seeing it as a separate entry. So, be prepared. Reverb doesn't seem to be doing that. Maybe they found a loophole.
    I thought I heard on the news that it was supposed to start on July 1, so Reverb might not have found a loophole.

  3. #3
    Join Date
    Aug 2018
    Location
    Owen Sound, Ontario, Canada
    Posts
    292

    Default

    It could be that some merchants include the tax in their list price.
    LACole
    Laurie Ann Cole

    Northern UK20 Concert Mahogany GCEA Aquila Lava
    2018
    Beaver Creek BCUKEFM-T Tenor Maple Flame gCEA D’addario Pro Arte
    Eddy Finn EF-Moon Concert Mahogany gCEA Aquila SuperNylgut
    Beaver Creek BCUKE-S Soprano Mahogany gCEA D’addario Black Nylon
    2019
    Ohana PKC-25G Concert Mahogany Pineapple gCEA Aquila
    Donner DUC-3 Concert Spruce/Mahogany gCEA Donner

    CPM CT-Q2 chromatic clip on tuner
    Snark SN-4 tuner
    Donner tuner

  4. #4
    Join Date
    Apr 2010
    Location
    Mission Viejo, CA
    Posts
    1,727

    Default

    I would think some of it has to do with the size of the vendor and location. The one problem that occurred when this was implemented was being able to identify all the various tax rates that can alter by county, not just state. It will drive some sellers away if they end up being liable for the tax.

    The easiest solution would be a single nationwide rate. Regardless, I’m not pleased about having to pay sales tax on a used item; a second taxation.

    John

  5. #5
    Join Date
    Jul 2018
    Posts
    595

    Default

    Quote Originally Posted by Jerryc41 View Post
    I was surprised to see a separate charge on my credit card for a uke purchase on eBay. I realize that online sellers must now charge sales tax, but it surprised me seeing it as a separate entry. So, be prepared. Reverb doesn't seem to be doing that. Maybe they found a loophole.
    Did you pay by Paypal? Buried somewhere in the listing did it say you would be charged separately for sales tax? If the total amount charged equals what you authorized to be charged, maybe that's just how they have set it up to keep the tax separate.

  6. #6
    Join Date
    Jul 2018
    Posts
    595

    Default

    Quote Originally Posted by 70sSanO View Post
    I would think some of it has to do with the size of the vendor and location. The one problem that occurred when this was implemented was being able to identify all the various tax rates that can alter by county, not just state. It will drive some sellers away if they end up being liable for the tax.

    The easiest solution would be a single nationwide rate. Regardless, I’m not pleased about having to pay sales tax on a used item; a second taxation.

    John
    Individuals don't collect sales tax. Only those operating a business do. Individuals don't have a sales tax number, and therefore don't fill out sales tax returns, nor do they have any way to remit the taxes to those states. Only buy used ukes from individuals if you don't want to pay the tax. Antique and second hand stores collect sales tax.

  7. #7
    Join Date
    Aug 2016
    Location
    PNW
    Posts
    1,165

    Default

    Reverb charged it on my last purchase from an individual. Kind of a shock.

  8. #8
    Join Date
    Apr 2016
    Location
    the wild west, Canada
    Posts
    344

    Default

    I saw something recently that eBay will be collecting sales tax for purchases in certain states, rolling out at various dates this year to comply with tax rules for those states. I believe eBay will be collecting and remitting to the states so the seller doesn't have to deal with it. Not sure why I care, living in Canada, but I go down all kinds of strange rabbit holes.
    Glenn

  9. #9
    Join Date
    Apr 2010
    Location
    Mission Viejo, CA
    Posts
    1,727

    Default

    Quote Originally Posted by AQUATOPAZ View Post
    Individuals don't collect sales tax. Only those operating a business do. Individuals don't have a sales tax number, and therefore don't fill out sales tax returns, nor do they have any way to remit the taxes to those states. Only buy used ukes from individuals if you don't want to pay the tax. Antique and second hand stores collect sales tax.
    I would agree up to a point for something like Craigslist. Although I imagine some states require the collection and remittance of sales tax buried in their tax laws but it has been unenforceable. Things have changed for online sales through a “selling” site such as eBay, Reverb, Etsy, etc. Amazon has been adding sales tax to most everything for a while. If think that there has always been a requirement for online sales, but enforcement and loopholes made it not practicable.

    The old law had a provision that required a physical presence in the state of delivery to require the remittance of sales tax. That has gone away. I believe that some states allow for a threshold that needs to be exceeded if there is no presence in the delivery state, I’m sure that provision is temporary. For the selling/auction sites it will probably always be added since the site has no idea what other transactions have occurred elsewhere.

    It is less about leveling the playing field and more about an additional source of revenue. This is easy pickins’ for states and I see no reason that they will give any relief.

    John
    Last edited by 70sSanO; 06-06-2019 at 09:17 AM.

  10. #10
    Join Date
    Apr 2018
    Location
    Redmond, WA
    Posts
    301

    Default

    South Dakota v. Wayfair, Inc allowed states to tax remote sales by large sellers (typically matching SD's 200+ shipments into state or over $100K). Some states jumped on that immediately. Some are gradually starting to do so. Ebay and Reverb are both marketplaces affected by this ruling and publish their sales tax policies to comply with state laws. Prior to this the user still owed the tax, but without reporting on the sales it was essentially honor system.
    https://reverb.com/news/what-reverb-sellers-need-to-know-about-new-sales-tax-rules

    https://www.ebay.com/help/buying/pay...chases?id=4771

    In my recent purchases, Ebay ran the item and sales tax separately. Reverb put them as separate line items on the same charge. No real difference to me.

    Looking up the sales tax for a given destination is pretty easy in the computerized era, and it's been necessary for ages for in-state sales. This is definitely an area where ebooks are better than dead trees!

    --Rob

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •