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EBAY COLLECTION OF SALES TAX


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#1 costa

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Posted 03 May 2019 - 06:13 PM

thought I would put this here since members here do buy u.s. items off ebay. THEY NOW CHARGE A SALES TAX ON TOP OF THE WINNING BID. ALONG WITH EBAY'S CUT AND PAY PALS CUT THERE IS NOW A TAX ADDED ON WHICH IS HIGHER THEN IF YOU BOUGHT THE ITEM FROM A STORE.  I won 2 items and told the seller to relist them that I will not pay a tax. think before you buy.



#2 kaszanka

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Posted 03 May 2019 - 06:41 PM

wow.. was it just used items - like military stuff or something brand new ?



#3 iron bender

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Posted 03 May 2019 - 06:41 PM

This includes out of state purchases?



#4 doyler

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Posted 03 May 2019 - 06:43 PM

I believe they call it Market Place Responsibility tax and its currently based on the state you live in.

 

I recall January 1st the state I live in enacted  the tax on internet purchases outside our state as they feel they are loosing truck loads of revenue.The law was passed in May of 2018 to charge for "market place facilitators" as they call it.

 

See the list here for the current states ebay deducts taxes for the states listed.....New Jersey is one of them

 

https://www.ebay.com...es tax#section2



#5 doyler

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Posted 03 May 2019 - 06:44 PM

eBay sales tax collection

Based on applicable tax laws, eBay will calculate, collect, and remit sales tax on behalf of sellers for items shipped to customers in the following states:

 

 

 

 

 

State

Effective Date

Additional Information

Minnesota

January 1, 2019

Minnesota - opens in new window or tab

Small business exemption - Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.

Washington

January 1, 2019

Washington - opens in new window or tab

Iowa

February 1, 2019

Iowa - opens in new window or tab

Connecticut

April 1, 2019

Connecticut - opens in new window or tab

District of Columbia

May 1, 2019

District of Columbia - opens in new window or tab

Nebraska

May 1, 2019

Nebraska - opens in new window or tab

New Jersey

May 1, 2019

New Jersey - opens in new window or tab

Alabama

July 1, 2019

Alabama - opens in new window or tab

Oklahoma

July 1, 2019

Oklahoma - opens in new window or tab

Pennsylvania

July 1, 2019

Pennsylvania - opens in new window or tab

South Dakota

July 1, 2019

South Dakota - opens in new window or tab

South Carolina

October 1, 2019

South Caroli


Edited by doyler, 03 May 2019 - 06:46 PM.


#6 doyler

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Posted 03 May 2019 - 06:47 PM

I can only speculate this is the beginning.Im sure once other states see it they will all start a similiar tax reform to get in on the revenue



#7 gwb123

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Posted 03 May 2019 - 06:51 PM

Amazon also charges state sales tax. It actually relieves me from having to add up my out of state purchases at the end of the year. The tax man will have his cut.

#8 doyler

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Posted 03 May 2019 - 06:54 PM

thought I would put this here since members here do buy u.s. items off ebay. THEY NOW CHARGE A SALES TAX ON TOP OF THE WINNING BID. ALONG WITH EBAY'S CUT AND PAY PALS CUT THERE IS NOW A TAX ADDED ON WHICH IS HIGHER THEN IF YOU BOUGHT THE ITEM FROM A STORE.  I won 2 items and told the seller to relist them that I will not pay a tax. think before you buy.

 

So its basically your state that has passed a law to get taxes from your ebay purchases as it looks like May 1st was the time it took effect for New Jersey...now any item off of ebay purchased will automatically be taxed it appears...

 

 

On June 21, 2018, the U.S. Supreme Court overturned the requirement that remote sellers must have a physical presence in a state in order to be required to collect that state’s Sales Tax (South Dakota v. Wayfair) (Wayfair). A remote seller is one who sells tangible personal property, specified digital products, or services for delivery into a state via the Internet, catalog, or telephone, and has no physical presence in that state. As a result of the Wayfair decision, states may now impose Sales Tax collection and remittance obligations on remote sellers.

Sellers that have a physical presence in New Jersey, or who are otherwise legally obligated to collect and remit New Jersey Sales Tax, are unaffected by the new law.

Economic Threshold
Consistent with Wayfair, legislation was enacted that requires certain remote sellers to collect and remit New Jersey Sales Tax. For sales made on and after November 1, 2018, a remote seller that makes a retail sale of tangible personal property, specified digital products, or services delivered into New Jersey must register, collect, and remit New Jersey Sales Tax if the remote seller meets either of the following criteria (the economic threshold):

  • The remote seller's gross revenue from sales of tangible personal property, specified digital products, or services delivered into New Jersey during the current or prior calendar year, exceeds $100,000; or
  • The remote seller sold tangible personal property, specified digital products, or services delivered into New Jersey in 200 or more separate transactions during the current or prior calendar year.

A remote seller that does not meet either of these criteria does not have to register with the Division of Taxation to collect and remit New Jersey Sales Tax.

Marketplace Transactions
Remote sellers are not required to collect and remit Sales Tax on the sale of tangible personal property, specified digital products, or services delivered into New Jersey when sold through a marketplace, because the new law requires the marketplace facilitator to collect and remit Sales Tax on all marketplace transactions. The marketplace is required to collect and remit tax, regardless of whether the marketplace seller is above or below either of the economic thresholds. For additional information on Sales Though a Marketplace, see Technical Bulletin 83.



#9 manayunkman

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Posted 03 May 2019 - 07:06 PM

It's a government not eBay issue.



#10 TheMariner

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Posted 03 May 2019 - 07:11 PM

Going off what manayunkman said this is not something ebay wanted they actually paid to lobby against it! I suspect within 5 years maybe less all 50 states will have mandatory tax collection for all online sales be it ebay/etsy/amazon/private website etc. Billions of dollars a year are being run through these sources. You can be certain our greedy state governments will jump on the band wagon! Sadly for those of us who sell online this is just another nail in the coffin. As it raise costs to buy things and also to sell because buyers are not going to want to shell out those extra few dollars on tax! 



#11 doyler

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Posted 03 May 2019 - 07:19 PM

Going off what manayunkman said this is not something ebay wanted they actually paid to lobby against it! I suspect within 5 years maybe less all 50 states will have mandatory tax collection for all online sales be it ebay/etsy/amazon/private website etc. Billions of dollars a year are being run through these sources. You can be certain our greedy state governments will jump on the band wagon! Sadly for those of us who sell online this is just another nail in the coffin. As it raise costs to buy things and also to sell because buyers are not going to want to shell out those extra few dollars on tax! 

 

 

BOHICA....



#12 Thor996

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Posted 03 May 2019 - 07:20 PM

Only gonna get worse. Hope the Red States are lower on the grab... already left a blue state grabber.



#13 manayunkman

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Posted 03 May 2019 - 07:25 PM

I predict that we will all live through it despite whether you think it's right or wrong.



#14 costa

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Posted 03 May 2019 - 07:31 PM

for instants------ I won a set of flight surgeon wings for 215.00. shipping was 3.78. the tax was 14.26 which is higher then new jersey sales tax if same item was bought in a store. I told the seller keep it---- relist it. at the same time I am considering canceling my ebay membership. these lousy politicians will find every which way to pick your pockets to finance their cock and bull BS. add up what ebay takes on an item sold and then pay pal. now add the tax to it. get my drift?? I can buy at other places and sell too.



#15 manayunkman

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Posted 03 May 2019 - 07:34 PM

As far as the tax I do hope they take it out automatically as that would save a lot of work.

 

I always wished eBay took the fee out at the point of payment too as that once a month payment can be obtrusive.



#16 manayunkman

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Posted 03 May 2019 - 07:37 PM

I suspect folks will pay less to compensate for the tax.



#17 Thor996

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Posted 03 May 2019 - 07:41 PM

I predict that we will all live through it despite whether you think it's right or wrong.

 

I predict you are correct. Just a matter of time ..... tax the air we breathe when the find a way to do it. Complaining isn't going to change what they already are engaged in doing. But I too predict buyers will be more discretionary on pricing..



#18 jeffs1130

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Posted 03 May 2019 - 07:55 PM

I noticed this back in April… I sold a flag to a buyer in Connecticut on March 28th

He waited and didn’t send payment until after April 1st… He got hit for another $7 in taxes! 

Guess a lot of people didn’t see this coming but it happened!
 

For once, I’m glad I live in Illinois and there is no tax yet!  It will add up if you buy a Medal or something $$$!  



#19 iron bender

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Posted 03 May 2019 - 08:24 PM

It's always been easy to complain about a dealer giving 65% to a seller on commission sales. Doesn't look too bad now considering how an auction outfit, plus online payment fee, and now a tax collection, will hit your wallet. Perhaps selling through AGM, Stewarts, etc. isn't that bad. Funny, I'm a small machine shop, and just recently started accepting credit cards. Works in everyone's favor but mine. I get a 4.5% hit and don't get my money for three days. Customer gets their parts plus points, instantly, CC gets their cut, instantly,  then there's the card service merchant who gets their cut, instantly. Why do I do this? Where's the justice? But, in the end, if you want the customer, this is the way it works now. I feel bad for dealers who rely heavily on ebay...as I have four items on ebay currently


Edited by iron bender, 03 May 2019 - 08:34 PM.


#20 Navybean

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Posted 03 May 2019 - 09:03 PM

This change has definitely slowed sales on eBay in my opinion. I feel over all prices are down this year but this is also a trend I have been seeing for the last couple of years. In states were eBay is being forced to collect taxes I cannot help but think sales will be even greater impacted to the negative.
With that said I would also have to say it also seems a lot more difficult to sell items here on the forum.

#21 Ewart

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Posted 03 May 2019 - 09:19 PM

I have noticed that the same is true if you use the eBay global shipping programme. For example on goods coming into the UK we are supposed to pay a % of the cost in tax.

Quite often this is not picked up as it comes through customs, I think I've had to pay three in nearly 20 years of online buying and selling. However there is a minimum number attached, so it wouldn't be applicable to smaller purchases.

With the GSP this tax is automatically added to the P&P and eBay pay it on my behalf to the UK government.

#22 agate hunter

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Posted 03 May 2019 - 09:46 PM

I'm in WA and the ebay tax started first of this year. Wasn't happy at first, still don't like it, but I collect very specific items that often are only found on ebay, so I will keep looking and buying, just not buy as much as I used to, only what I really need. All depends how badly one wants an item I suppose. 



#23 JCBrownABNPFDR

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Posted 04 May 2019 - 02:15 AM

Here's my take on this.  When I go to an auction that has a buyer's premium (locally usually 10%) I simply make a decision on how much I'm willing to pay and stop my bidding at 90% of what I'm willing to pay.



#24 Kadet

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Posted 04 May 2019 - 03:39 AM

As others have stated, this isn't an "EBAY RIP OFF TAX" as the thread title implies. It is a business policy put in place to comply with the effects of a recent Supreme Court decision regarding taxation for online purchases. Ebay has no choice but to comply with the new state laws. I really get tired of all the grousing about Ebay and Paypal. Both are businesses not collector benevolent organizations. As such, they have a profit motive and must comply with the law (like any other legitimate business). Can using their services be a bit pricey? sure, but they are both fantastic tools IMO and my collection is better than it would be without them. Remember the good old days of paper catalogues and sending postal money orders to strangers in the mail? No thanks. As another poster stated...factor the fees and taxes in to your buying and selling and adjust your bids and expectations accordingly...or simply don't use them.


Edited by Kadet, 04 May 2019 - 03:41 AM.


#25 JasonT

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Posted 04 May 2019 - 03:41 AM

Same here, I do the same with shipping costs. You just factor it in what your willing to pay. For all the Ebay haters, its not Ebays fault, there just following the law.

Here in MA, we've been paying sales tax on Amazon purchases for a while, but not the third party merchants. It's only a matter of time though. States cracking down on the online purchases should help level the playing field a little bit for brick and mortar stores. Maybe this will even help make militaria shows more popular where you dont need to deal with paying shipping or tax.


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