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Thread: eBay sales tax

  1. #1
    Registered User mandolinstew's Avatar
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    Default eBay sales tax

    Why is ebay charging sales tax on out of state purchases?You can go to reverb and make the same purchase from the same seller and no sales tax.Ebay claims they are collecting on behalf of the seller.I contacted the seller and they do not collect sales tax and eBay is not notifying the seller of any sales tax.

  2. #2
    Orrig Onion HonketyHank's Avatar
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    Default Re: eBay sales tax

    I don't know if Reverb is, right now, adding sales tax. But I know they will be if they aren't already. I listed something there and I got notified that it would happen if the buyer had a mailing address in certain states.
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  4. #3
    Registered User mandolinstew's Avatar
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    Default Re: eBay sales tax

    Quote Originally Posted by HonketyHank View Post
    I don't know if Reverb is, right now, adding sales tax. But I know they will be if they aren't already. I listed something there and I got notified that it would happen if the buyer had a mailing address in certain states.
    Iím gonna call eBay tomorrow.I see that amazon is charging sales tax on some sales now.

  5. #4

    Default Re: eBay sales tax

    Etsy is also collecting sales tax on some, if not all, sales. May depend on the state.

    Not sure if any of them are actually paying sales tax, that's a whole other question...

  6. #5

    Default Re: eBay sales tax

    FWIW, I recently bought some strings on eBay from Musician's Friend. I really didn't care who the seller was, I just sorted by the best price with free shipping and clicked. Even though the seller address on the item page didn't say my state, I was charged sales tax by MF because they claimed to have a store in my state???? Needless to say I wasn't happy. Granted it was just a few cents on strings, but it turned out to no longer being the best price, when the sales tax was considered -- which was the whole point....

    Something to consider, if you are making a larger purchase from MF. In fact, I considered it downright UNfriendly.......

  7. #6

    Default Re: eBay sales tax

    Yup, if your home state collects sales tax, then websites which allow selling to those states are required to collect and deliver such tax to your state. Being more precise, you also are supposed to do it if your state collects sales tax and a website doesn't do it for you

    Amazon and eBay been doing it a while. Reverb does it occasionally.

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  9. #7
    Registered User mandolinstew's Avatar
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    Default Re: eBay sales tax

    I’m lucky to have some great stores nearby (Not the three guitar centers)and have bought great mandolins and guitars that I played.I wish I knew this was coming I would have stocked up on string.I had to close my bank account to close my PayPal account and am going back to cash at local stores.Money orders if I need to.Good thing I have my mandolins and don’t need to buy any more.

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    Some Ability - No Talent MikeZito's Avatar
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    Default Re: eBay sales tax

    Here in Connecticut the state taxes you on just about anything that you can imagine - including out-of-state and internet purchases. Being a relatively honest guy, I used to keep a tally on my internet purchases and add them to my state income tax every year . . . but now that the websites are collecting the taxes for me, I can save time on that reporting hassle, next April 15th.

    However, on the other side of the coin - it's starting to look like George Orwell, more and more every day . . . .

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    Default Re: eBay sales tax

    For decades if you bought something from another state and didn't pay sales tax you are legally supposed to pay use tax, which is the same thing. It has never been enforced, so this is a way to collect what states are missing out on I guess.
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    Registered User Doug Brock's Avatar
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    Default Re: eBay sales tax

    Quote Originally Posted by pops1 View Post
    For decades if you bought something from another state and didn't pay sales tax you are legally supposed to pay use tax, which is the same thing. It has never been enforced, so this is a way to collect what states are missing out on I guess.
    If everybody has to pay sales tax on Internet sales, it will also help level the playing field for local stores.
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    Registered User slimt's Avatar
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    Default Re: eBay sales tax

    Quote Originally Posted by Doug Brock View Post
    If everybody has to pay sales tax on Internet sales, it will also help level the playing field for local stores.
    True. But most local stores dont have the goods that people want. And most wont go out of there way to get those certain goods. So that being said. The internet shopping is not bad ,theres a wide assortment of stuff to be had. And ebay collects sales tax on Canadas provinces behalf .

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    Default Re: eBay sales tax

    Quote Originally Posted by Doug Brock View Post
    If everybody has to pay sales tax on Internet sales, it will also help level the playing field for local stores.
    Agree. I dont want to pay more but not collecting sales tax for out of state purchases puts brick and mortar stores at a disadvantage.

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    Registered User Doug Brock's Avatar
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    Default Re: eBay sales tax

    Quote Originally Posted by slimt View Post
    True. But most local stores dont have the goods that people want. And most wont go out of there way to get those certain goods. So that being said. The internet shopping is not bad ,theres a wide assortment of stuff to be had. And ebay collects sales tax on Canadas provinces behalf .
    The selection available from Internet shopping is tough to beat, but I know folks who go to Best Buy to try out camera gear, then order from B&H or Adorama to save the taxes. I'm sure the same thing has put some music stores out of business.
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  19. #14

    Default Re: eBay sales tax

    Quote Originally Posted by Doug Brock View Post
    The selection available from Internet shopping is tough to beat, but I know folks who go to Best Buy to try out camera gear, then order from B&H or Adorama to save the taxes. I'm sure the same thing has put some music stores out of business.
    Speaking of B&H, they have a new credit card which credits you for the sales tax which you now have to pay in any state when ordering from them. So if you run a production company or something, you could potentially save thousands each year. Me, I just bought a new camera - an A7 II, lol, and a bunch of used Zeiss glass, not so lol - so I'm set for the next ten years.

    (Oh, it has a 30% APR, so don't carry a balance on that one...)

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    Registered User Louise NM's Avatar
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    Default Re: eBay sales tax

    Sales taxes fund parks, police and fire departments, roads, museums, and everything else in our cities and states. I want a bargain as much as anyone else, but . . .

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  22. #16

    Default Re: eBay sales tax

    I'm a CPA. For the longest time whether a business selling into another state had to collect sales tax was a function of their presence in that state. If Guitar Center had a store in your state then they were held to be directly benefiting from that state's sales tax and thus any store shipping into that state had to collect it. Since B&H was only in New York they had an advantage. The legal term for this presence is "nexus" and the term began to stretch, particularly when the Weekly Reader case a half century ago concluded that the elementary school teachers collecting payments from the children for book orders were agents of Weekly Reader despite not getting any remuneration.

    The big trend in the last few decades is states getting together and passing laws to require sales tax collection in every state in the agreement.

    Actually, everyone who buys something out of state is required to pay the sales tax directly to their state by filing a Use Tax return. Politically it was apparently decided that this would not be enforced along with making garage sales collect sales tax.

    At any rate, it's just a matter of time before all states mandate collecting sales tax for all other states. I've been retired for 13 years and so haven't kept up with the latest developments but presume them to be a continuation of a very long-term trend.
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  24. #17

    Default Re: eBay sales tax

    the little guy all ways gets screwed. the big fat cats have offshore banking, pay little or no income tax. why does this surprise anyone this is just another way to squeeze the last dollar out of the little folk. so just open up your wallets & let them dip into it & take what they want. plus what I would like to know is what are they doing with all this extra tax dollars ?, fixing the highways, schools ?, maybe feeding the hunger ?.

  25. #18

    Default Re: eBay sales tax

    The advent of Internet sales, and the expansion of these resources have brought the collection of state sales tax to the forefront.

    Each state will provide you with how they use the dollars collected from each of their revenue streams. It is a matter of public record. Look on their individual treasury department websites for this data.
    Good Advice: Play before you pay, and know your product and your market.

  26. #19

    Default Re: eBay sales tax

    Mary I would really like to believe you. but it is really hard when your going east on the grand central parkway & you cross over into Nassau county, one of the highest taxing county's in the country & you hit nothing but pot holes. its almost like being in a 3rd world country. there is no more bargains on eBay anymore if you have to pay taxes on mandolin strings & things.

  27. #20
    Moderator MikeEdgerton's Avatar
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    Default Re: eBay sales tax

    There's an easy answer to this quandary. Buy only from companies and individuals in Alaska, Delaware, Montana, New Hampshire, and Oregon. Then it will be a non-issue for you.
    "Bargain instruments are no bargains if you can't play them". These are the words of J. Garber.

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    Registered User jim simpson's Avatar
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    Default Re: eBay sales tax

    I just paid tax on my recent purchase. I guess for WV and other states, this recently went into effect. My paypal is tied to my credit card. I like to make purchases when I have the cash to pay off my balance. This tax surprise had me carrying a balance. I guess the shoe was going to fall sooner or later.
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  30. #22

    Default Re: eBay sales tax

    Quote Originally Posted by MikeEdgerton View Post
    There's an easy answer to this quandary. Buy only from companies and individuals in Alaska, Delaware, Montana, New Hampshire, and Oregon. Then it will be a non-issue for you.
    Mike, if you live in N.J. and buy from a company in NH, you are required to pay N.J. sales tax. Thatís always been the law, but the seller was never required to collect the tax when they collected payment for the sale. You were supposed to voluntarily pay the sales tax to N.J. Now, since Amazon wanted to set up warehouses everywhere they set the precedence in agreeing to collect sales tax across the board. They unwittingly dragged all retailers and sellers with them regardless where the transaction initiates from.

    I once bought two Caltons from a dealer in Canada, shipped to me in N.J., where I was living at the time. Two years later I got a letter from the State of N.J. stating that I owed them not only the sales tax on that sale, but a penalties and interest. Then Governor Corzine had the treasury dept in N.J. tracking these transactions through customs records and assessing the tax, interest and penalties.
    Good Advice: Play before you pay, and know your product and your market.

  31. #23

    Default Re: eBay sales tax

    Quote Originally Posted by mandolin tony View Post
    Mary I would really like to believe you. but it is really hard when your going east on the grand central parkway & you cross over into Nassau county, one of the highest taxing county's in the country & you hit nothing but pot holes. its almost like being in a 3rd world country. there is no more bargains on eBay anymore if you have to pay taxes on mandolin strings & things.

    Tony, every state has a budget, and must declare where their monies are collected and spent, and report these through their financial statements. They follow somewhat the same accounting rules that companies do. If you dig through their reports you will see where the money is spent.

    I gave up on eBay years ago. As for potholes, I grew up in one of the wealthiest counties in the country. On my last trip back I have to admit, the roads were in terrible shape, like something out of World of Warcraft.
    Good Advice: Play before you pay, and know your product and your market.

  32. #24
    Moderator MikeEdgerton's Avatar
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    Default Re: eBay sales tax

    Quote Originally Posted by Mandobar View Post
    Mike, if you live in N.J. and buy from a company in NH, you are required to pay N.J. sales tax...
    You mean that question they have on the state tax returns? I always answer that question truthfully. This is New Jersey, who would ever think of not paying their taxes.
    "Bargain instruments are no bargains if you can't play them". These are the words of J. Garber.

  33. #25
    Fatally Flawed willkamm's Avatar
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    Default Re: eBay sales tax

    Reverb is only collecting based on where the buyer lives and in certain states. Here's an email I received in early July.

    Reminder About US Sales Tax Collection
    Reverb will soon collect sales tax from buyers in all Marketplace Facilitator states. When you sell to Marketplace Facilitator states, Reverb is responsible for collecting and remitting sales taxes on your behalf. No action is required on your part. Reverb will start collecting sales tax from buyers in Marketplace Facilitator states on the following dates:

    Washington Now
    Minnesota Now
    Pennsylvania 7/17/2019
    New Jersey 7/17/2019
    Arizona 7/17/2019
    South Carolina 7/17/2019
    Connecticut 7/17/2019
    Alabama 7/17/2019
    Oklahoma 7/17/2019
    Iowa 7/17/2019
    Washington DC 7/17/2019
    South Dakota 7/17/2019
    Wyoming 7/17/2019
    Additional Information
    To learn more about how this affects you as a Reverb Seller, please read this article or visit the taxes section of our Help Center.

    This information is intended to inform you of upcoming tax changes. For tax advice, you should contact a tax professional.
    From what I have read, in most states, the seller has to have a brick and mortar facility. But not in these so called "Marketplace Facilitator" states.
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