Ebay Sales Tax on Everything Now?

[perezfan]

Well, it appears eBay is now charging sales tax on everything (including items from out-of-state sellers). I live in WA and just got hit up for sales tax from a CA Seller. I tried eBay's "Buy It Now" for 8 different out of state sellers, and all 8 were showing sales tax.

Perhaps this has already been discussed, but I did not realize every purchase (regardless of seller's locale) would be taxed in 2019. In my case, the tax amount varies, but averages just above 10%.

Is anybody else experiencing this same thing?

[Leon]

I just bought and paid for some cards (a few minutes ago) and didn't see any tax from an out of state (to me) seller.

[perezfan]

Interesting....

I wonder how they are targeting the people who must pay the tax. My actual purchase + the 8 items I previewed ALL wanted to charge sales tax in excess of 10%.

[Exhibitman]

I think it has to do with your state. I noticed when I listed stuff that two states (WA and MN I think) were assessing sales tax on my listings if sold to their residents even though I am in CA. You might check with your state's board of equalization.

[perezfan]

Originally Posted by Exhibitman

I think it has to do with your state. I noticed when I listed stuff that two states (WA and MN I think) were assessing sales tax on my listings if sold to their residents even though I am in CA. You might check with your state's board of equalization.

You’re right. I just got off the phone with eBay, and they confirmed it. Sales tax will be implemented by state, as follows...

January-
Washington
Minnesota

February-
Iowa

April-
Connecticut

May-
New Jersey

July-
Alabama
Oklahoma
Pennsylvania

I’m sure other states will subsequently follow. But that’s as far as eBay would say for the time-being. Bummer

[Buythatcard]

You would think that eBay would notify all of its sellers and buyers just what to expect. If it wasn't for this board, I would never have heard a single word about it.

[JollyElm]

As a test, I went to checkout with a few random things in my cart from a couple of different states (with FL and NC, I believe), and only the ones from California hammered me with tax.

[GeoPoto]

How many cards do you have to sell each year to qualify as a "dealer" and sales tax exemption. May give you an incentive to buy/sell some cards just to qualify.

[itslarry]

Originally Posted by GeoPoto

How many cards do you have to sell each year to qualify as a "dealer" and sales tax exemption. May give you an incentive to buy/sell some cards just to qualify.

Isn't there a form?
Like starting any small business?

[Exhibitman]

In CA you just have to register to get a resale permit. But, if you get into the system two facts apply:

1: You have to file a sales tax return every year or more frequently if the state says to; and

2: You have to track your untaxed buys and remit use tax.

It isn't just a free sales tax pass: if you abuse the exemption and you are caught, you will have trouble.

[conor912]

As this goes nationwide, I'll be interested to see how this affects eBay sales. Seems like a sneaky rollout on eBay's part. At some point buyers will catch on. The question is will they care or will they start factoring it in a la the juice in an AH.

[gzman]

eBay is handling all of the collection and remittance of the sales tax..but, how do they know what is taxed and not taxed in each of these states...my game used jerseys are clothing, and, clothing is not taxed in many states...how do they exclude collection of sales tax for certain items?
I live in a state where clothing is tax free...any game used jerseys I buy, wherever they are from, should not be taxed...

[Lorewalker]

Originally Posted by Exhibitman

2: You have to track your untaxed buys and remit use tax.

Isn't that just for personal use purchases and not inventory related purchases?