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I just had to pay sales tax on out of state purchase on ebay ? (1 Viewer)

ovo

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Hi guys,
I live in California and have always paid sales tax on in state purchases. Today I got hit on several out of state purchases. I've never seen that before. Has there been a change in policy ?
 
I just got an email this week about a change

---------------------------------
In 2018, PayPal and eBay worked together to implement a solution to comply with laws that require eBay to collect and remit tax on applicable transactions. Those transactions that require eBay to collect tax are currently divided into two separate charges - one for the item purchased and another for the associated tax.

Effective November 2019, PayPal and eBay will change the way these transactions are processed and how taxes are collected and remitted.

For transactions that require eBay to collect tax from buyers, the tax amount will be included in the gross purchase amount to be processed. Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.

You do not need to take any action.

Learn more about Internet Tax at eBay Seller Center.
 
just got the same email this morning from the seller side.
 
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Not sure about your details, but in many states, sales tax is required if the out-of-state vendor has any presence in your state.
 
Slowly but surely the taxing authorities are closing the loopholes that large e-commerce companies have been using to avoid state taxes. They got to Amazon first and now eBay. Smaller retailers are still slipping under the radar.
 
This started in May of this year for me personally.

I'm a heavy (was) eBay user until these taxes came on...

In one bad case...I was re-taxed on an already taxes paid for item as I crossed the border.

This was my last eBay transaction since then
 
Darson said:
Slowly but surely the taxing authorities are closing the loopholes that large e-commerce companies have been using to avoid state taxes. They got to Amazon first and now eBay. Smaller retailers are still slipping under the radar.
Click to expand...
Honestly hope this can help out the B&M stores compete. I love online shopping as much as the next guy but it's got out of control and is destroying local sales of anything other than Walmart or other whoresale warehouse stores.
 
ovo said:
Hi guys,
I live in California and have always paid sales tax on in state purchases. Today I got hit on several out of state purchases. I've never seen that before. Has there been a change in policy ?
Click to expand...
So that was you that outbid me on those starbursts, mmmm? lol!
 
Recent notice said 11 new states adopted the taxation, bringing the total to 34.

And eBay is splitting my expenses into two transactions, one for the purchase & shipping amount and one for the amount of the tax. I have my PP hooked to an account with a limited number of transactions before banking fees kick in so this effectively reduces my willingness to buy through eBay by one half. (Don't even get me started on the effing banks - :mad: )
 
Yep...as a Canadian, I have been paying twice for an eBay transaction since May.

It stopped me entirely. I've bid here and there...but as soon as I get serious...I remind myself of the taxes...and that's the end.

eBay is history for me personally. It was a good 19 year ride...
 
I noticed this for the first time as well. Bought a video game and noticed sales tax and I was confused because it was not an MA seller. I can't stand our sales tax system. Someone already paid sales tax on the item I bought because it was a used video game from a personal seller. Now they get to reach into my pockets for the second round. Could have at least taken me to dinner first...
 
Jeevansluck said:
So long as you pay the state taxes on that meal...may have been possible
Click to expand...
I buy a vehicle in Somerville, MA... I pay sales tax on that vehicle of 6.25%. I than have to buy a yearly parking pass in order to park my car on Somerville streets. I also have to pay a yearly excise tax on said vehicle for the vehicles value, that the government gets to determine. Welcome to Taxachusetts, enjoy your stay.
 
The new law went into effect on October 1 nationwide!!!!! It affects ALL e-commerce. Prior to this, the individual states had to collect taxes ONLY if the seller had a PHYSICAL presence in the state!
 
sheikh617 said:
I noticed this for the first time as well. Bought a video game and noticed sales tax and I was confused because it was not an MA seller. I can't stand our sales tax system. Someone already paid sales tax on the item I bought because it was a used video game from a personal seller. Now they get to reach into my pockets for the second round. Could have at least taken me to dinner first...
Click to expand...


Sounds like the very definition of VAT :tdown:
 
In a Supreme court ruling last year ( South Dakota vs Wayfair), The current U.S. Supreme Court ruled that states can now require internet retailers to collect sales taxes, even if the merchant doesn't have a physical presence there.
Since then, states have been "falling like dominoes" enacting similar laws that require internet taxes ...
These include the "Marketplace Facilitator tax" .. where larger online marketplaces themselves, ( eBay, Amazon etc), not the individual merchants, are required to directly collect the state tax and remit it to the state
There are now dozens of states doing this..

Here's a recent memo to sellers from Amazon, about just the "newest batch" that went into effect OCT 1 :

: .. " Based on changes to Arizona, California, Colorado, Maine, Maryland, Massachusetts, Nevada, North Dakota, Texas, and Utah State tax laws, Amazon will begin calculating, collecting, and remitting sales and use tax for all orders shipped to customers in these states on October 1, 2019. .."
 
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Technically, you are liable for any taxable purchases whether the vendor charges you sales tax or not. It’s called a use tax. You are supposed to self-report. Hardly anyone does, because it’s impractical to enforce.
 
Thats only like the 5th tax now! Does anybody know the percent for the extra tax? Or if it varys state by state, ect. There is a new tax for everyrhing these days seems like and its only increasing.
 
Fun facts:
As a consumer in most (every?) state you were required to remit sales tax to your state for any purchase where the seller did not collect it for you. So it’s not that you now have to pay it, you were always supposed to pay it. Now, the seller is collecting it for you which saves you hassle
 
Frogzilla said:
Fun facts:
As a consumer in most (every?) state you were required to remit sales tax to your state for any purchase where the seller did not collect it for you. So it’s not that you now have to pay it, you were always supposed to pay it. Now, the seller is collecting it for you which saves you hassle
Click to expand...
Plus they will increase prices to pay for the required management of the tax collection/submission process. Win-win, so long as you're the state government.
 

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