Ebay sales tax

[fanfourforever]

Has anybody been charged sales tax on Ebay? I bought a book on Ebay the other day and was surprised to see that I was being charged sales tax. Seller tells me he is in New York (which by the way is not mentioned in his listing) so I have to pay tax (I'm in NY too). Who is collecting this tax? The seller? Ebay/Paypal? Knowing there is a sales tax is certainly going to effect my bidding. Do I have to ask all sellers where they are located now? There is a spot on all auctions for sellers location, but most sellers just put any comment they want there.

[genrlzod]

In the past I have been charged sales tax, but only when the seller was in my state (PA). Also they are usually a business to begin with.

I have always known before I bid that there will be sales tax for the seller would list it in their description. I have just come to assume that if it's not in the description, there they won't charge sales tax.

 

That beings said I believe New York passed a law stating that sales tax had to be collected on internet sales, targeting business like Amazon. Not sure how this effects a listing on ebay.

[USArmyParatrooper]

Has anybody been charged sales tax on Ebay? I bought a book on Ebay the other day and was surprised to see that I was being charged sales tax. Seller tells me he is in New York (which by the way is not mentioned in his listing) so I have to pay tax (I'm in NY too). Who is collecting this tax? The seller? Ebay/Paypal? Knowing there is a sales tax is certainly going to effect my bidding. Do I have to ask all sellers where they are located now? There is a spot on all auctions for sellers location, but most sellers just put any comment they want there.

 

Transactions that cross state lines are exempt from state and local sales tax. But if you purchase something on Ebay that is from a business (not a private individual) that resides within your state you are subject to sales tax rate of that state.

 

Basically it's then no different than walking inside the store and buying the item. I'm not sure how local (county) sales tax applies, if at all.

[USArmyParatrooper]

That beings said I believe New York passed a law stating that sales tax had to be collected on internet sales, targeting business like Amazon. Not sure how this effects a listing on ebay.

 

Boy will that hurt small businesses who do online retail sales. If that's true I'm going to avoid bidding on any auctions from stores in New York.

 

Edit: Better yet I'll bid X percent less based on the sales tax rate.

[FlamingCarrot]

Usually a seller will state in the auction description that there is a sales tax, but sometimes it's indicated in the "shipping and payments" tab, which is right next to the auction descriptions tab.

 

 

[Iceman399]

I know in Canada alot of sellers (low star ones) try and pull in some extra amounts by charging taxes. Here everyone has a HST number that says they are a business and have to charge tax for individuals in that province etc. Not sure if its the same in the South. So if you do have "tax" numbers ask for it. If they can't provide you with one then take it up with ebay for unreasonable seller terms.

[Kevlar]

That beings said I believe New York passed a law stating that sales tax had to be collected on internet sales, targeting business like Amazon. Not sure how this effects a listing on ebay.

 

Boy will that hurt small businesses who do online retail sales. If that's true I'm going to avoid bidding on any auctions from stores in New York.

 

Edit: Better yet I'll bid X percent less based on the sales tax rate.

 

I don't like paying sales tax any more than anyone else, but TECHNICALLY, if you purchase something from another state, you don't pay the sales tax there because you need to pay them in your home state.

 

Now ask yourself how many people actually pay the sales tax and there's the reason states are pushing for mandatory sales tax from the big companies. Once the big companies have to pay it, they'll go after the smaller ones.