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When did eBay start collecting Tax ?
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Silver Card Talk Member
posted
I just sold a Hammer Horror Costume Card on eBay to a buyer in the States. When I looked at the Paypal transaction details it included something I haven't seen before:

Tax Collected by eBay -£1.05

Can anyone enlighten me as to what exactly this tax deduction might be...other than yet another reason to stop selling cards on eBay ?
 
Posts: 1319 | Location: Warrington, UK | Registered: January 10, 2009Reply With QuoteReport This Post
Silver Card Talk Member
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OK, found it...I think:

https://community.ebay.co.uk/t...te-when/ba-p/6425608

Not good news for sales to the States Frown Twak
 
Posts: 1319 | Location: Warrington, UK | Registered: January 10, 2009Reply With QuoteReport This Post
Platinum Card Talk Member
Picture of Raven
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In the US we have both Federal and State sales tax. The Federal taxes are set at the same one rate, but State sales taxes vary by State. I think one or two may not have any on the books, but most seem to fall somewhere a little over 4%. There are also items that are exempt from sales tax in some States, like clothing. If you have a State sales tax, and its coupled with the Federal tax, you may be looking at taxes falling somewhere in the 8% - 9% range that gets added to your purchase price.

The big change in the last couple of years is that US residents are being required to pay State tax on applicable internet purchases, even though it may be between different States. Before you only had to pay the State sales tax if BOTH the buyer and seller were residing in the same State. Big internet sellers like Amazon had a huge advantage because that additional 4% or more of State sales tax was being waived in their inter-state transactions. Now we are being asked to pay State sales tax on all applicable items to all the sellers on internet purchases or any purchases really, no matter where the buyer lives. This has a big impact when you were only paying your own State sales tax before and it wasn't applied when you bought outside of your State.

I'm not sure to what percentage this affects the International buyer, but I am sure they are going to get you too, because the person who is selling to you isn't going to eat the additional money that he/she has to turn over to his/her State for the transaction. Somebody is going to want to collect that money, whether it's eBay directly, or Amazon directly or on their tax return.

It's not good news for internet sales no matter which end of the purchase you are on.
 
Posts: 7653 | Location: New York | Registered: November 20, 2007Reply With QuoteReport This Post
Silver Card Talk Member
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quote:
Originally posted by Raven:
In the US we have both Federal and State sales tax. The Federal taxes are set at the same one rate, but State sales taxes vary by State. I think one or two may not have any on the books, but most seem to fall somewhere a little over 4%. There are also items that are exempt from sales tax in some States, like clothing. If you have a State sales tax, and its coupled with the Federal tax, you may be looking at taxes falling somewhere in the 8% - 9% range that gets added to your purchase price.

The big change in the last couple of years is that US residents are being required to pay State tax on applicable internet purchases, even though it may be between different States. Before you only had to pay the State sales tax if BOTH the buyer and seller were residing in the same State. Big internet sellers like Amazon had a huge advantage because that additional 4% or more of State sales tax was being waived in their inter-state transactions. Now we are being asked to pay State sales tax on all applicable items to all the sellers on internet purchases or any purchases really, no matter where the buyer lives. This has a big impact when you were only paying your own State sales tax before and it wasn't applied when you bought outside of your State.

I'm not sure to what percentage this affects the International buyer, but I am sure they are going to get you too, because the person who is selling to you isn't going to eat the additional money that he/she has to turn over to his/her State for the transaction. Somebody is going to want to collect that money, whether it's eBay directly, or Amazon directly or on their tax return.

It's not good news for internet sales no matter which end of the purchase you are on.
For the record, I am/was the seller in this case and I got charged the tax. The buyer didn't have to pay anything beyond what he saw on eBay in my listing. eBay have deducted/taken the tax payment from the money the buyer sent me through Paypal. I'm in the UK. There was no mention of this on eBay in my account, it only appeared in my Paypal statement as an eBay deduction.

So right now, it is definitely affecting the amount eBay sellers in the UK are getting if they sell to someone in the States. Right now, there is nothing I can do to adjust my listings so that sales to the States can take this extra fee into account. I may have to consider blocking sales to the USA if I can't come up with a solution.

Oh yes, that £1.05p charge was on a £14.99p sale before deducting regular eBay and Paypal fees Frown Eek
 
Posts: 1319 | Location: Warrington, UK | Registered: January 10, 2009Reply With QuoteReport This Post
Silver Card Talk Member
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Kevin

Being in the UK should you be paying tax on what your sales on eBay and if so are you? I ask simply because it seems to me that in this day and age of internet shopping Countries/States/Counties consider that are losing out on tax on these sales.

regards

John

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Posts: 1564 | Location: United Kingdom | Registered: October 14, 2001Reply With QuoteReport This Post
Platinum Card Talk Member
Picture of Raven
posted Hide Post
quote:
Originally posted by Kevin F:
quote:
Originally posted by Raven:
In the US we have both Federal and State sales tax. The Federal taxes are set at the same one rate, but State sales taxes vary by State. I think one or two may not have any on the books, but most seem to fall somewhere a little over 4%. There are also items that are exempt from sales tax in some States, like clothing. If you have a State sales tax, and its coupled with the Federal tax, you may be looking at taxes falling somewhere in the 8% - 9% range that gets added to your purchase price.

The big change in the last couple of years is that US residents are being required to pay State tax on applicable internet purchases, even though it may be between different States. Before you only had to pay the State sales tax if BOTH the buyer and seller were residing in the same State. Big internet sellers like Amazon had a huge advantage because that additional 4% or more of State sales tax was being waived in their inter-state transactions. Now we are being asked to pay State sales tax on all applicable items to all the sellers on internet purchases or any purchases really, no matter where the buyer lives. This has a big impact when you were only paying your own State sales tax before and it wasn't applied when you bought outside of your State.

I'm not sure to what percentage this affects the International buyer, but I am sure they are going to get you too, because the person who is selling to you isn't going to eat the additional money that he/she has to turn over to his/her State for the transaction. Somebody is going to want to collect that money, whether it's eBay directly, or Amazon directly or on their tax return.

It's not good news for internet sales no matter which end of the purchase you are on.
For the record, I am/was the seller in this case and I got charged the tax. The buyer didn't have to pay anything beyond what he saw on eBay in my listing. eBay have deducted/taken the tax payment from the money the buyer sent me through Paypal. I'm in the UK. There was no mention of this on eBay in my account, it only appeared in my Paypal statement as an eBay deduction.

So right now, it is definitely affecting the amount eBay sellers in the UK are getting if they sell to someone in the States. Right now, there is nothing I can do to adjust my listings so that sales to the States can take this extra fee into account. I may have to consider blocking sales to the USA if I can't come up with a solution.

Oh yes, that £1.05p charge was on a £14.99p sale before deducting regular eBay and Paypal fees Frown Eek


Yes I understood you are the seller and it may not be the collection of State sales tax that caused eBay to impose your particular fee as an international seller. However that is what has started full tilt here this year and eBay and Amazon and all individual internet sellers are getting charged with somehow collecting and turning over this extra State taxes. The accounting is really beyond me, but computers can do anything and how these various actors choose to implement collecting this money seems to be up to their systems. So yeah, I'm sure we can't follow it and many people will wind up paying more and not know if it's right or wrong.

All I can tell you is that I use to get a sales tax break on nearly all my internet buying and now I'm not. eBay, and everyone else is paying more to collect and record these taxes, and I'm sure they are spreading the pain in the form of fees to all ends of the transaction. Best to talk to eBay about it, so you can at least up the prices of your items, if they are now taking out a bigger chunk for whatever reason they cite.
 
Posts: 7653 | Location: New York | Registered: November 20, 2007Reply With QuoteReport This Post
Member
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I am having a row with the N Z tax department about this at the moment and no luck
I was under the impression that it was a New Zealand thing , as on Dec 1 the N Z post started collecting GST tax %15 on all articles handled by N Z Posts overseas forwarding offices wich at the moment is a ....up.
You have to download a copy of your Pay Pal receipt before you can even pay to get your parcel sent
Apparently no receipt no parcel.
At the moment I am trying to get a traded item released as I do not have a receipt to download, they consider everything as being paid for it is getting out of hand
I also saw the E Bay extra charges and I thought that E bay were collecting the GST but as it is Xmas have so far had no luck, So if it is on other countries overseas invoices it must be something else
Unless your purchase was to a New Zealand customer,If so the tax will be only for the customer not the seller and put on the invoice for their purpose only
As a large operator E Bay will be registered as a GST collector for the N Z goverments tax department . I hope to find out more about this in the new year and will post further on it at a later date.
But by the posts it must be all over. If so it will be another tax I will have to pay wich when added up will be %30 for me it is now getting out of hand.
 
Posts: 398 | Location: New Zealand | Registered: November 22, 2016Reply With QuoteReport This Post
Gold Card Talk Member
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This is strange, the tax payment should be paid by the buyer -- even the page you linked says

"Please note the applicable tax will continue to be paid by the buyer and you do not need to take any action."

How this generally works in the US on most goods is that the seller (generally a retailer) will collect the tax from the buyer and send it to the government. The amount of tax depends on many things that are determined by the location of the sale.

So for example in Chicago the sales tax is over 10% -- let's round to 10% for easy math.

If you walk in to a store in Chicago and the price tag says $10 the buyer actually pays $11. The retailer keeps $10 and sends $1 to the tax collectors.

The same thing should be happening here. . . The $1.05 collect by eBay should be in addition to the amount you sold the item for.

If that is not what is happening you should contact eBay for clarification.
 
Posts: 4493 | Location: Parts Unknown. | Registered: January 25, 2001Reply With QuoteReport This Post
NSU Elf
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The sales tax is paid by the buyer. They make one payment on their purchase so you see what they paid in tax. It then comes right out in the fees. Here is the breakdown on a recent sale I had:

Purchase Total$12.00 USD
Sales Tax$1.07 USD
Shipping Amount$0.00 USD
Handling Amount$0.00 USD
Insurance Amount$0.00 USD
Gross Amount$13.07 USD
PayPal Fee-$0.68 USD
Tax collected by eBay-$1.07 USD
Net Amount$11.32 USD

I saw a gross payment of $13.07 but then a net of $11.32 after the paypal fee and sales tax were taken out.

The collection of taxes on ebay has been a slow roll. No idea how many are left that do not collect and there are a couple states that do not have state sales tax.
 
Posts: 714 | Location: Southern New Jersey | Registered: April 03, 2010Reply With QuoteReport This Post
Silver Card Talk Member
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quote:
Originally posted by Raven:
In the US we have both Federal and State sales tax.


Broadly speaking, the US has no Federal sales tax.
 
Posts: 1376 | Location: Huntsville, AL United States | Registered: November 30, 2002Reply With QuoteReport This Post
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Picture of Raven
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quote:
Originally posted by Bill Mullins:
quote:
Originally posted by Raven:
In the US we have both Federal and State sales tax.


Broadly speaking, the US has no Federal sales tax.


I neglected to write the sentence correctly, s/h/b "we have both Federal taxes and State sales tax". Sales tax is determined by State, however I'm sure both you and me are doing our part to allow the Federal government to spend our money. And it's really broad.Big Grin

I also think a portion of the State sales tax is subsequently sent to the Feds, so in the end everybody gets a piece of it, but its called other things. We are taxed multiple times for the same items, if you've noticed. Wink

This message has been edited. Last edited by: Raven,
 
Posts: 7653 | Location: New York | Registered: November 20, 2007Reply With QuoteReport This Post



Silver Card Talk Member
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quote:
Originally posted by Raven:

I also think a portion of the State sales tax is subsequently sent to the Feds,


No. When you buy something at retail, there may be sales tax. It may have a state component, and a local component. For example, sales tax where I live (Huntsville, AL) is 9%. 4% goes to the state, 0.5% goes to Madison County, and 4.5% goes to the city. None of it goes to the federal government.

The Federal govt gets about half its income from individual income taxes, about 1/3 from payroll taxes (Social Security and Medicare), and the rest from corporate income taxes and miscellaneous taxes (estate taxes, customs duties, excise taxes, etc.) No sales taxes (although there has been discussion several times of a Federal Value Added Tax, like the UK uses, which is similar in effect to a sales tax). It also borrows a bunch of money every year, which will have to be repaid in the future by taxes.
 
Posts: 1376 | Location: Huntsville, AL United States | Registered: November 30, 2002Reply With QuoteReport This Post
Platinum Card Talk Member
Picture of Raven
posted Hide Post
quote:
Originally posted by Bill Mullins:
quote:
Originally posted by Raven:

I also think a portion of the State sales tax is subsequently sent to the Feds,


No. When you buy something at retail, there may be sales tax. It may have a state component, and a local component. For example, sales tax where I live (Huntsville, AL) is 9%. 4% goes to the state, 0.5% goes to Madison County, and 4.5% goes to the city. None of it goes to the federal government.


Do the Feds know that? Wink

OK, I stand corrected. Somebody else is robbing me on sales tax. Big Grin
 
Posts: 7653 | Location: New York | Registered: November 20, 2007Reply With QuoteReport This Post
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Surely if you pay tax twice on the same item you can get some of it back or does not double taxation apply these days?

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Posts: 1564 | Location: United Kingdom | Registered: October 14, 2001Reply With QuoteReport This Post
Platinum Card Talk Member
Picture of Raven
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Money is taxed when you get it (payroll). Its taxed when you spend it (sales). Its taxed if you save it (on interest or distributions). That's just general, many more specific ones apply, It's all on the same money and that's what I meant by multiple times. You may get some of it back at the annual Federal and State income tax filings, or you may owe even more.

There are whispers about some sort of internet commerce tax maybe, to help brick and mortar sales I suppose. The other day I renewed the subscription on an annual service license, yes they charged sales tax. As we started the conversation about US sales tax, it was about having to pay State sales tax now on all applicable items purchased on the likes of eBay and Amazon regardless of the buyer's State residence.

International sellers and buyers transacting over sites like eBay or Amazon may be running into other reasons for added fees, postage, insurance and such, besides what we get domestically. Whatever the reason, if there's any change you know its going up in terms of how much it costs the buyer and how much gets deducted from the seller. Sometimes its weighted more on one end than the other, but it will slow down the business when sellers get less profits and buyers have to pay more. It may even be the intention. Big Grin
 
Posts: 7653 | Location: New York | Registered: November 20, 2007Reply With QuoteReport This Post
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Picture of BILLZEE
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Not a happy camper when paying sales tax on everything I buy on eBay...Even a small movie item I just bought from Serbia was taxed!
 
Posts: 2222 | Location: DFW | Registered: January 19, 2002Reply With QuoteReport This Post
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Me Too
Got a parcel from Australia the other day and thought the tax was NZ gst but found out it was Australian gst and NZ gst had not been added yet , the end result was %30 in additional tax .
Also US states tax is being added to my purchases it is getting out of hand, and there is nothing we can do about it.
I have been told by the Inland Revenue Dept that I will even have to produce receipts for traded items.
This will do our hobby no good as it will be prohibitive to buy and trade overseas.
We will see if anything happens when E Bay and Amazon get hit with reduced trade will they moan or just put additional fees on to make up for lost trade . Also sellers will have to raise their prices .
As this will surely hit their bottom line.
As an overseas buyer I am going to have to drastically reduce my purchasing.
 
Posts: 398 | Location: New Zealand | Registered: November 22, 2016Reply With QuoteReport This Post
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Picture of wolfie
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quote:
Originally posted by piko:

As an overseas buyer I am going to have to drastically reduce my purchasing.



Welcome to the club. My card purchasing has virtually ground to a halt ironically not because of the price of the cards but due to massive postage charges and now all these fees will just kill it. Buying anything from outside the country you live in is becoming a complete no no. Frown

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Come, it is time for you to keep your appointment with The Wicker Man.
 
Posts: 28042 | Location: wolverhampton staffs uk | Registered: July 19, 2002Reply With QuoteReport This Post
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quote:
Originally posted by wolfie:
quote:
Originally posted by piko:

As an overseas buyer I am going to have to drastically reduce my purchasing.



Welcome to the club. My card purchasing has virtually ground to a halt ironically not because of the price of the cards but due to massive postage charges and now all these fees will just kill it. Buying anything from outside the country you live in is becoming a complete no no. Frown


Ironically US shipping prices have gotten so high I've been buying more from outside of the US than ever before -- it's barely more expensive to get cards shipped from abroad now.

Annoyingly shipments from abroad often come registered and require a signature. . . it amazes me that I can get a card shipped from halfway around the world that requires a signature for about $5 (way cheaper than for the same service within the US). I often avoid auctions from ship registered because going to the post office while it is open to sign for a package is a hassle.
 
Posts: 4493 | Location: Parts Unknown. | Registered: January 25, 2001Reply With QuoteReport This Post
Silver Card Talk Member
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If possible it may well be more economical to buy in larger quantities. I received last week a box of cards totalling between 360-400 cards. It cost me $114 including shipping from the US to the UK. Upon arrival it attracted a charge of 20% VAT (a sales tax) being £15.30 plus a fee of £12 for the VAT to be collected. Thus adding an additional 35% to the total giving an overall cost of between 38 cents to 42 cents per card (all figures being approximate). None of this was using eBay.

The only real problem is the extortion fee being charged to collect the VAT and the exchange rate converting the VAT/Fee charge from US Dollars to £ Sterling.

regards

John

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Posts: 1564 | Location: United Kingdom | Registered: October 14, 2001Reply With QuoteReport This Post
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