Sales Tax Video- https://www.youtube.com/watch?v=MHCB4fYi7CQ
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Towards the end of this eBay sales tax update https://community.ebay.com/t5/Announcements/Upcoming-changes-in-how-Internet-Sales-Tax-may-apply-to-your/ba-p/28962962 it says "Prior to these dates, please continue to collect and remit tax in these states and comply with any other applicable requirements they impose. There are no opt-outs for selling items into the states listed above, or out of eBay automatically collecting sales tax for items shipped to the states above". So, between now and Jan 1, 2019 for Washington State and July 1, 2019 for Pennsylvania and Oklahoma, eBay will automatically charge sales tax on our behalf on all sales we ship to Washington State, Pennsylvania and Oklahoma, and we are responsible for reporting and paying these sales to the Washington, Pennsylvania and Oklahoma tax authorities. How will you plan to report and pay these sales taxes in Washington, Pennsylvania and Oklahoma?
That's not why states wanted an internet sales tax. It wasn't because sellers weren't paying the sales tax they owed, it was because customers weren't paying use tax on the items they bought online from out of state sellers. The state governments stated this complaint explicitly for years.
thank you for this video, always on top of your game...as a buyer in PA, the ebay purchase made yesterday came with a little note on the order page saying something like " if the seller has not already collected sales tax you may be responsible for PA use tax" ...something like that, not word-for-word, seller is in FL, curious if all buyers are getting notes like this
Does ANYONE know what the h3!! is up w/ eBay today, Sunday, 9/16? I've been on the phone for over 3-1/2 hours to ask 2 VIP questions. One is about a malfunction on THEIR website preventing me from accessing an edit function so I can combine 2 orders to the same person, send an invoice, then make sure I upload the tracking info for both. These are heavy dishes, so if they ship separately the buyer will pay almost $8 more in shipping. If it was clothes I'd just send it. The other is about an item a buyer received in record time, gave a positive feedback for and that both eBay and the USPS show hasn't even been delivered. Likely not scanned by the post office. Not trivial issues, and yet I can't even contact eBay. I may lose a sale if I can't get this straightened out! HELP! Any suggestions?
Oh but if you are in China you are ok. Consumers won't be force to pay taxes if they pay over there. Our federal government as of right now doesn't make them pay taxes and they can ship over here to my next door neighbor something that cost me $5 that only cost them 10 cents.
$.70. wouldn't be part of the profit... theres a federal income tax box to mark how much you paid in sales tax... HOWEVER I still don't think you have to include it.. ill check with my CPA friend.. this is why I have one on the back burner. for the gray areas
This will make Ebay less profitable so they will raise their rates. It will discourage consumers in general to list their stuff online because of the added cost so they just won't list it all together.
When you said you already send in your taxes quarterly. Does that mean your income tax quarterly?. Or have you already been charging Florida state taxes on everything you sell.? Thanks. When's the next Tampa meet up?
NO I was referring to STATE SALES TAX... I pay those quarterly for Florida (different for every state). Income tax (Federal im assuming you mean) is totally different. Depending on your business you pay federal income tax on April 15th or per quarter depending on your setup.
I have always charged sales tax for florida customers and paid it every quarter for years and years
Don't worry, Super Ebay will take care of everything..................LMAO, they still can't handle the simplest of tasks that WE PAY FOR! I give them 2.5 stars on their metric score.....................under standard for sure.
Hey Casey, thanks for updating us. I was waiting for this. But I don’t understand something. Why is there no talk about what the thresholds will be? Last time it was mainly about how much you would have to net, (or gross?), to see if you are making that amount, and if you aren’t then you are basically exempt from any of this. And the first state to proceed with the new law put their states threshold at like 100K. You were leaning towards believing that the majority of states would follow suit and put their states threshold similar to that. I was so happy thinking that my state (New York) would actually raise it from the present 20K to 100K (?) and I could basically relax as I don’t earn close to that.
You mentioned that these three states may possibly have no threshold, but you kind of relayed that you weren’t really sure. Is it possible that a states threshold now could be erased basically to no threshold?!! As in NY going from the 20K to $0 ? Can you or someone shed some light on this for me?
I would greatly appreciate it. I’m obviously confused and a newbie at this. Sorry for my ignorance. I’m still in the “Selling what I’ve gathered along the way in my journey through this thing called life” .. Phase. A lot of music memorabilia that I’ve collected. Hobby stage. I’m selling mostly all my stuff still but now I’m slowly starting to resell clothing and some hard goods from thrift stores, etc. So don’t really know what tax they would calculate and collect on me selling a Smashing Pumpkins shirt I bought at a show in 1995 and sold it now for $60. .. Etc., etc., etc.
Thanks in advance as always .. Rick.
These 3 states do not have a threshold.. they are simply taxing every single transaction for folks who reside in their state and buy items. those others states FOR NOW have threshholds... your state New York you go by the $20k currently or $100k if they raise it. They might change to no threshold at some point who knows.
If they put it to no threshold your still covered because this new thing the platforms are taking care of it..
If a buyer has a tax exempt form and contacts you they're buying it to resell it what do you do? Do you just refund them the tax or how does this work I'm about 60 sales deep into my journey and haven't encountered this just yet.
Good question. They might have to contact ebay to submit the sales tax certificate. You cant refund them the sales tax they pay because you don't get it.. The platform does and pays it for you.. So theres no way for you to refund them except out of your own pocket which would be nuts
Thanks for the info, Casey. This is what I figured would happen, mainly they don't want to get in trouble by being the cause of the sale and also they are going to make a little bit off the "float." Be glad when they roll it out for all states, especially Florida, which, as you know can be a nightmare with many counties having different sales tax rates.
OMG, and you think that taxing online resellers will help brick and mortar competitors? No, sir, I don't think so. IMO, taxing online resellers will hurt online resellers, and online buyers, and offline resellers, and offline buyers, and basically everyone. When things cost more, less things get purchased from less places by less people. From what I understand, that is the opposite of growth.
Seriously, it's like saying a tariff on steel will help the steel industry compete in the global marketplace. Yeah, sure, maybe, but at what cost? A tariff on steel makes it that everyone pays more for steel - no matter if it's for raw materials or for a final product. Even those in the steel industry are negatively affected!
If industries can't compete in a changing marketplace, propping them up with tariffs or taxes only serves to hurt everyone and delay the inevitable. If brick and mortar resellers can't compete with online resellers, they need to innovate or resign themselves to their fate and find more productive work for themselves.
What, do we need to tax computers, so we can bring typists back, and tax typewriters, so we can bring transcriptionists back? A ridiculous strawman, indeed (lol - sorry). It's ridiculous because innovation did away with the need for transcriptionists and typists. Innovation improves productivity. And, increases in productivity serve to make life better for everyone. :)
This is the truth. Taxation is theft that kills businesses. Politicians are having a party over this, it's exactly what they wanted. Money grab. It's going to be bad for online sales and all sales. I think consumers will try to move anywhere they can avoid the tax, I'm thinking maybe smaller marketplaces. In case anyone doesn't realize, buyers have been going to Ebay to avoid tax. If they have to pay it they are going to look elsewhere. The marketplace just got a lot more competitive. Brick and mortar and direct retail websites will be able to offer better incentives and buyers who have been coming to Ebay to avoid tax will go wherever they are incentivized. If you sell collectible unique or one of a kind items this might not affect you as much but for retail arbitrage and goods available across multiple marketplaces, it's bad. Very bad.
Agreed. People will still buy things. Think about it, though. If everything that was not previously taxed is all of a sudden taxed, on the whole, less of that everything will be purchased. People will buy less on eBay and Amazon and look more to FBM, Letgo, OfferUp, CL, etc., to avoid the extra cost. Or, they may choose to not buy that 'want' at all. I'm not saying everyone will stop buying online or stop buying entirely, just because of a little tax. But, on the whole, the market will be affected. Taxes do not lead to growth. Taxes lead to decline.
Also, let's say that you are completely correct, and everything that was going to be sold online sans tax still ends up being sold online with tax. Well, that just means that there is less money in people's pockets for other products and services. Trust me. This blanket taxing of online reselling will hurt everyone in some way. States may gain some extra bucks in tax revenue, but we all know that government is not the best at spending money wisely.
People still need things.. still want things. and are still going to buy things. PERIOD.. EVERY SINGLE ITEM will be taxed the same, so theres no way for a buyer to get around it... Thus the same amount of items will sell
"it does not affect you at all" - Ummm... yes, it does. This is not good news. This is crony capitalism at work - maybe not that blatant. It's just inherent in the system now. This squeezing of the reselling market does no one any good.
Rockstar... I see your point. You were speaking in regards to sellers having to report sales tax to a number of states. And, given the collection system that seem to be emerging, it does seem like the process will be seemless for sellers.
However, to the greater point of this not affecting everyone because everyone is getting taxed - I will have to respectfully disagree. It may appear to not change anything, because everything gets taxed the same. But, IMO it will negatively affect the marketplace. Individual sellers and resellers may not notice the effects, especially immediately. But, it will affect everyone.
And, the fact that eBay is helping the government collect their new online reselling taxes, is evidence that a bastardized form of capitalism is in play here - one that sacrifices the free market for a survival of the biggest.
Scarlet Spider... I don't want the government getting more money in the first place. They get far too much money now, and they don't utilize much of any of it effectively. States that have lost sales tax to online sales have undoubtedly made up for it in other tax rates and sources. When the online tax revenue stream comes through, I doubt they would reverse any of those additional taxes.
You can't tax your way out of mismanagement. Throwing money at failing government doesn't fix failing government. ... IMO
I'm still scared of this tax thing. I don't trust ebay, they are incompetent, glitchy and made way too many mistakes on trivial things. If they messed up my taxes I can get into some serious trouble because of them, I bet they will put it in their user agreement that if they messed up our taxes they will not be held accountable. Can you imagine being screwed over like that? Travelling to many different states courts and the money owed plus interest and the cost of travel and legal fees. The governent won't care if it was an honest mistake they have no mercy to give.
I agree with you on that, because no matter what eBay says, it WILL happens at some point. Also, who is going to check that eBay is keeping the correct amount for taxes and not keep this supposedly tax money just as another extra fee/money in their pocket ?... Who is going to check eBay accounting books anyway to see if the numbers checks out ?
It is a disadvantage to us as online sellers and its not overall a fair playing ground. It's a vacuum of overall money going from the small business owner and consumers to the States (government). It will make all online sales less attractive and shift some sales to the brick and mortar locally. Plus take in consideration that we still have to ship items. Brick and Mortar does not. This is not good. 70 cents doesn't seem too bad on a 10 dollar item. 7 bucks on a 100 item does. Plus I buy a ton of inventory online to resell back on line. So now I have to pay an additional 7 to 10 percent on purchasing the item to resell. There will now be many items that are not profitable to resell or sell in general. This is horrible.
There are so many dollars available to go around as far as their value. The 7 or 8 percent of the overall pie that was going into consumer's pockets and the middle class (a lot of online sellers) will in a breath be shifted from the middle class to the government. The government then wastes that money making toll roads and a lot goes to welfare, 5k pay raises for lazy government officials, and more money to stop you doing from living your life as a citizen. It will be less money consumers have to pay to buy our stuff. I know macroeconomics. You have no idea what a blow this is for the middle class and small business owners. It will be less profit for Ebay so they will raise their rates. It will make items harder to sell so people just want list stuff online that we can buy.
Interesting point. Are they going to RE-tax previously taxed USED items? Likewise should online arbitrageres with a local reseller certificate have to pay tax on items they are buying on one site e.g. Amazon to immediately sell on another e.g. eBay? Finally what happens if you buy an item and have it sent directly to a friend in another state as a gift? I can forsee buyers registering as in a low tax state and having everything sent to their REAL address in a high tax state if they tax the buyers registered state. Just saying...
Thanks Casey! Appreciate the heads up! I have a ? I don’t know if you can answer everything I’m selling is either Vintage My Collectibles, and BNOS. I’ve already paid taxes and I’m taking a loss on each item from time of Purchase-but I didn’t save my receipts or have my moms or my grandmas from 1950-1960 and earlier. I don’t mind but I’m lost with the concept because the taxes have already been paid and I’m not making $$ over the original price. It’s all a loss. Thank you if you can answer. I do what I’m supposed to be doing yet can’t understand the Concept! Take Buddy and I’m so Excited for almost 100,000 followers! “Congratulations” You always have been a Rockstar in my Eyes and Always will.
I live in Fl. However if I lived in Pa and I was remitting tax from buyers from Pa to the state-once this starts does the Pa seller no longer have to report and remit tax quarterly or whatever their schedule is? I absolutely hate having to do that and if Ebay was paying the tax to my home state and I no longer would have to do it myself--well I say hey Florida-do what PA is doing!
I don't know if every state is like this but here in California, you have to have a sellers permit and the sales tax is connected to it, so eBay wouldn't be able to remit tax on my behalf in my home state.