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When did ebay start collecting tax?

Posted on 1/13/18 at 11:23 am
Posted by Eli Goldfinger
Member since Sep 2016
32785 posts
Posted on 1/13/18 at 11:23 am
I sold a couple of used recurve bows on ebay last year. Nothing major, maybe $1000 total. It had been probably 13 years since I had sold on ebay, and back then I had an outdoor shop and would dump stagnant inventory on ebay just to keep revenue flowing. I was never asked to collect tax then, and was never sent a late-year invoice by ebay to catch up.

Anyway...ebay sent me an invoice for around $75 back in December. I thought it was just another email scam, so I ignored it. Last Thursday I received a call from an Indian fellow (dot) saying he was collecting a debt. I told him to eat a dick and immediately contacted ebay to verify. It turns out I owed them $75 for selling those used bows.

When did this change of policy happen?

I can’t believe anyone uses ebay to sell their used stuff if this is standard.
Posted by TenthTiger
Member since Jan 2018
262 posts
Posted on 1/13/18 at 11:30 am to
Have never sold anything to anyone I didnt personally know..

I find it much better that way, and usually if im trying to get rid of it someone I know needs it.
Posted by East Coast Band
Member since Nov 2010
66950 posts
Posted on 1/13/18 at 11:32 am to
The government wants thier cut of EBay's sold shoplifted merchandaise.
Posted by DecadePlusLurker
Member since Sep 2016
658 posts
Posted on 1/13/18 at 11:36 am to
Last I checked, (a few years ago) ebay charges a percent of final sales for individual items, then a percentage of monthly totals. Which I agree, is bullshite. But it sounds like they weren't able to draw from your account on their second billing and turned it over to a collector.

Had your sister wife recently cleaned out your joint account, or were your funds tied up in meth production?
Posted by Eli Goldfinger
Member since Sep 2016
32785 posts
Posted on 1/13/18 at 11:37 am to
I have about $250 in my paypal account. Not sure why they didn’t just hold that hostage. They for damn sure like to hold onto the money when someone pays you via paypal.
Posted by lilyankems
Member since Sep 2004
725 posts
Posted on 1/13/18 at 11:40 am to
It is a selling fee. Every transaction has one and it is a percentage of the price the item sold for.
Posted by dcrews
Houston, TX
Member since Feb 2011
32130 posts
Posted on 1/13/18 at 11:42 am to
If you are selling to someone within your own state, you are required by law to collect sales tax on that sale, and remit to the state.

However, if you make a sale (or total yearly sales under $4 million) to an individual(s) across state lines, you are not required to charge tax. I would assume the responsibility to remit sales tax in this case, rests on the buyer.

Obviously, if you are purchasing items for re-sell, then you need the appropriate state, parish, etc... resale certificate to avoid paying sales taxes on YOUR purchases.

ETA: After re-reading, I'm not sure why Ebay would be the one to be collecting money if it were a sales tax issue. I would imagine the other posters are correct in assuming it's some sort of fee for using their site to sell items.
This post was edited on 1/13/18 at 11:46 am
Posted by Beessnax
Member since Nov 2015
10831 posts
Posted on 1/13/18 at 11:45 am to
quote:

It is a selling fee. Every transaction has one and it is a percentage of the price the item sold for.



This is absolutely correct.

I've sold on eBay for years.
Posted by Eli Goldfinger
Member since Sep 2016
32785 posts
Posted on 1/13/18 at 11:46 am to
No...I had already paid the selling fee.

This was specifically for tax.
Posted by Crimson1st
Birmingham, AL
Member since Nov 2010
20838 posts
Posted on 1/13/18 at 11:55 am to
It is probably like at a casino where they have a threshhold...as in if you hit a jackpot over a certain amount they make you sign paperwork for taxing purposes.Since you mentioned $1k for it...that might be where they step in with the tax. I have also seen it collected before when it was a same state sale.
This post was edited on 1/13/18 at 11:59 am
Posted by keakar
Member since Jan 2017
30152 posts
Posted on 1/13/18 at 12:05 pm to
its a states issue, some state require ebay to charge taxes on anyone from their state selling on ebay.

when buying on ebay, always check the numbers at check out to be sure you arent being charged taxes on it.

i dont care if i have to pay $1.50 more for an item from a different seller to avoid paying taxes because its about what is right and fair and its about the principle of government over reach.

long ago i stopped buying from amazon when they started charging taxes, if i have to pay taxes there is never any reason to buy anything online.

only physical business can charge taxes for the places they are in, online internet sales should never be taxed and its theft to try to take these taxes by force
Posted by Backinthe615
Member since Nov 2011
6871 posts
Posted on 1/13/18 at 12:37 pm to
I was suprised by this as well, I’m going to check Craig’s List on their policy next time I sell something. They might be the same, but hell I sold a car last year on Cars.com and didn’t pay a dime for their service.
Posted by Geauxdaddy88
Baton Rouge
Member since Feb 2009
885 posts
Posted on 1/13/18 at 12:39 pm to
I sell a few items on eBay. I pay a final fee that is based on the final selling price PLUS a shipping fee that they charge on what I charge for shipping. The fee on shipping is BS in my opinion.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
37388 posts
Posted on 1/13/18 at 1:48 pm to
quote:

long ago i stopped buying from amazon when they started charging taxes, if i have to pay taxes there is never any reason to buy anything online.

only physical business can charge taxes for the places they are in, online internet sales should never be taxed and its theft to try to take these taxes by force


You're only partially right. Amazon does have physical presence in alot of states so they are required to collect tax. For example, they have distribution warehouses in Texas so they have a physical presence there. Depending on where you live you may be right or wrong.

As to the OP, eBay should not be collecting tax for you. It's not their responsibility. It would he yours to remit to the state, and if that's all you sold in most states you will be what is considered a occasional seller or wording of the sort.

I would see what's going on with evay and make sure they aren't just trying to get more money from you. And if they aren't you can tell then to kick rocks anyway you have no obligation to remit tax to them unless they have it somewhere in the terms and conditions.
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