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Amazon and eBay now applying taxes?

Posted on 7/25/20 at 9:43 am
Posted by Will Cover
St. Louis, MO
Member since Mar 2007
38551 posts
Posted on 7/25/20 at 9:43 am
I realize Amazon applied taxes to items purchased from and shipped from Amazon. It used to be that you could skirt around this if you bought from an individual seller on Amazon. Now it appears to not be the case.

Same for eBay. Taxes are being applied upon checkout. How is this being handled? Are eBay and Amazon collecting the tax on behalf of the seller and paying it on behalf of seller to their local and state governments? Because if not, they should not be collecting it.
This post was edited on 7/25/20 at 9:44 am
Posted by Byrdybyrd05
Member since Nov 2014
25714 posts
Posted on 7/25/20 at 9:44 am to
Yep, I was buying stuff on eBay and was not expecting that.
Posted by The Third Leg
Idiot Out Wandering Around
Member since May 2014
10052 posts
Posted on 7/25/20 at 9:44 am to
I think this started several years ago.
Posted by WDE24
Member since Oct 2010
54140 posts
Posted on 7/25/20 at 9:46 am to
quote:

Are eBay and Amazon collecting the tax on behalf of the seller and paying it on behalf of seller to their local and state governments
Do the funds go to Amazon/eBay or pass through directly to the third party seller? I always thought the payment went directly to the third party seller. If so, I assume they are collecting and paying the sales tax.
This post was edited on 7/25/20 at 9:47 am
Posted by Will Cover
St. Louis, MO
Member since Mar 2007
38551 posts
Posted on 7/25/20 at 9:46 am to
Not on eBay. No taxes for items I have purchased were ever collected on eBay. This has been a recent development.

Amazon, yes, but there has always been a way around it.
Posted by LoneStar23
USA
Member since Aug 2019
5178 posts
Posted on 7/25/20 at 9:46 am to
Uncle Sam needed more moneys
Posted by Will Cover
St. Louis, MO
Member since Mar 2007
38551 posts
Posted on 7/25/20 at 9:48 am to
For an item that is used, let’s say for example a Roku stick, why would this need to be taxed again on eBay?

It’s not a car. It’s a simple electronic device. No different than selling in person or listing in CL. A seller would not be collecting or paying their government taxes on this. So where does this money go?
This post was edited on 7/25/20 at 9:50 am
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
71155 posts
Posted on 7/25/20 at 9:48 am to
quote:

Are eBay and Amazon collecting the tax on behalf of the seller and paying it on behalf of seller to their local and state governments? Because if not, they should not be collecting it.


Yes.

Online purchases are now taxable. Makes it easier on the seller if the platform handles it. Otherwise the seller has to regularly file and remit to 50 states and thousands of counties, school districts, and municipalities.

I worked on a project once where I did that for a third party seller on Walmart's site. There was a spreadsheet column where I had to categorize each item they were selling, and Walmart used the code and its database to calculate the tax based on the seller's address.
Posted by WPBTiger
Parts Unknown
Member since Nov 2011
31082 posts
Posted on 7/25/20 at 9:49 am to
quote:

I think this started several years ago.


Ebay just recently started this.
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
71155 posts
Posted on 7/25/20 at 9:50 am to
quote:

For an item that is used, let’s say for example a Roku stick, why would this need to be taxed again on eBay?



On eBay you classify as new or used. Used would most likely be exempt. Mistake on eBay's part if it has tax.

Posted by Will Cover
St. Louis, MO
Member since Mar 2007
38551 posts
Posted on 7/25/20 at 9:51 am to
quote:

On eBay you classify as new or used. Used would most likely be exempt. Mistake on eBay's part if it has tax.



I’ll look more into this.
Posted by fightin tigers
Downtown Prairieville
Member since Mar 2008
73681 posts
Posted on 7/25/20 at 9:52 am to
The sales tax is being collected by the seller except a few states (I don't think La is one) where eBay is forced to collect.
Posted by ezride25
Constitutional Republic
Member since Nov 2008
24299 posts
Posted on 7/25/20 at 9:53 am to
LA was one of the last states to adopt this. The state feels they should get their piece of any “economic presence” in their state. For new sales, ok I’ll play. But for used items, already taxed, I don’t think states should have carte blanche to tax a used item every time it is sold and resold. That’s double dipping. It’s not allowed with salsa, queso, or taxes imo.
Posted by WDE24
Member since Oct 2010
54140 posts
Posted on 7/25/20 at 9:53 am to
quote:

If you sell to buyers in the US, some states may require you to collect applicable Internet Sales Tax on your transactions. As of April 1, 2020 a total of 40 jurisdictions require the collection of sales tax. In such cases, eBay collects and remits Internet Sales Tax on your behalf.
Posted by Aristo
Colorado
Member since Jan 2007
13292 posts
Posted on 7/25/20 at 9:53 am to
It started a few years ago in Louisiana. Amazon and eBay collect for the state.
Posted by Will Cover
St. Louis, MO
Member since Mar 2007
38551 posts
Posted on 7/25/20 at 9:53 am to
EBay is collecting for Louisiana, whether required to or not.
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
27075 posts
Posted on 7/25/20 at 9:55 am to
quote:

But for used items, already taxed, I don’t think states should have carte blanche to tax a used item every time it is sold and resold.


It would be nice not to have to pay sales tax on used cars anymore...
Posted by TDsngumbo
Alpha Silverfox
Member since Oct 2011
41633 posts
Posted on 7/25/20 at 9:55 am to
This post was edited on 7/25/20 at 9:56 am
Posted by Sidicous
Middle of Nowhere
Member since Aug 2015
17185 posts
Posted on 7/25/20 at 9:56 am to
quote:

Uncle Sam needed more moneys


It's not Uncle Sam getting sales taxes.

It's local and states getting their handout money. Never a budget cut always a new tax. Gimme! Gimme that too! Gimme some more!

100% taxation is not enough. Gimmegimmegimme!!!
Posted by Will Cover
St. Louis, MO
Member since Mar 2007
38551 posts
Posted on 7/25/20 at 9:56 am to
Aside from the two biggest players in e-commerce, what are some alternative e-commerce websites that perhaps aren’t as sophisticated or have the resources to collect on behalf of the seller and actually put the burden back on the seller?

For instance, NewEgg (and I am just using this an example - have no true knowledge if they collect and pay on behalf of seller).
This post was edited on 7/25/20 at 9:58 am
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