(Topic ID: 253348)

Ebay Sales Tax Shennanigans

By Barakawins1

4 years ago


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  • 43 posts
  • 29 Pinsiders participating
  • Latest reply 4 years ago by jackd104
  • Topic is favorited by 1 Pinsider

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    #22 4 years ago

    The golden age of online purchases is rapidly coming to a close.

    Just recently, I've bought *used* stuff on ebay, and have been getting charged sales tax from sellers in various states, from Canada, and from Germany. It's crazy.

    #26 4 years ago
    Quoted from RustyLizard:

    Will they be collecting taxes on sales from individuals selling their unused stuff or just from those that act as a business?

    They aren't requiring individuals to handle sales tax, but they still charge it to the buyer. That's probably why there are two separate charges for it; I'm guessing it has something to do with their accounting and handling of that.

    [edit]: The technical term is Marketplace Facilitator legislation, for those who want to dig into it further.

    #30 4 years ago
    Quoted from wamoc:

    That is actually incorrect. Taxes are only supposed to be collected on the final sold product. If you are purchasing a part that goes into something that will be sold you are supposed to be tax exempt on it (note: only if it is going into a later purchasable product, things like office supplies that are being used by the business still need to pay sales tax on). Items purchased for reselling are also supposed to be tax exempt (some people may be doing it wrong).

    It's usually referred to as a resale certificate.

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