(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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    #27 4 years ago
    Quoted from JoeinNJ:

    Biggest issue I have with the sales tax,is if the item is used there was already taxes payed on most items when new. It’s not like there refunding the original seller any of the original sales tax they may of payed.

    Most items are taxed multiple times. Every part supplier pays tax, then tax is paid again on the next higher level assembly sold, and again by the wholesaler, and again by the retailer, and so on. It's really no different when you sell something used. Companies may not pay sales tax but they pay income taxes that are just another expense built into the cost of the item.

    #31 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).

    I understand that companies don't pay sales tax on parts that go into something down steam, and tried to indicate that by saying they don't pay sales tax, but they do pay income taxes that are built into the product price. By the time a consumer buys a product it has a huge amount of taxes built into the purchase price. Personally, I think it would be better if companies did not pay taxes, and all taxes were paid at the point of consumption. People would have a much better appreciation of the total taxes that they are actually paying.

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