eBay

sylviebee · ‎03-23-2019

I don't normally send invoices but this morning I started to do so and noticed that there is an added Sales Tax on an item I sold to the States.

Is this something new or has it been going on for a while?

Is this just for items sent from outside the US or are American's getting this tax added on even when they buy from the inside the States?

Does this apply all sites or only to eBay?

This sucks and it's bound to hurt business. 😞

sylviebee · ‎03-23-2019

Have to say I'm a little freaked out about this added sales tax.

Of all the changes to selling on eBay over the years this is the one that will really hurt if it's now a regular thing to add sales tax to US shipments.

The same way that the GSP has affected Canadians buying on eBay this sales tax will affect Americans buying from outside the US if it's what I think it is.

EBay Canada has been working so hard at getting the site off the ground but if the sales tax is now a regular thing that's really gonna hurt.

If it's also applied to all eBay sales within the US as well............... then not so much.

sylviebee · ‎03-23-2019

It's already started: My first and only sale with this added tax and the buyer cancelled almost immediately.

marnotom! · ‎03-23-2019

@sylviebee wrote:

I don't normally send invoices but this morning I started to do so and noticed that there is an added Sales Tax on an item I sold to the States.

Is this something new or has it been going on for a while?

Is this just for items sent from outside the US or are American's getting this tax added on even when they buy from the inside the States?

Does this apply all sites or only to eBay?

This sucks and it's bound to hurt business. 😞

This is an announcement from the eBay.com Announcements page to this effect:

https://community.ebay.com/t5/Announcements/UPDATE-Ongoing-Changes-in-How-Internet-Sales-Tax-May-Imp...

The thing is, it's called an "internet sales tax" and it's what raised hackles during the Obama administration, but what it really is is the "use tax" that 40-odd US states and some cities have on out-of-state purchases. It's just that with the Supreme Court decision, these jurisdictions now have more teeth for collecting these taxes. Previously, most states made buyers calculate the tax themselves and add it as a line item on their income tax. Needless to say, most buyers didn't bother with that for reasons that I'll leave to speculation.

As you've guessed, these "internet taxes" apply to all out of state purchases. I really doubt they're going to have much of an impact on e-commerce once buyers figure out that they're the same taxes they'd be charged on a purchase made within their own state. I don't even think the GSP has made much overall difference to how many non-US or non-UK buyers buy on eBay, but that's for another thread. Besides, I don't think most buyers make internet purchases for the sole reason of avoiding sales or value-added taxes. They may grouse about being charged taxes, but I don't think that's the same as trying to avoid them in the first place.

sylviebee · ‎03-23-2019

That's good to know. I could see that it's not an import tax and so I suspected that American sellers will charge it as well.

Since that's the case it shouldn't matter too much.

However, I rarely have cancellations and this is the first time I've seen that added tax and it's also a rare cancellation so I have to think that the tax caused the cancellation or at least has something to do with it.

2nd-time-around-jewelry · ‎03-23-2019

I had this happen to me a few times lately when I sent out an invoice to the US. First time it freaked me out, but then I remembered the announcement made about it. And it isn't every state that collects the tax, but only a few right now.

marnotom! · ‎03-23-2019

@sylviebee wrote:

I rarely have cancellations and this is the first time I've seen that added tax and it's also a rare cancellation so I have to think that the tax caused the cancellation or at least has something to do with it.

The buyer may be confused about being charged their state sales tax on an item from a Canadian seller. They'll likely be kicking themselves for passing on buying from you when they try making a similar purchase from another out of state seller.

sylviebee · ‎03-23-2019

@marnotom! wrote:
@sylviebee wrote:

I rarely have cancellations and this is the first time I've seen that added tax and it's also a rare cancellation so I have to think that the tax caused the cancellation or at least has something to do with it.
The buyer may be confused about being charged their state sales tax on an item from a Canadian seller. They'll likely be kicking themselves for passing on buying from you when they try making a similar purchase from another out of state seller.

No, this buyer knew what was going on. I was curious so asked her about it and she told me that it's been going on for the past year and the tax is the main reason she cancelled.

lotzofuniquegoodies · ‎03-23-2019

It's too bad that if these various random taxes are going to be applied to sales( Provincial - PST/GST/HST), State, Australia, etc) that it couldn't be itemized/broken down on eBay's packing slip(customs documents where applicable) so everyone is in the loop as to what these surcharges are for. Most other internet retailers are able to show on their invoices/packing slips. This way no questions when an item arrives. This should be standard business practice.

-Lotz

femmefan1946 · ‎03-23-2019

Canadian sales taxes can only be charged by Canadian sellers who are registered to collect and remit them.

Imports over $20 Cdn are liable for Canadian sales taxes.

This isn't a change, although if the new NAFTA is ever passed by Parliament and Congress, the sales tax free allowance will rise to $40Cdn

US state sales taxes will be assessed on all purchases, so if the buyer in one of those states buys anything online, they pay the sales tax. The first time might be a shock, but they will get used to it.

Same goes for Australians, although, unlike Canada, thier duty-free (but not sales tax free) allowance is $1000Aus.

I wonder if we will see Americans opening out of state mailboxes to avoid the sales taxes? There's a business opportunity there.

lotzofuniquegoodies · ‎03-23-2019

My issue is should be displayed accurately. What I have seen on shipments from Canadian sellers that charge taxes and "accidentally" include a packing slip is the generic "Sales Tax". Technically it should be broken down to show what the tax is so as a customer you know you are being charged properly. Same for outbound. When it's disguised it looks like a business is short-cutting procedures.

If you go Wally World or Staples(either in store or mail order) any extras are clearly itemized. Taxes, Shipping, Enviro charges, processing etc...eBay/Shippo does not seem to have the programmers to complete functions like this properly. It's accounting 101. Not rocket science. Similar to the Shippo emailed invoice we receive that gives an invoice number/amount but don't reference the tracking number or who the package was going to like Paypal does. To view the transaction-shipment it relates to, you need to download each transaction to see the specific details.

-Lotz

PS. For state taxes, in reality, it should specify the State/specific %, besides the amount. Again. it's all about clarity.

femmefan1946 · ‎03-24-2019

I don't understand.

What I have seen on shipments from Canadian sellers that charge taxes and "accidentally" include a packing slip is the generic "Sales Tax".

Why would including a packing slip be accidental?

Many sellers don't bother, just another piece of paper to throw away, but many do.

Calling something Sales Tax isn't generic.

It may be more generic than GST alone, or HST for those provinces, or separating GST and PST for the other provinces, but it's all the sales tax for the province of the recipient.

Technically it should be broken down to show what the tax is so as a customer you know you are being charged properly.

For private buyers, the breakdown in unimportant. For businesses, who want the more precise amounts as tax credits, there is a point.

I just looked at a couple of cashier's tapes from my purse.Canada Post has BC tax combined at 13% (although technically we have them separated) as did the comic book store. The office supply store separates them-- possibly because they do a lot of commercial business.

If an eBay seller is normally dealing with businesses, it would make sense to separate GST and PST , otherwise, meh.

Same for outbound.

The seller is not charging US state taxes. Even the US sellers are not charging US state taxes.

Those taxes are being charged by eBay and remitted to the states who are now collecting taxes from online sales.

I'm a little surprised that the sellers are even seeing those state taxes appear on packing slips or on invoices.

Just as US sellers are unaware of Canadian duty and sales taxes being charged on their exports to Canada.

And-as a side note- the seller is not responsible for refunding those taxes if a transaction goes bad.

For state taxes, in reality, it should specify the State/specific %, besides the amount. Again. it's all about clarity.

The buyer knows what state he's in.

And is the one responsible for knowing what state taxes are.

Also those receipts I mentioned? None have the percentages, so I'm assuming that this is not required in the legislation.

And again, for the seller, who has nothing to do with the state tax, it is irrelevant.

marnotom! · ‎03-24-2019

@sylviebee wrote:.
No, this buyer knew what was going on. I was curious so asked her about it and she told me that it's been going on for the past year and the tax is the main reason she cancelled.

This almost-buyer sounds a bit flaky and you may have dodged a bullet in not having to sell to her.

If she has feedback as a buyer from the past three months, she's been paying tax on her purchases unless they're items that are tax-exempt. She's going to have a very difficult time buying on eBay or other e-commerce sites if she's intent on not paying sales tax that would be applied to the same item purchased in her home state.

marnotom! · ‎03-24-2019

@lotzofuniquegoodies wrote:

My issue is should be displayed accurately. What I have seen on shipments from Canadian sellers that charge taxes and "accidentally" include a packing slip is the generic "Sales Tax". Technically it should be broken down to show what the tax is so as a customer you know you are being charged properly. Same for outbound. When it's disguised it looks like a business is short-cutting procedures.

Keep in mind that most Canadian sellers are small-potatoes operations and there's a good chance that they're using accounting/invoicing software that wasn't developed in this country. The descriptor "sales tax" may be the only option this software provides, rather than "GST", "PST", "HST", etc.

lotzofuniquegoodies · ‎03-24-2019

@marnotom! @femmefan1946

My thinking, going forward as they add these new taxes eBay should be proactive and be updating them, building them into the provided paperwork for eBay/Paypal or Shippo as they happen for ANY seller/customers requirements. The reason I include a packing slip is quite often I am dealing with businesses. They need a hard copy. It's a requirement for receiving. Has been for years. If they so choose to dis-guard that is their choice. For regular customers if they see those charges they know what they are for. The reason for showing for customs is so they have the breakdown and are only charging duties and taxes on the item and not on the shipping/tax portion.

Another thing to consider is if these various taxes were shown/explained we would know they are being applied accurately and correctly. It wouldn't be the first time calculations have been done wrong somewhere in eBay. Personally, reviewing my monthly eBay invoice gives me a major headache! Maybe that's just me. Anyone ever ask eBay to audit their invoice for accuracy?

-Lotz

sylviebee · ‎03-24-2019

@marnotom! wrote:
@sylviebee wrote:.
No, this buyer knew what was going on. I was curious so asked her about it and she told me that it's been going on for the past year and the tax is the main reason she cancelled.
This almost-buyer sounds a bit flaky and you may have dodged a bullet in not having to sell to her.

No. She's actually very typical and cancelling was predictable. When I saw the added tax I expected the cancellation, and sure nuff................ that's exactly what happened.

American buyers are reacting to this tax exactly the way Canadians react to the GSP............. the tis by avoiding purchases with the added tax and if you get nailed once: Do everything they can to avoid to getting nailed a second time.

marnotom! · ‎03-24-2019

@sylviebee wrote:
No. She's actually very typical and cancelling was predictable. When I saw the added tax I expected the cancellation, and sure nuff................ that's exactly what happened.

American buyers are reacting to this tax exactly the way Canadians react to the GSP............. the tis by avoiding purchases with the added tax and if you get nailed once: Do everything they can to avoid to getting nailed a second time.

Which brings to mind that saying about insanity being defined as doing the same thing repeatedly and expecting different results, although in fairness I don't know how many eBay purchases she's made recently. How extensive is her recent feedback as a buyer?

The long and short of it, though, is that this almost-buyer would be much further ahead trying to educate themselves on why and how this sales tax is being applied.

sylviebee · ‎03-24-2019

@marnotom! wrote:
@sylviebee wrote:
No. She's actually very typical and cancelling was predictable. When I saw the added tax I expected the cancellation, and sure nuff................ that's exactly what happened.

American buyers are reacting to this tax exactly the way Canadians react to the GSP............. the tis by avoiding purchases with the added tax and if you get nailed once: Do everything they can to avoid to getting nailed a second time.

The long and short of it, though, is that this almost-buyer would be much further ahead trying to educate themselves on why and how this sales tax is being applied.

Why does this suddenly feel like an argument or debate?

She knows what the added charge is about. Even she didn't, it would never occur to me tell her to educate herself.