w~~_7.JPG "pjcdn2005"){kind=avatar}
@clemowbooks wrote:Why would the Texas sales tax on the Japanese buyer's eBay purchase be paid by the forwarder?
1.Because they are a registered business in Texas.
What the forwarder does with the items they process is not the state's concern.
2. Not to sound snarky, but have you ever run a retail B&M business as an owner or manager?
3. When imported items go through foreign countries' customs, that is where they get assessed for their own country's duties and taxes.
- The raw materials were taxed when they were sold at the mineface.
- Then they were taxed when they were processed into a product (VAT- value added tax).
- Then they were taxed when the manufacturer sold them to the wholesaler.
- And again when the wholesaler sold them to the retailer. ?????????????????
- And when the retailer sold them to the consumer.
- Then if the consumer was overseas, that nation charged duty and tax on the import.
- If the foreign consumer is a reseller, the item is taxed when he sells it to his customer.
Now, before you get all upset about that, at many of those points, the taxpayer can deduct the payment as an expense on his own taxes.
Canadian taxpayers have a deduction for federal and provincial taxes on our annual returns, for that matter.
The only problem with the Internet Sales Tax is that eBay is not paying the Paypal fees for money they are passing through our PP accounts.
1. I didn't realize that a"freight forwarder" was in the business of paying state tax on other people's purchases. I thought they were a shipping company. 
2.Yes, our family has many years of experience in the retail business and in the hospitality business.
2. We were in the retail business for many years but because we had a registered sales tax exemption number we never had to pay tax on the wholesale merchandise we ordered from our warehouse for retail sales. Even when we went to trade shows and went to various wholesale warehouses to pick up inventory in person for our retail business we never paid any sales tax for our inventory. We purchased inventory under our legal tax exemption number and we never paid any sales tax on our inventory. We collected the sales taxes (pst & gst) from the end user and remitted it to the appropriate government.
I don`t know where you got your taxation rules from but here's the rules that apply in our province:
Taxes and Reporting
When you sell wholesale you do not charge sales tax on the order (the retailer will tax the customer for each item at time of purchase and that will be paid as sales tax on that item.)PST and inventory-
http://kbaccountingservices.com/blog/Saskatchewan+Provincial+Sales+Tax+PST/6
Any purchases that are intended for resale, such as inventory, are PST exempt. Your PST number will be required by the supplier to verify the tax-exempt status.
Inventory items for resale, which will be taxed, are not applicable. These will ultimately be taxed when the end user purchases the items.
The rule of thumb, PST is charged once.
Some more information:
https://www.thebalancesmb.com/how-to-charge-and-remit-pst-in-saskatchewan-2948449
@pjcdn2005 wrote:The forwarder wouldn’t charge the buyer state tax for their eBay purchase...they aren’t selling the item, they are simply shipping it.
I concur. They are like an independent Post Office that handles overseas bulk shipping.
Thanks @pjcdn2005 for this straight forward clarification.
Freight forwarders play a vital role in the movement of goods from one place to another. ... While the movement of goods for individual customers is usually managed by postal and courier services, 'freight forwarding' commonly refers to the bulk movement of goods, also referred to as cargo or freight.
Fedex, UPS, and DHL are all examples of a "freight forwarder".
How did we get sidetracked into this discussion??? 
This isn't even the topic!!
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