NEW FORCED TAX FOR USA BUYERS - what do you the seller or buyer think of this?

[of-the-world]

I told myself 20 years ago when I started on Ebay that if the platform

starts forcing TAX on USED OLD ITEMS - that were already taxed once in a

commercial environment... I would leave the platform.

So it appears Ebay is making a prophecy unfold.  

This is my personal ethics and I see this as another huge dig into peoples pockets

under a notion that should be criminal. 

I'm only talking about items outside the normal Tax structure of new items.

It personally makes me sick, especially in a time of a massive down swing in economy.

Are they trying to force people off the platform by design? 
 I sell niche items, so I don't rely on Ebay any longer for the past 5 years. I just dabble in selling

on Ebay when the monthly promotions show up. 

Again, I understand charging tax on brand new unopened items that were never sold

before. I'm speaking of selling used vintage products that normally would not

be in the category of being taxed.  Case in point, the last 20 years of sales which

have all been vintage items at least 20 years old. 

[marnotom!]

Americans in 40-odd states have been subject to these taxes for years now.  They're called "use taxes" and they apply to anything purchased from out of state that would be subject to sales taxes if bought within the state of the buyer's residence.

The quirk with "use taxes" is that the methods to collect them are weak and up to the purchaser's ethics and knowledge.  Many states have buyers declare the purchases on and pay the taxes with their income tax.

It's been only since a big court ruling that the states now have more legal teeth to collect these taxes, and for online sales it's up to the website to charge and remit those taxes.

[femmefan1946]

What makes you think used products are not taxed?

I do most of my procurement at thrift stores, not only used goods but charities, and they charge GST and PST.

I sold a used, cut sewing pattern  published circa 1965, this week that I paid sales tax on when I bought it.

If you have ever purchased a used car, you paid sales taxes on it. If you ever had your teeth cleaned at the dentist, you paid tax on the service.

I've been selling retail and mail order , everything from cast iron wood stoves to rare postage stamps, since the mid-70s and charging applicable PST, then GST, then HST on the sales. Both on used and new items.

Errr? What downswing in the economy?  There was the "Bush Recession" a decade ago, which mostly missed Canada, and which was stopped by US and Canadian government interventions.

Paid for by taxes.

EBay is collecting the taxes from buyers in the affected states. We sellers have nothing to do with it.

And the same stricture applies to any selling venue, eBay, etsy, AZ, ZoS, PoshMark, LL Bean, Nystrom, Wish, etc. 

But you do you.

[cumos55]

Taxation was always there for people that lived in the US.

Many US states have these taxes

It is only recently that these taxes have been applied to online sales.

US Buyers will eventually adjust to this tax reality for online sales.

[lotzofuniquegoodies]

Sadly not fair, but just how it is. Similar to saying anyone having a certain number of yardsales is now a business and must collect and pay taxes.

https://www.investopedia.com/terms/u/use-tax.asp

-Lotz

[femmefan1946]

Back in Ottawa there was a family who had a permanent garage sale on Somerset Street - a poor neighbourhood with mixed residential/commercial use.

The city was constantly fining them, because they were obviously running a business without a permit and causing traffic tie-ups (no easy parking), using more utilities, using city garbage pickup when businesses were not covered, and frankly the yard was a haven for rats and roaches. To say nothing of neither collecting nor remitting sales taxes.

[mrdutch1001]

Yes, exactly, some cities here have a restriction of 3 garage/yard sales per year but of course that is so badly abused by those who seem to have weekly garage/yard sales...

[lotzofuniquegoodies]

Unfortunately a few that may over the limit could be either trying to pay the rent or keep the lights on. How long before they figure out a way to tax someone collecting bottles to buy food? Personally, I've always believed the barter system rocked!!! Shhhh...Don't tell the gov!!! 🙂

-Lotz

[unique-attic-treasures]

Personally I get where the OP is coming from

I've always said used items should be free of taxation as they have already had there taxes collected from them when they where originally purchased..

I worked automotive parts for decades and at a car dealership for a number of years...the government can collect on a single vehicle as many times as it is resold....it shouldn't be that way...you take a 60thousand dollar truck...collect taxes on that..why do they get to collect again in say 5 years when a person trades in and then its resold...its despicable really

Don't get me wrong I'm not against taxation....I'm against the waist that is going on...taxes pay for our health care..our roads..everything we enjoy as a society

I've said so many times I can't count that what we need is more accountability in our Government...it's not "Government Money" its our money the government is wasting(anyways another rant for another time lol)

Sorry I got off topic lol

SO...in summery...Taxing already taxed items is BAD lol

[dealbest2014]

as i know for quebec and canada their is No sales tax on used items + + + on REVENU QUEBEC SITES they specify as follow (

Details Concerning Small Suppliers

You are considered a small supplier if the total taxable supplies (including zero-rated supplies) made worldwide by you and your associates in the course of a given calendar quarter or in the four preceding calendar quarters do not exceed $30,000. Total taxable sales do not include amounts from GST and QST, financial services, sales of capital property or the goodwill of a business.

As a small supplier, you are not required to register for or collect the GST and the QST.

In calculating your taxable supplies, you must include any zero-rated supplies made by you and your associates. )

see on their site

so ebay i think they cannot charge tax tps tvq for it

.....

[dealbest2014]

as i know for quebec and canada their is No sales tax on used items + + + on REVENU QUEBEC SITES they specify as follow (

Details Concerning Small Suppliers

You are considered a small supplier if the total taxable supplies (including zero-rated supplies) made worldwide by you and your associates in the course of a given calendar quarter or in the four preceding  calendar quarters do not exceed $30,000. Total taxable sales do not include amounts from GST and QST, financial services, sales of capital property or the goodwill of a business.

As a small supplier, you are not required to register for or collect the GST and the QST.

In calculating your taxable supplies, you must include any zero-rated supplies made by you and your associates. )

see on their site

so ebay i think they cannot charge tax tps tvq for it

.....

[recped]

---

@dealbest2014 wrote:

as i know for quebec and canada their is No sales tax on used items + + + on REVENU QUEBEC SITES they specify as follow (

Details Concerning Small Suppliers

You are considered a small supplier if the total taxable supplies (including zero-rated supplies) made worldwide by you and your associates in the course of a given calendar quarter or in the four preceding  calendar quarters do not exceed $30,000. Total taxable sales do not include amounts from GST and QST, financial services, sales of capital property or the goodwill of a business.

As a small supplier, you are not required to register for or collect the GST and the QST.

In calculating your taxable supplies, you must include any zero-rated supplies made by you and your associates. )

see on their site

so ebay i think they cannot charge tax tps tvq for it

.....

---

I have no idea where you got the notion that used goods are not taxable in Canada because it's simply NOT true.

As far as eBay charging buyers TPS/TVQ.......they DON'T! eBay is not collecting ANY taxes (GST/HST/TVP/PST) on sales to buyers. Individual sellers may (I do) but not eBay.

[femmefan1946]

@dealbest2014

The only part of  that which says anything about  used goods is  "taxable sales do not include amounts... sales of capital property..." which is stuff you have owned that was purchased for your own use (and may or may not have been used that way).  In other words, stuff you might otherwise be selling in a garage sale.

If you bought it for resale, it is taxable on resale.

The $30K is based on the efficiency of the government. "The law does not concern itself with trifles." and earnings/profits under $30K will from the point of view of the ON and QC revenue, not generate enough tax revenue to cover the costs of collection.

As for used items not being charged tax, I buy much of my stock in thrift stores, and I can assure you that they do indeed charge for used goods, as do used car dealers and stamp dealers, to name two other businesses commonly selling "pre-owned" goods.

This is from a recent restocking trip.

[katlover1952]

I agree that there should not be tax on used items but not much we can do about so just have to  pay it. I think with the popularity of on-line sales the states have become aware of all the revenue they were missing and enacted laws to make sure they get it. Consumers just have to suck it up.

[lotzofuniquegoodies]

@cumos55 

One person's recent "awesome" experience with a refund for the online tax. If this is to be implemented Nov 1 there should be clarification/procedures in place by now.

https://community.ebay.com/t5/Member-To-Member-Support/Refunds-for-eBay-Taxes/qaq-p/30323750/jump-to...

-Lotz