eBay

lotzofuniquegoodies · ‎10-16-2022

Has anyone recently noticed strange inconsistencies to the US state tax being collected? Is anyone able to confirm if tax on Sale or Sale + Shipping? Can US buyers be tax exempt?(No tax showing)

Recent examples:

1. Maryland (State Sales Tax 6%)

Sale 5.25 + Shipping 16.86 + tax .32 = 22.43 Correct Based on sale only

2. California (State Sales Tax 9.0 % +-)

Sale 25.00 + 24.20 + 2.38 = 51.78 Correct Based on sale only

3. SC (State Sales Tax 6.0%)

Sale 75.00 + 50.41 + 0.00 = 125.41 ???

4. NC (State Sales Tax 4.75%)

Sale 16.50 + 12.77 + 2.05 = 31.32 ??? Based on Sale + Shipping

5. AK (State Sales Tax 0%) Packing slip showed 0.00 Tax collected.

Sale 6.85 + 11.17 + 0.00 = 18.02 Correct Based on Sale Only

6. CT ( State Sales Tax 6.35%)

Sale 15.00 + 13.19 + 1.79 = 28.19 ??? Based on Sale + Shipping

The only place actual rate shows up is on original invoice to buyer. No place that is accessible(visible to seller).

-Lotz

FWIW there are also inconsistencies lately with:

1. The shipping options shown between eBay labels and Shippo. Up until 6 weeks ago they matched exactly. Now some services are higher..others lower when compared directly.

ricarmic · ‎10-16-2022

I may be incorrect but as far as I know even within a state there might be different tax rates, I seem to recall it became important for buyers to include the last 4 digits of their zip code because that helped identify their actual tax rate.

For sure in some states "resellers" do not pay taxes. I have one in NY that I see never pays taxes.

pjcdn2005 · ‎10-16-2022

You're correct as some municipalties in the US have an extra tax added on to the state tax.

US resellers can fill out a form on ebay so that when they purchase an item for their business, they don't have to pay tax.

lotzofuniquegoodies · ‎10-16-2022

@pjcdn2005 wrote:
You're correct as some municipalties in the US have an extra tax added on to the state tax.
US resellers can fill out a form on ebay so that when they purchase an item for their business, they don't have to pay tax.

I realize there are different rates based on zip code. Is it documented anywhere regarding exemption and should it be applied to shipping for lack of a better word, willy nilly? In other words, eBay show the math/exemption.

-Lotz

flipistics · ‎10-16-2022

Some states apparently do not charge tax on shipping while others do.

https://www.taxjar.com/sales-tax/sales-tax-and-shipping

I believe some states still do not charge tax on internet sales, only physical ones.

lotzofuniquegoodies · ‎10-16-2022

@lotzofuniquegoodies wrote:
@pjcdn2005 wrote:
You're correct as some municipalties in the US have an extra tax added on to the state tax.
US resellers can fill out a form on ebay so that when they purchase an item for their business, they don't have to pay tax.
I realize there are different rates based on zip code. Is it documented anywhere regarding exemption and should it be applied to shipping for lack of a better word, willy nilly? In other words, eBay show the math/exemption.
-Lotz

Thanks. Looks like it gets a bit messy if the shipping is included as part of the price. In follow up with the customer (SC) on the 0.00 charge for taxes, customer is a reseller so charges tax when item sells.

-Lotz

femmefan1946 · ‎10-17-2022

Some states have no state tax. Canadian equivalent being Alberta.

Some states do charge tax on shipping. As I recall Ontario does.

Some state do not charge on certain products. BC does not tax children's shoes.

And some states also have county sales taxes, city sales taxes, etc - New York City has a municipal sales tax.

Up until 6 weeks ago they matched exactly. Now some services are higher..others lower when compared directly.

Perhaps eBay has tweaked their program (always a terrifying thought) to be more accurate?

In other words, eBay show the math/exemption.

The tax woud be shown to the payer -- the customer-- not to you since tax only passes through our invoices as a convenience to the buyer and to eBay.

Although we do pay the eBay fees on the entire payment processed, but that's another story and also Standard Business Practice.

lotzofuniquegoodies · ‎10-17-2022

@femmefan1946 wrote:
Some states have no state tax. Canadian equivalent being Alberta.
Some states do charge tax on shipping. As I recall Ontario does.
Some state do not charge on certain products. BC does not tax children's shoes.
And some states also have county sales taxes, city sales taxes, etc - New York City has a municipal sales tax.
Up until 6 weeks ago they matched exactly. Now some services are higher..others lower when compared directly.
Perhaps eBay has tweaked their program (always a terrifying thought) to be more accurate?
In other words, eBay show the math/exemption.
The tax woud be shown to the payer -- the customer-- not to you since tax only passes through our invoices as a convenience to the buyer and to eBay.
Although we do pay the eBay fees on the entire payment processed, but that's another story and also Standard Business Practice.

@femmefan1946

eBay has tweaked the payment fees screen so many times since it was all implemented. From past experience they've always done what works best/easiest for them and not what buyers or sellers require. If I was a business buying from a seller I would want anything involving charges to be displayed properly. You go to a B & M store, you get a detailed receipt. Because it keeps going back and forth regarding its based on the transaction..it's based on the item...it's based on the category no one knows for sure what any of this is based on. It took clarification from the buyer to confirm what was actually going on. Like trying to get a straight answer about what to do if someone is charged improperly for tax. There is zippo in help on the subject.

-Lotz

femmefan1946 · ‎10-17-2022

Yes your B&M receipt will show the selling price and the tax, and then the total you paid. Then when you pay your credit card bill, you only see the total.

The merchant sees the total you paid when he gets his bill, and the card charges his fee based on the total.

He has, separately, the original cash register receipt which shows the selling price and the tax.

With eBay , you and your customer both see the selling price, the shipping cost, and the sales tax. The customer pays the total.

When you look at your eBay/MP fee payment you see only the total, not the breakdown. Remember the seller is not paying the tax, he is paying fees based on the buyer's total payment.

But.

Just as the shopkeeper sees all the charges broken down on his copy of the customer's receipt, the eBay seller sees the same information there on his copy (Orders-> Choose item-> Payment Details. ) of the payment. I print those out because I am old and set in my ways, and I make other notes on the paper copy.

I think part of the problem is that most eBay sellers have never held a merchant credit card account nor run a B&M business, so they don't know what normal businesses do once they as customers deal with.

That the Standard Practice is for the processor to ignore what made up the total and just charge fees on the total makes them very confused.