What happens when/if ebay does not collect the tax

[Anonymous]

Okay....

Sold a item, and now have a question that involves ebay new policy to collect taxes on sales .

Sent invoice for used camera buyer paid BUT there is no tax been collected. 

Any one have an idea of who is responsible for the sales tax, if ebay does not bill or collect it from the buyer on the sellers behalf? 

 ideas?

[marnotom!]

Where is the buyer's shipping address located?

[Anonymous]

the USA. 

[pjcdn2005]

There are some states that do not require ebay to collect tax.

[lotzofuniquegoodies]

@Anonymous 

Internet Sales Tax Provisions by State

Forty-five states and the District of Columbia have internet sales tax. The following states do not have an Internet sales tax: Alaska, Delaware, New Hampshire, Montana, and Oregon. Below are each state's enacted Internet sales tax provisions.

Which states have no sales tax eBay?

Sales tax is based on the Buyer's state so NH Buyers should NOT be charged online sales tax from what I've read ... they still appear on the list of 5 states that have no sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. eBay collects and remits to the various states.

-Lotz

[Anonymous]

If thats the case ebay farked up  as item is going to  Michigan 48xxx. 

So using your information sales tax should have been collected and was not ,who pays now? 

Will ebay go after the buyer to collect the sales tax or just take it from the seller. 

[ricarmic]

There's no need to worry, this has been happening for a long time with the IST, (since it started I've had buyers get charged for one item and not another).

Nobody has ever come back to me....and of course no extra charges.

As a note, I think some states have rules that folks that are reselling can be exempted or something, but I don't know that for sure.

[marnotom!]

I really don't see why the seller should be seen as responsible in a situation like this when it's the venue charging the tax, not the seller.

[femmefan1946]

It is eBay's responsibility to assess, collect  and remit sales taxes.

The tax is posted on the seller's invoice as a convenient way to inform the buyer and collect the tax.

The seller is not involved.

EBay/Managed Payments* charges their fees on the ENTIRE customer payment which includes the sale tax, but the tax itself is not the seller's responsibility.

Also.

And it is unlikely.

The customer may have an exemption, like Canadian exemptions for diplomats and status Indians living on reserve.

*And previously Paypal.

[ilikehockeyjerseys]

You're a Canadian citizen. 

You are not involved at all in the collection of taxes for other countries. Your only responsibility is to declare the information that customs required you to declare (value, purpose of shipment being sale of merchandise, etc). 

The only possible issue I can think of would be customs assessing the import and charging taxes to the customer. I don't know how common this is. If you send with Canada Post or another service that uses USPS, I assume this won't happen. I don't think I have ever had a customer tell me they were charged customs fees.

The tl;dr is properly declare the item on the customs form and include an invoice (a receipt) inside the box, and you have nothing to worry about. Uncle Sam isn't going to go after you. 

(P.S. I am not an accountant or lawyer. This is just based on my personal experience selling and is not accounting or legal advice, etc, etc. Go to real accountants or lawyers for that...)

[femmefan1946]

I don't think I have ever had a customer tell me they were charged customs fees.

Considering most of our "international" customers are in the USA, which has a duty-free allowance of $800US, and no federal sales taxes, most customers wouldn't be paying anything for imports.

European and Australian customers have lower duty-free allowances, but are also more sanguine about paying tax and duty.

Exception would be the, mostly German, scam of claiming non-delivery, then picking up the shipment and paying import fees, after the seller has refunded.

[pjcdn2005]

You're right. American sellers can send some sort of form to eBay so that they aren't charged tax when they are purchasing for their business.   I have no idea if that's what happened in this case but just wanted to confirm what you said.