usa sales tax ???????????????

eBay needs to inform potential buyers that they are going to have to pay sales tax, on top of their order price prior to them using buy it now or best offer, because i am seeing a lot of people not wishing to pay when they see the tax added to their invoice after they have purchased something..

 

And for eBay to assume that people in the state's that are collecting taxes now should already know this is totally hind-sighted..  Because they don't know this because it is all new to them as well as us..

 

When  i have a customer ask if there is any other taxes or customs fees attached to this order how am i supposed to know this in advance??  especially when some buyers ebay address doesn't match their ship to address in paypal... 

 

And to say buyers will see it in their cart is too late.. any person who is living in a state that ebay is now collecting tax for, should have a pop up window informing them, that no matter where they purchase their items from they will have to pay their state tax..

 

Ebay is once again alienating the buyers from their sellers  ..

 

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usa sales tax ???????????????

This is potentially a bigger problem for all of us (ebay and us).

I am not 100% sure, but as I understand it, it is only the larger players like ebay, amazon that have to collect these taxes.

Customers will either realize they're stuck paying the taxes, and continue on, or they will search out other "smaller" online sites that do not have to collect the taxes.

That is what worries me, I suspect it also worries eBay.

Message 2 of 21
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usa sales tax ???????????????

States have taxes for the purchase of an item within a state.

 

In contrast .....This is an .... internet.... tax....  applied to the purchase of items by someone that lives in that state.

 

The world is moving ... very quickly....to internet sales... where no taxes were applied....

 

Now in some states the tax is applied to an online ... internet ..purchase

 

eBay collects the tax and then remits the collected tax to the state.  

 

-----------------------------

 

We in Canada have ... PST... GST... and HST.

 

We live with these taxes....As sellers on eBay we follow the Canada Revenue Agency rules.

-----------------------------------------

US Buyers must adjust to the new reality... because... all US States will eventually have this same tax.

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usa sales tax ???????????????


@esclyons wrote:

When  i have a customer ask if there is any other taxes or customs fees attached to this order how am i supposed to know this in advance??  especially when some buyers ebay address doesn't match their ship to address in paypal... 


If asked just direct them to the list (currently 14 States):

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

 

The Buyer knows what state they want to ship it to -- not your responsibility as a Seller to spoon feed them.

 

-..-

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usa sales tax ???????????????

Short of sending every member (buyer or seller) whose membership shows them living in one of the 14 (about to be 21) states an email the day the tax will start to be applied, I'm not sure what eBay could do.

And if eBay did it alone, what are the chances it would be dubbed "the eBay tax" and lose buyers, who will then go to Amazon and pay the tax without noticing it.

 

Basic point:  Buyers don't read.

 

@cumos55 

.As sellers on eBay we follow the Canada Revenue Agency rules.

 

But only sellers registered to collect and remit Canadian sales taxes do so on eBay at the moment.

And most mention it in their Terms of Sale.

Unless Revenue Canada decides it is worthwhile to make the same requirement of eBay (et al) -- let's just not give them any ideas.

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usa sales tax ???????????????

I'm Canadian, but when I buy on ebay, I usually pick up packages in WA state, since I live by the border. I typically do this because it's cheaper (even with my $4 package pick up fee), but after my surprise of getting charged nearly 10% extra for everything I buy, I need to do the math more carefully in the future, compare to buying it from a Canadian, or look to other online stores that don't charge the tax.

Unfortunately, in most cases I can only find what I'm looking for from US sellers on ebay that don't ship to Canada (or charge $20-$30 shipping). So I have to take the extra 10% up the tailpipe...

As a seller, I haven't had any complaints from buyers that live in the taxable states. ...but I'm convinced that there's some that are left with a bad taste in their mouth after discovering they have to pay more for my item. Thankfully no one has taken it out on me...yet. I suspect that as soon as more states are added to that list, there's more chances of an unhappy buyer.

I'm curious if any sellers have been negged for these taxes getting added on?!
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usa sales tax ???????????????

Would it be worthwhile to have a small printed note for US buyers to tuck into packages, explaining the "new" tax and saying that they can expect to pay their state tax on all online purchases from now on including purchases from Amazon, etsy, eBay, and WalMart?

 

But then: Buyers Don't Read.

Message 7 of 21
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usa sales tax ???????????????

Taxes are shown at the cart level and in the payment process, not really different from the market leader who has been collecting taxes for a long time now. The shipping and payments tab indicates taxes may apply, that could be reworked to show the exact tax rate since the zip code information is populated at login. In general with ecommerce design you don't want to do heavily invasive things like popups as to stop a few complaints you are going to put off far more buyers. You don't draw attention to and market a negative. 

 

The vast majority of my sales are to the US including quite a few of the markets where tax collection is in place, haven't had a single comment from a US customer on the subject since this began. I don't think we are fighting against a lack of knowledge here, just an outdated ideology where some people think that shopping online should magically mean you are exempt from taxes. Those people will moan about the subject even when they are fully aware of the situation and are likely fishing for a discount. If someone moans about taxes I don't view them as a serious customer.

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usa sales tax ???????????????


@teenytrinkets wrote:
I'm Canadian, but when I buy on ebay, I usually pick up packages in WA state, since I live by the border. I typically do this because it's cheaper (even with my $4 package pick up fee),

If you receive a fair amount of packages you can save yourself a bundle of money by getting a USPS street addressing program post office box. Around $60 USD a year and anything short of a vehicle or mobile home you can send to one, with any carrier you want. 

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usa sales tax ???????????????

PO Boxes are a PITA. Not only do a lot of merchants not ship to them, some carriers won't deliver to them. Then what happens if the package is too bulky? Pick up at the post office (another PITA)? Or return to sender? Everyone I know picks up and pays per package because a PO Box just isn't a practical solution...
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usa sales tax ???????????????

Some foolish sellers believe that Post Office boxes are unsafe when  the truth is actually the opposite. 

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usa sales tax ???????????????

@hlmacdon 

not really different from the market leader who has been collecting taxes for a long time now.

 

Maybe the real problem is that eBay customers DO read and notice this, while AZ customers just accept.

 

@teenytrinkets 

Not only do a lot of merchants not ship to them,

Out of boredom at one point I actually Google Mapped the addresses of my customers.

You would be amazed at how often "Unit 202" was not an apartment but "PO Box 202".

 

some carriers won't deliver to them.

I gather this is less of a problem than it was a decade ago, but if you are using a PO box  it would make sense to avoid sellers who use couriers.

 

 

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usa sales tax ???????????????

Sellers aren't being foolish...I think everyone recognizes PO Boxes are safer (they're locked, after all) - they're just not a reliable and practical solution for packages.
Message 13 of 21
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usa sales tax ???????????????

It's more that they're not an option for packages sent by means other than mail, e.g. UPS.

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usa sales tax ???????????????


@teenytrinkets wrote:
PO Boxes are a PITA. Not only do a lot of merchants not ship to them, some carriers won't deliver to them. Then what happens if the package is too bulky? Pick up at the post office (another PITA)? Or return to sender? Everyone I know picks up and pays per package because a PO Box just isn't a practical solution...

That is the point of a street addressing program PO Box. The address is not formulated as a PO Box, makes no reference to the address being a PO BOX, hence any carrier will deliver to the address. This is literally the exact same model used by every shipping receiving place. The reason why carriers won't deliver to a traditional PO Box is the address format omits the actual street address since USPS PO Box coding links the extended ZIP directly to the physical address instead of listing the physical address. 

 

Define too bulky? Are you referring to a vehicle, a boat, or a trailer? I've had very large packages delivered with no issue, other than that they prefer you pickup the package in a reasonable amount of time. I frequently see customers picking up their giant 60+ inch TVs from the post office. If you have something extremely large (ie that would fill the entire back of a cargo truck), or would require say a forklift to ferry about, then a shipping receiving service makes sense, but otherwise you are just wasting money assuming you ship regularly enough. Post Offices all have storage space, it doesn't matter if the item can be crammed into the actual physical PO Box, it just goes in the back and you pick it up. If the item can fit in a truck or a cargo van you are good to go.

 

I've probably ordered from something on the order of a few hundred merchants and haven't had an issue. Any of my commercial shipments under the $800 limit go directly to the US or from within the US via pretty much every major carrier as that cuts my incoming shipping costs dramatically and expedites customs releases since it is a quick pop into the CBSA office at the border to pay the GST and I don't have to worry about the physical mail backlogs nor do I have go through the extremely annoying process of claiming PST refunds for commercial goods because the shipment gets brokered improperly or a CBSA agent can't be bothered to read an invoice and see a shipment is of a commercial nature.

 

The service is regularly used by people in the US that suffer from porch piracy. There is a reason why the package receiving places are continually trying to lobby the government to get rid of the service, which they have no intention of doing. Times have changed guys. If you aren't leveraging this you are missing out.

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usa sales tax ???????????????


@reallynicestamps wrote:

@hlmacdon 

not really different from the market leader who has been collecting taxes for a long time now.

 

Maybe the real problem is that eBay customers DO read and notice this, while AZ customers just accept.

If that was the case I would have expected at least one customer to raise a concern about it, none have. My sales to particular states that were early implementers of the tax have been higher post tax implementation than prior to it. Anyone who built a business model that depended on playing the nexus/tax avoidance game may very well have an issue. Those sort of arbitrage models usually fail spectacularly. AZ customers were very vocal about it when FBA tax implementation phased in but as usual life went on shortly after and they continued to rack up massive YOY growth.

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usa sales tax ???????????????

ve4mm
Community Member

I live in Winnipeg and pick up items in North Dakota.

 

I am charged 13% tax at the border.

 

I am not paying North Dakota sales taxes from eBay so I quite buying now.

 

I refuse to be double taxed.

 

I do NOT live in ND. I just have stuff sent there.

Message 17 of 21
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usa sales tax ???????????????

It won't matter whether you are purchasing items from eBay or some other large USA based online outlet, that internet sales tax will be applied if items are being sent to your USA address. This is not an eBay thing...this is the USA States' Gov't implemented tax that applies to all these large USA based online marketplaces.

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usa sales tax ???????????????

The tax at the border is Canadian duty and sales taxes.

If your trip is over 48 hours you can import up to $200 without duty, but you do have to pay GST/PST/HST.

 

Just as North Dakota runs its infrastructure and services on the sales taxes (etc) that it collects, so does Canada and Manitoba.

 

Easy fix would be to buy from US sellers who use the GST (spit spit spit) to ship to Canada.  No Kentucky sales tax is charged as your purchase passes through  the plant, and you are only charged Canadian import fees on  items valued over $20Cdn.*

 

In the short run, since these taxes are being charged by ALL online "marketplace facilitators" including Amazon and LL Bean and Target etc, the answer would be to have low value (under $100) items shipped to your Canadian address and bulky and/or more expensive items via GSP or to your ND mailbox.

 

But.... death and taxes, eh?

 

 

 

* If Parliament ever passes the new NAFTA this will change to $150 duty free  and $60 tax free.

Message 19 of 21
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usa sales tax ???????????????

@ve4mm, if I’m reading this document correctly, North Dakota does not exempt Canadian buyers from paying state sales taxes on online purchases:

https://www.nd.gov/tax/data/upfiles/media/canadian-refund-information-22006_1.pdf?20200223213250
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