I am sure this has been discussed before, but last night I found myself winning an auction on ebay for around $2k and it really hit me...

It was from a private seller in California (I am in New York).

When I went to pay, there was a line item for sales tax!

I checked with the seller and he did not add it.

eBay is now automatically adding in sales tax to all sales in a bunch of states (As of 6/1/19 for New York).
https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

This really changes everything as we now have to factor in sales tax when making regular purchases on the bay!

 

"Prior to the effective date, you should continue to collect and remit tax in these states if required. Additional states will be added to this list at a later date.

Once eBay starts to collect tax in the above states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting and remitting sales tax. The collection process will apply to all sales, whether the seller is located in or outside of the United States.

When a buyer purchases an item on eBay, and the ship to address is one of the above states, eBay will calculate and add the applicable sales tax at checkout. The buyer will pay both the cost of the item along with the sales tax. eBay will collect and remit the tax.

Sellers are not able to opt out of selling items into the states listed above or opt out of eBay automatically collecting sales tax."

 

there were only two things certain in life, now we are dealing with three...

 

This went into effect on 1/1 for WA state. I’d say it’s decreased my watch spending, but it hasn’t. It does steer me towards offline sales though.

 

I noticed this a couple of months ago (taxes charged on out-of-state purchases on eBay). I thought sellers were doing it to pad their revenue. I can believe it's an automatic feature in eBay now, but the tax money does go to the seller, right?

 

I fail to understand how states can collect sales tax on used goods. Unless the seller has a tax ID where they can show they didn't pay sales tax to begin with, and thus it should be collected on the item at sale for a NEW item, than collecting sales tax on used items is utter BS. I realize that the laws may differ from this opinion - but it doesn't stop if from being double dipping.

 

Tax money collected by eBay goes directly to the state.

 

Does WA charge sales tax on a private sale on a vintage watch from the EU?

 

According to eBay:
When a buyer purchases an item on eBay, and the ship to address is one of the above states, eBay will calculate and add the applicable sales tax at checkout. The buyer will pay both the cost of the item along with the sales tax. eBay will collect and remit the tax.

 

I noticed this on Etsy a few months ago. Both the purchaser and I questioned it.

It seems all the US states have, or are in the process of, introduced sales tax on out of state purchases. This includes purchases made outside the US. Rates vary slightly but all the major sales platforms have introduced similar schemes for it: they add the tax to the sellers invoice and then collect that tax prior to passing on the purchase price (less other costs) to the seller. The taxes are then redeemed to the appropriate tax office.

If you're going to complain to anyone, it needs to be your state representative.

The tax applies to everything - new, used, vintage, antique ...

 

It’s due to the SCOTUS ruling last year against Wayfair. It’s States under lobbyists from Walmart changing laws.

The seller never see the sales tax.

 

How does this affect Private Sales transacted on this Forum?

 

In theory, the seller should be responsible for collecting and submitting appropriate tax. Each state has their own set of rules.

 

That’s right - doesn’t matter where the seller is.

 

South Dakota vs. Wayfair Supreme Court decision upended the long term law that said if you didn't have a physical presence in a state you didn't have to collect sales tax. States are grubbing for all the taxes they can get, and the large retailers are more easily able to collect the use tax, the smaller retailers not so much which is fine for the big guys, it thins the competition.

The Effects of Wayfair
On June 21, 2018, the U.S. Supreme Court ruled in favor of the state in South Dakota v. Wayfair, a case in which South Dakota sought to have a statute imposing economic nexus standards on remote sellers upheld by the Court. In its decision, the Court concluded that the physical presence standard that had existed for decades for sales and use tax nexus was “unsound and incorrect.” The Court overruled its prior decisions in National Bellas Hess and Quill, thus opening the door for states to require remote sellers to collect and remit sales and use taxes.

 

I hate South Dakota. To quote John Oliver, "why are there two Dakotas?"

 

Regardless if Ebay collects sales tax or not, its always been your obligation to self report and pay it. The states aren't "grubbing" for all the taxes they can get, they are finally collecting what is due.

 

I agree - if the seller paid taxes on the item and is selling it used, why does someone get to collect taxes again?

 

Two comments:-
1.For us Brits, the addition of UK Customs/Duty on import killed any perceived financial incentive to buy pre-owned watches from the USA years ago. Get over it.
2. Having just enjoyed an amazing 3-week visit to the USA and, on returning to GB, then to be told that I could have reclaimed all local taxes before flying home. Get over it.

Taxes: you can try to avoid them but the opportunities to evade them are becoming ever fewer.