PayPal charging sales tax on ebay sales?

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Just experienced this bit of... joy as well. Will certainly make me think twice about future eBay purchases.
 
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PayPal are thieves, and the biggest thing to me is they've made it perfectly clear where they stand in their non support of the 2nd Amendment too! I quit using them years ago. Venmo is the way to go now, 100% free if you have the money directly deposited into your checking account.
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Title should be changed, this is an eBay issue, not PayPal.
 
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Title should be changed, this is an eBay issue, not PayPal.
Actually it is a state tax policy issue, eBay and PayPal are just acting as agents for the state in collecting legal taxes . Don't blame them. They would prefer not to have to deal with this issue, but they have little choice if they want to do business in these states.
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Actually it is a state tax policy issue, eBay and PayPal are just acting as agents for the state in collecting legal taxes . Don't blame them. They would prefer not to have to deal with this issue, but they have little choice if they want to do business and service these states.

Fair enough, thanks for the clarity. Title should be changed to address that.
 
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PayPal are thieves, and the biggest thing to me is they've made it perfectly clear where they stand in their non support of the 2nd Amendment too!
Not sure what relevance this has to the discussion, but please call me when you join your state's National Guard.
gatorcpa
 
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It seems that ebay is only charging this use tax to American based buyers buying from abroad.

I sold and item and bought an item here in Canada and ebay didn't charge either of us sales tax.

I sold an item to a UK based buyer and again ebay didn't charge tax, or VAT I think they call it.
 
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I buy on Ebay here in states all the time and never get hit with taxes on my purchases? Perhaps it's a state by state thing hitting people up for taxes.
 
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I buy on Ebay here in states all the time and never get hit with taxes on my purchases? Perhaps it's a state by state thing hitting people up for taxes.
It is based on your state of residence.
 
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I buy on Ebay here in states all the time and never get hit with taxes on my purchases? Perhaps it's a state by state thing hitting people up for taxes.
This is an evolving program, there are lots of moving parts to collect sales taxes as there are thousands of different combinations of taxes in the 50 states.....some cities add their own sales tax, some counties do the same. Even some zip codes can have two or more tax rates. It's a mess. It will probably be a few years until this is all done and dusted, but make no mistake, if you are buying in a state that has state/local sales taxes you will eventually be charged the tax going forward. States are desperate for revenue......this is easy pickens.
 
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Came across this page on eBay tonight:

https://www.ebay.com/help/buying/pa...ing tax on eBay purchases&intent=tax#section3

It explains why eBay is collecting sales tax in some US states and not others.

As I thought, it is based on the whim of state tax law.

Which means that logic and reason has no place there.
gatorcpa

PS - @Bill Sohne, the site specifically says that eBay will collect sales tax on all purchases delivered in New York.
 
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PayPal are thieves, and the biggest thing to me is they've made it perfectly clear where they stand in their non support of the 2nd Amendment too! I quit using them years ago. Venmo is the way to go now, 100% free if you have the money directly deposited into your checking account.
You do know that Venmo is part of Pay Pal. IMO states have every right to tax on line sales. Unfortunately we cant speak for what they do with the money, which unfortunately goes to unfunded pension liabilities for public employees. GRRRRRR. 😡🤬
 
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You do know that Venmo is part of Pay Pal. IMO states have every right to tax on line sales. Unfortunately we cant speak for what they do with the money, which unfortunately goes to unfunded pension liabilities for public employees. GRRRRRR. 😡🤬

Sorry Larry, having been charged by EBay for my “use” of a vintage Omega bracelet I just purchased I have to disagree.

Don’t you think it puts buying vintage items on the same footing as new items, when our society should reward keeping “old things” (that were made to have a longer lifecycle) in circulation? There are certainly other governments that do reward this thinking.

The use tax was supposed to level the playing field between retailers in-state and out-of-state, but taxing the transfer of a vintage item between two private parties is egregious IMHO.
 
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Don’t you think it puts buying vintage items on the same footing as new items, when our society should reward keeping “old things” (that were made to have a longer lifecycle) in circulation?
No, not really. There are many items sold by retailers that are not new.

The use tax was supposed to level the playing field between retailers in-state and out-of-state, but taxing the transfer of a vintage item between two private parties is egregious IMHO.
In this statement you use the term “private parties”. How would you define a private party? Some very large retailers are private, in that they are family owned and not publicly traded.

Some states have exceptions from sales and use tax for “casual sales”, which would generally cover things like a one-of sale on a forum like this one.

You need to research the law in your state.
gatorcpa
 
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I noticed last week that PayPal is charging sellers a fee on the tax they collect. They lump the tax in with the purchase price and shipping cost and charge their fee on all three amounts.

They've also changed their refund policy so they won't refund the fees charged on the tax collection to the sellers if a seller refunds a buyer's payment.

I'd be curious to know how much more money PayPal is collecting by doing that.