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Ebay Taxes Help...
- Thread starter Rocko1
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1. You should probably ask ebay.
2. Even if collecting sales tax is correct (and it seems unlikely to me), the shipping cost is excluded from a sales tax calculation (this would be true even if the seller and buyer were in the same state, and the seller has a sales tax license).
2. Even if collecting sales tax is correct (and it seems unlikely to me), the shipping cost is excluded from a sales tax calculation (this would be true even if the seller and buyer were in the same state, and the seller has a sales tax license).
I would let him know that you feel he has no legal right to collect out of state taxes since he has no entity in CA and that you will be enquiring on it. Do this before you pay. See what he says....
Not legal. Unless they are located in CA, it is not legal for them to collect CA taxes. Shipping cost is excluded from taxes if the item not taxable. In this case they can not tax the item as they are not located in CA. I would then let them know that it is a reportable offense. Please note in-state in quote below.
"Sales taxes, including those imposed by local governments, are generally administered at the state level. States imposing sales tax require retail sellers to collect tax from customers, file returns, and remit the tax to the state. Procedural rules vary widely. Sellers generally must collect tax from in-state purchasers unless the purchaser provides an exemption certificate. Most states allow or require electronic remittance."
From my own experience, when I've been visiting a different State, if I purchase and have an item shipped home, the retailer does not collect sales tax if they have no presence in my State. I agree that the ebay seller mentioned in the OP is trying to squeeze extra $ out of the buyer. I'd report too.
I lived many years in the states. Was born and raised there, so am familiar with the laws. I am now in Canada and our tax laws are slightly different. If I am traveling to another province and purchase something, I am bound to pay their provincial taxes at the time of purchase. But as long as I keep my receipts, when I get home to my province which has no sales tax, I can claim for those taxes with my provincial government and be reimbursed, the provincial tax part anyways. The federal taxes I have to pay no matter what. But when I purchase something on Ebay from out of province, then I do not pay taxes from where ever the seller is located. I only pay if the seller is located in my province and then it is only federal taxes.