Ebay Taxes Help...

Discussion in 'Community Discussion' started by Rocko1, Apr 30, 2013.

  1. Rocko1 macrumors 68020

    Rocko1

    Joined:
    Nov 3, 2011
    #1
    I live in CA, bought ebay item from seller located in GA. Seller is attempting to charge me CA sales tax based on combined price of item plus shipping. Is this legal? He has no presence in CA.
     
  2. chown33 macrumors 604

    Joined:
    Aug 9, 2009
    #2
    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).
     
  3. Mr. McMac Suspended

    Mr. McMac

    Joined:
    Dec 21, 2009
    Location:
    Far away from liberals
    #3
    I'll bet he isn't giving CA the tax money. I'd report him..
     
  4. Rocko1 thread starter macrumors 68020

    Rocko1

    Joined:
    Nov 3, 2011
  5. Mr. McMac Suspended

    Mr. McMac

    Joined:
    Dec 21, 2009
    Location:
    Far away from liberals
    #5
    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....
     
  6. firedept macrumors 603

    firedept

    Joined:
    Jul 8, 2011
    Location:
    Somewhere!
    #6
    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."
     
  7. Rocko1 thread starter macrumors 68020

    Rocko1

    Joined:
    Nov 3, 2011
    #7
    Good info guys thanks. I have not paid and emailed them asking them how they feel they can collect tax as well as taxing the shipping costs. If I don't get a response in a day or two, I will contact eBay. I will report back.
     
  8. Huntn macrumors G5

    Huntn

    Joined:
    May 5, 2008
    Location:
    The Misty Mountains
    #8
    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.
     
  9. firedept macrumors 603

    firedept

    Joined:
    Jul 8, 2011
    Location:
    Somewhere!
    #9
    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.
     

Share This Page