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Tue June 4 2019 11:05:49

New York State Explains New Sales Tax Collection Requirements

By: Reader

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Dear Ina,
New York State sent a mailing explaining the sales tax collection requirement for marketplace providers. 

Subject: Sales tax collection requirement for marketplace providers

TSB-M-19(2)S, Sales Tax Collection Requirement for Marketplace Providers

This TSB-M explains new sales tax collection requirements for certain businesses who sell items on behalf of third parties.

To view the entire document (PDF file), visit TSB-M-19(2)S, Sales Tax Collection Requirement for Marketplace Providers.

According to the document, "The Tax Law has been amended to require marketplace providers to collect sales tax on taxable sales of tangible personal property that they facilitate for marketplace sellers. These amendments apply to sales made on or after June 1, 2019."
J.

Comments (39) | Leave Comment | Permalink
Readers Comments

Perminate Link for New York State Explains New Sales Tax Collection R   New York State Explains New Sales Tax Collection R

by: mcposty This user has validated their user name.

Tue Jun 4 12:00:27 2019

Keep writing your congressmen, get this shake down appealed. the supreme court is corrupt to the core


Perminate Link for New York State Explains New Sales Tax Collection R   New York State Explains New Sales Tax Collection R

This user has validated their user name. by: toolguy

Tue Jun 4 19:00:43 2019

Aren't taxes what started the revolutionary war?

Perminate Link for New York State Explains New Sales Tax Collection R   New York State Explains New Sales Tax Collection R

This user has validated their user name. by: iheartjacksparrow

Tue Jun 4 19:56:03 2019

I read the entire notice and it only applies to places such as Etsy and eBay that collect the buyer's payment and then ultimately distributes it to the seller. Since the total of sales must exceed $300,000.00 and the number of sales must be in excess of 100, how much do you want to bet that eBay will never refund any of the money if you made one sale of $10 in New York.

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This user has validated their user name. by: The End

Tue Jun 4 21:34:15 2019

Government is completely hosed.

Perminate Link for New York State Explains New Sales Tax Collection R   New York State Explains New Sales Tax Collection R

by: smallstuff This user has validated their user name.

Wed Jun 5 01:49:56 2019

@iheartjacksparrow
I think you misread the document.  The $300,000 threshold applies to the marketplace provider, not  the seller.  The marketplace provider pays the tax to the state not to the seller.  This new system has gone in place big time.  Every one of my US sales this past week got hit with sales tax under the marketplace rules.  This includes huge sales in CT and NY.  NY caught me by surprise since tax collection is not listed on eBays pages as one of the affected states.  And they are also collecting GST for Australia another of my frequent sales locations.  I'm a little concerned about the implementation of that because the GST status of PAID is something we have to add to the package.  eBay's shipping label does not include that fact.

Perminate Link for New York State Explains New Sales Tax Collection R   New York State Explains New Sales Tax Collection R

This user has validated their user name. by: Marie

Wed Jun 5 02:03:11 2019

@jack

It isn't based on how much the seller sells in $$s.  It is based on the website as a whole.  That is why they are calling them Facilitator laws.  Ebay, Etsy, Amazon, Ecrater, etc.  are all Facilitators.  

Perminate Link for New York State Explains New Sales Tax Collection R   New York State Explains New Sales Tax Collection R

by: Flying Childers This user has validated their user name.

Wed Jun 5 04:16:05 2019

Can someone tell me where in the transaction the sales tax shows up?

I am a  NY buyer on EBay.  I just noticed that EBay is deducting sales tax from my PayPal account but none of this shows up when I buy the item so I have no idea of the change unless I look at  PayPal.

New York is the WORST when it comes to taxes.  They are driving us Out.

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by: Moonwishes This user has validated their user name.
Web Site

Wed Jun 5 08:33:13 2019

"New York is the WORST when it comes to taxes."

I live 4 miles from the NY/PA line. At one point I was looking for a new home. I was shown one about a mile or two in from PA. I was floored by the difference in property taxes! I was looking at a single wide mobile home that the property taxes were as much as a larger stick built house here in PA! Same with groceries. our grocery store parking lot always has lots of NY plates as we don't charge tax on real food. Tax on 100% orange juice - NO, tax of orange-flavored soda pop - Yes. and so on. They shop for their clothing here as well too.  I'm sure NY has their hand out for every possible tax that they can. At least PA give us some breaks.

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by: Flying Childers This user has validated their user name.

Wed Jun 5 08:40:09 2019

I just read the actual NYS Tax & Finance memo and am even more confused.   You really need a lawyer to understand some of this.

Example:  why do they refer to a marketplace provider such as Ebay or Etsy as a "person" when they know that these entities are all corporations?  

Also, it looks like Ebay, Etsy, etc. are required to provide individual sellers with the form ST-150 so that we do not get double taxed by the state.

Does anyone know how other states deal with this?

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by: longtimepowerseller This user has validated their user name.

Wed Jun 5 08:57:55 2019

According to the below, unless you are making BOTH $300,000 in sales and 100 transactions into New York in the past four quarters, you don't have nexus.

https://www.tax.ny.gov/pdf/notices/n19-1.pdf

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by: epuise This user has validated their user name.

Wed Jun 5 09:56:31 2019

I got messed up as I declare & remit all NYS sales tax collected, and just realized it is being with-held by eBay, so, I need to re-do my numbers so I don't send NYS money -I- did not get. There was no alert by eBay that it was starting on X date. I get 10-20 stupid buy this or sell this messages from eBay a day, yet not one on NYS Tax.

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This user has validated their user name. by: iheartjacksparrow

Wed Jun 5 10:01:44 2019

@Marie - Do not include eCrater in the list. They do not collect money from buyers to pay out later to sellers. The money from any purchases goes directly to the sellers via the payment method they choose, PayPal or Stripe.

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This user has validated their user name. by: Marie

Wed Jun 5 12:54:12 2019

@jack
Nor Does Ebay, Etsy, Amazon or the rest of the sites.  They all, including Ecrater, pay the money the collect from the buyers in Sales Tax directly to the states in which they are collecting the sales tax for.

The sellers NEVER get the money if they are in a state that requires a Facilitator to collect the tax.

The ONLY time the seller gets the money paid for sales tax is if the seller is in a state that doesn't currently have a Facilitator law in place.  Then the seller is still responsible for collecting and remitting sales tax where due.  

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This user has validated their user name. by: Marie

Wed Jun 5 12:59:49 2019

@Flying Childers

The sales tax on an Ebay purchase will show in the shopping cart or on your invoice so you can review it before you purchase.  NY sales tax collected by the Facilitators just started on June 1st.

The form that the Facilitators need to fill out and submit to NY are just stating that they will be collecting the sales tax and remitting to the state for any sales that happen on their site pertaining to this particular seller.  

https://www.tax.ny.gov/pdf/current_forms/st/st150.pdf>
For
other states, you'd have to check their requirements.  Most will likely require the sellers to still report the gross sales for the state that are subject to sales tax.  Then in the deduction column, take a deduction for the sales that the various Facilitators collected and remitted directly to the state and then you arrive at any balance the seller may owe in Sales Tax to the state.  Not everyone sells on one venue or solely on the internet.  So it is likely each state will have some version of this type of reporting.

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This user has validated their user name. by: JusTrains

Wed Jun 5 13:14:37 2019

@smallstuff As of June 1st, NYS has been added although you will not find that on eBays help page regading the sales tax application. That's because eBay admitted to me today while I was dealing with the issue, that the pages are out of date and they (eBay) are behind.

Nothing new.

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This user has validated their user name. by: JusTrains

Wed Jun 5 13:18:28 2019

Just got off the phone with @#$%& eBay and they honestly have no clue. Had to make a second call and at least that CSR was able to tell me that the information they have posted on the help pages is at least a week old and out of date. Bad news regarding our excemption certificate that we submitted last month... they are so backlogged that don't expect an answer for at least another 3-4 weeks!!!!

Oh, and by the way, I'm told I can also apply for refunds of tax paid through our New York and Nevada sales tax offices... which is true, but it's just more paperwork hassle that I would rather just avoid in the first place! Arrrggh!

About 85-90% of my inventory acquisitions come from eBay, so right now, I'm suspending all buying past what I've already committed to until eBay gets around to getting our exemption in place. Plus side, I can maybe catch up on some other work I'm behind in!

Perminate Link for New York State Explains New Sales Tax Collection R   New York State Explains New Sales Tax Collection R

This user has validated their user name. by: JusTrains

Wed Jun 5 13:23:58 2019

@Flying Childers

Corporations are and entity unto themselves and are recognized as a 'person' by the type of filing... i.e. S Corp. They have executive officers managing their affairs.

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This user has validated their user name. by: Marie

Wed Jun 5 13:28:42 2019

@justrains

It is on Ebay's policy page.

https://www.ebay.com/help/selling/fees-credits-invoices/t
axes-import-charges?id=4121

Ebay
did not however have it updated prior to the 1st.  But they did around the 3rd.  So I don't know why they would have told you today that it was out of date.  But then most of us knows that CSRs are not always up on the current stuff.  LOL

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by: Flying Childers This user has validated their user name.

Wed Jun 5 15:25:33 2019

Thanks for all the comments and info.  I wish ECB had a Like button!

Perminate Link for New York State Explains New Sales Tax Collection R   New York State Explains New Sales Tax Collection R

This user has validated their user name. by: Marie

Wed Jun 5 15:44:12 2019

@JusTrains

There is a form you can fill out and submit to Ebay to prevent them from charging you sales tax on items you purchase for resale or supplies needed to create what you sell.  So you can resolve this issue and continue to purchase from Ebay if you wish to.

From Ebay policy pages.
Buyer Exemption Program
If you are a tax-exempt buyer (e.g., charitable entity, reseller, etc.), we have a buyer exemption system that allows you to submit tax exemption certificates to eBay and make purchases without paying tax.

In order to verify tax exemptions applicable to your business for purchases on eBay, you must share a valid exemption certificate (acceptable file formats are .gif, .jpg, .jpeg, .pdf, and .png), that you can submit via this Document Upload Link. Please select "General Information" in the drop down menu.

Please include the following information in the Comments section:

Full Name
Business Name
eBay ID
Please allow 7-10 business days for processing.

Alternatively, you may be able to get a credit for sales tax paid to eBay directly from your state. However, you should consult a tax advisor or contact the department of revenue for your state for further details as policies are different for each state.

https://www.ebay.com/help/buying/paying-items/paying-tax
-ebay-purchases?id=4771.html

Page
to submit the proper paperwork.

https://ocsnext.ebay.com/ocs/mudcwf?deptName=USe2MLi
sting

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