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Thu Sept 12 2019 08:19:20

Buyer Disgusted by eBay Sales Tax Snafu Turns to Amazon

By: Reader

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Dear Ina,
It seems eBay cannot implement tax collection correctly in Connecticut. 3 months ago I purchased some OTC medicine and was charged sales tax. There is no sales tax in CT on these products. 

I contacted eBay at the time and was told they would look into it and of course never heard back.

I tried to purchase the same item today and was again going to be charged sales tax. Contacted support and was told anything shipped to CT will be charged sales tax.  

I emptied my cart and purchased the item at Amazon. A few $ more but their system is competent enough not to charge sales tax.
Frank

Comments (21) | Leave Comment | Permalink
Readers Comments

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: Disgusted This user has validated their user name.

Thu Sep 12 10:05:19 2019

What do you think will happen with forced managed payments??????  You agreed when you listed an item that you will not take ebay to court.
Sellers will be lucky to see anything.
Does ebay charge a final value fee on sales tax?? I don't know-I haven't sold on ebay in years now.  Just curious.

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

This user has validated their user name. by: iheartjacksparrow

Thu Sep 12 10:45:04 2019

@Disgusted - This is from eBay's policy page on FVFs:

"This fee is calculated as a percentage of the total amount of the sale. The total amount of the sale is the amount the buyer pays, including any shipping and handling charges. Sales tax isn't included in the calculation."

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: Silver Ice King This user has validated their user name.

Thu Sep 12 16:39:49 2019

That is the problem with having these facilitators collecting the sales tax.  They are not going to learn the laws of each state as to what needs to be taxed and what is not taxable.  They are just going to tax everything and be done with it.  The states aren't going to complain because that just means extra money for them to waste on whatever project  they have in mind.  I knew that Ebay was not going to do anything correctly when it came to collecting sales tax as that would mean their offshore programmers would actually have to understand what is or isn't taxable and understand how to write the code.  They still struggle with getting the US holidays correct for the shipping metrics, so what makes anybody think that they would be able to handle all the intricacies of the various sales tax laws???  ROFLMAO

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: thievesBay This user has validated their user name.

Thu Sep 12 18:28:56 2019

100% guaranteed that when eBay is collecting sales tax by charging/overcharging where it's not warranted or required, they will keep that money for themselves. They won't report it and won't submit it to the states. Some would say that's illegal and eBay would never do that, but where have you been lately? This is eBay! They are rampant with fraud and questionable business practices and they certainly have no qualms about stealing money.

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: DingDong This user has validated their user name.

Thu Sep 12 20:10:49 2019

I guess I would be making copies of what sold items that eBay received sales tax on.
Send ebay and your state a 1099 or ? form for the sales tax ebay collected.
It would be interested for the states that don't collect sales tax and yet eBay collected it if that state would receive that money.
I have kept copies of what eBay collected sales tax on.  

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: thievesBay This user has validated their user name.

Fri Sep 13 13:12:11 2019

@DingDong It might be difficult to easily keep track of sales tax since many sellers report their invoices no longer display that amount, even though eBay charged it. Hmmm I wonder why that might be?

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

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

Fri Sep 13 15:45:45 2019

You can get a report of all your sales activity through eBay's File Exchange as a .csv file.  At least you can for now, unless they change that, too.  Convert it to a spreadsheet.  Very easy and fast.  The file itemizes all facets of each transaction, including sales tax collected by eBay, sales tax YOU collected in your home state, and even all the buyers' email addresses.  You can automate it so it sends a report every month by email link.  Then you can sort that according to what you need.  I put the link to File Exchange into ''Web Site'' above, and it is here also:
https://bulksell.ebay.com/ws/eBayISAPI.dll?FileExchangeCenter

*****
You
can also get a similar report directly from Seller Hub on the Orders page, with taxes collected by you or ebay, and also email addresses of the buyers.  Email addresses there only go back 14 days, though.

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

This user has validated their user name. by: Lightning

Fri Sep 13 23:28:01 2019

@Frank, the OP
Why would you pay ''A few $ more'' to Amazon?  You're saying that the eBay price plus tax was less.  Let the state HAVE the extra tax money, because at least it's a step toward filling their coffers.  When not full, they will come after YOU for more tax money in some other way.  

It doesn't benefit you at all to give even more money to Amazon.  Not a charity at last check.  You're standing on principle to NOT pay this unwarranted tax money, and shooting yourself in the foot by letting Amazon have it instead, and more on top of it.  Keep the money local, where it might do some good.

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

This user has validated their user name. by: CanBrit

Sat Sep 14 10:33:15 2019

There are so many software companies out there that provide a US tax service. When it comes down to it there are some States where taxes vary in counties and cities. How hard is it for eBay to set themselves up with one of them?

Oh, I forgot. They'd have to pay.

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by: Tubular Sales This user has validated their user name.

Sat Sep 14 20:49:10 2019

Lightning,
The point is ebay knowing there's a problem and not rectifying it.  Why should I pay sales tax on a exempt item and have ebay  pocket the money?  As for purchasing on Amazon; I received the medicine, Prilosec, in 1 day so it was worth the difference.  And screw Connecticut, they collect enough taxes and spend it on sanctuary cities and college for illegals.

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

This user has validated their user name. by: Lightning

Sat Sep 14 22:11:35 2019

@Tubular Sales
You got me there, Frank.  There's no winning at all in that situation.  I am not sure that any entity is going to get the very specific taxation correct in all the weird categories and exemptions throughout the nation.  Even national companies have trouble doing it right for their own products, never mind every product ever made, past or present, every state, city, municipality, etc.  

And it definitely won't be within eBay's power.  They probably already said sayonara to that possibility and gave up before they even tried.  And there won't be enough Prilosec to go around in San Jose.

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: ySirTinLee This user has validated their user name.

Mon Sep 16 00:57:43 2019

I had the same problem, NY does not charge tax on meds either.  I paid, but then notified the seller that ebay charged sales tax for the item he sold.  Within a matter of an hour, I was refunded the amount of the tax from the seller and ebay.  Another thing, NYS does not charge sales tax (4%) on clothing under $110 per item.  Sales tax is only by local entities, like county, city, town or village.  You should check your states rules to make sure you're not being over charged and don't let ebay tell you what they will or will not do in this case.  Collecting tax that is not tax is a crime and all you need to do is notify the Attorney General of your state.  This does not cost anything so don't come back with ebay has the money to fight it court.  So does the state.

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: smallstuff This user has validated their user name.

Mon Sep 16 01:17:12 2019

The items I sell are taxable.  So far, I've checked the sales tax charged on all of the sales where eBay added sales tax for the buyer to pay.  In every case it was correct and included state sale tax, county sales tax, city sales tax and even special sales tax where one existed.  I find it hard to believe eBay is doing this programming themselves.  Taxes change frequently and it is painless for them to engage a third party solution whose business it is to track tax details and to provide the sales tax calculation (e.g., Vertex or a similar product).  

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: eastwestphoto This user has validated their user name.

Mon Sep 16 07:49:06 2019

If eBay doesn't fix the tax rules for each state in the USA, it stands to put themselves OUT of Business. Eventually even the most oblivious eBay buyer will leave eBay. It's a ticking time bomb and a shame that eBay thinks; buyers will forget, never happen! The principle of paying taxes to out of state sales and taxes on used old items is,  immoral!  

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

This user has validated their user name. by: Bidonmine

Mon Sep 16 09:53:32 2019

If you keep the receipts from purchases you can file with your State Sales Tax Authority to have the Sales Tax refunded to you. The more people that file for a refund from Ebay purchases, the more likely it will be that the State or States will open an investigation of the Tax practice by Ebay.

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: Mark4 This user has validated their user name.

Mon Sep 16 12:19:31 2019

Ebay has the tax thing so messed up. they are required to collect sales tax here in Pa, yet our last 10 Pa orders over the last few weeks no tax has been collected.  

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This user has validated their user name. by: Lightning

Mon Sep 16 14:06:11 2019

@Mark4
Are you stating that orders you shipped from ''here in PA'' did not get taxed, or orders you received did not get taxed?  It depends on where the orders go.  The tax is applied according to the rules of the receiving state.  And sometimes eBay is a step behind regarding on-boarding states, but will catch up eventually.

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This user has validated their user name. by: RKTOYS

Mon Sep 16 20:11:36 2019

Here's another issue.  Does eBay have any way to provide sales tax exemption for those of us buying for resale?  I'd bet they don't, because nobody seems to support that.  So in those cases, eBay is double and triple taxing the same items.  It's ridiculous.

Perminate Link for Buyer Disgusted by eBay Sales Tax Snafu Turns to A   Buyer Disgusted by eBay Sales Tax Snafu Turns to A

by: railady This user has validated their user name.

Tue Sep 17 20:59:59 2019

@RKToys,  Indeed there is an exemption for buyers buying for resale.  If I'm not mistaken, this has been discussed in at least a couple of threads.  I sent in my information months ago.  You need to provide a copy of your exemption certification from your state.

Here is the link:
https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purc
hases?id=4771
 

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by: railady This user has validated their user name.

Tue Sep 17 21:04:37 2019

And regarding Amazon, they aren't pure as the driven snow.

I bought a box of spices and was charged sales tax. I informed them that New York State exempts "food seasonings" from tax.  I got a blunt reply back, "You live in New York, you pay tax. End of story."  

I then sent them a copy of the government website listing all the exempt products with a demand for a refund, and was refunded the tax they had wrongly charged me.  

Indeed, this "secret revenue" is a naughty subject that isn't being discussed. It is a WINDFALL for the states (if they are getting it, or do sellers really know and don't remit it?) .

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