Big News (possibly from Ebay)

[Mical]

Ebay & Paypal were great in the beginning but as they "matured" they've become corporate America greedy. They both charge fees, Ebays customer service is non existent & luckily (at least for now) Paypal still protects the buyer from fraud etc.. Sadly I think times are changing and we're witnessing the demise of 2 formerly good selling platforms.

 

[TheHarold]

Ebay & Paypal were great in the beginning but as they "matured" they've become corporate America greedy. They both charge fees, Ebays customer service is non existent & luckily (at least for now) Paypal still protects the buyer from fraud etc.. Sadly I think times are changing and we're witnessing the demise of 2 formerly good selling platforms.

As of recently, PayPal will no longer refund seller fees associated with canceled transactions. It sucks.

 

[MnFish1]

I am aware, my point was that they are still quite connected. I print a shipping label via PayPal, and the tracking number is automatically applied to the eBay order (and the item mark as shipped). Etc etc. It is quite convenient

Right my issue is the charging of sales tax - after spending some with with Ebay - they 'say' that in a couple days - the tax 'should' be deducted from PayPal - but it might not. If its not I have to file paperwork with TX. Which is all good - but I'm not a big Ebay seller - some here are - to multiple states.

 

[MnFish1]

BTW glad this was moved to the lounge - I guess - I didnt know where to post it - I thought about posting it in the sales category - but I dont know those categories. It doesn't affect me on this site. So I hope I helps people selling here

 

[Gw2kpro]

So of I'm understanding this, someone using ebay could easily have to file forms and pay sales tax in 20 or 30 states?

 

[MnFish1]

So of I'm understanding this, someone using ebay could easily have to file forms and pay sales tax in 20 or 30 states?

SO ebay is calling back to confirm
but they said it shoudl be automatically taken care of - I would recommend being careful in this regard

 

[living_tribunal]

Got to be sure they wring every last penny out of us to then squander on something stupid.

It’s Texas that most likely forced eBay to do this.

Every state, and country, want their online sales money.

You have to handle most states sales tax (if they have one and depending on the item) and VAT if the buyer if is in the eu.

 

[living_tribunal]

So of I'm understanding this, someone using ebay could easily have to file forms and pay sales tax in 20 or 30 states?

Yep, you have to handle states sales tax and different countries VAT when you make online sales.

 

[MnFish1]

Yep, you have to handle states sales tax and different countries VAT when you make online sales.

Ebay said that PayPal should deduct it when they charge the fee to the seller - i.e. the buyer pays through PayPal - PayPal shoudl subtract the PayPal fee as well as the tax and send it to whatever state. I will wait to see what comes through PayPal

 

[lmm1967]

At one point in time ( few years ago) - I did over $1m in business on ebay / paypal per year (not reef or aquarium related).

Profit margins were so low (2% - 3%) we opted out with that particular business.

I was keenly aware of the attempt to do this sales tax junk for out of state sales as it has been a hot topic for several years in our industry. I saw businesses starting up with the only product they were offering was managing the nightmare of sales taxes collected outside of your physical location. My wife and I had decided back then - if that ever passes - no more selling anything online any longer.

The burden here is going to put even more small businesses out of business. This is not about states getting their sales tax - it's about big businesses wanting to red tape and paperwork more small businesses out of business. Walmart, home depot, amazon, best buy etc etc.

You think it seems daunting to deal with a sales tax for for each state? How about each county, city, municipality etc. That is the reality - it's not just states that collect sales tax. It is hundreds and hundreds of entities in every single state.

We still have a business - but I refuse to sell product that is not picked up at our location simply because I refuse to deal with so much sales tax nonsense.

I collect sales tax at the proper rate for our physical location and submit that single form with a single payment.

 

[robbyg]

I don't sell on eBay, I only buy on it. I like PayPal just for the security of getting my money back if someone robs me. My biggest online tax shock was Amazon. It was really a lot cheaper to shop on Amazon before the Taxes went on, but I get why this is needed. The Mom and Pop stores are charging taxes and the online sellers did not. So yes the playing field is being leveled.

The way paypal is doing this must be an automatic system that does not involve the seller filling out forms for every state. It would absolutely kill eBay if they did it any other way. Anyway I hope you sellers don't end up with to much hassles. This increase on eBay items is certainly going to make buying certain items a lot less attractive. I am kind of conflicted since on one hand it is fair that they get taxed since online did have about 15 years of almost Tax free existence to get themselves established.

We also just had a lot of tax cuts for the super wealthy so you know the Gov has to make up back that income from the middle class, so I was already bracing for more of this. I would expect that after 2020 there will be even more taxes coming.

 

[Opus]

In the OPs case, he is seeing this because Texas' new tax laws went into effect recently. Some states rushed theirs out as soon as the court ruling was done, others put more thought into theirs and didn't rush out new rules. Some like LA are still fighting internally and it will be another year before their tax law goes into effect. A lot of the states had minimum limits before sales tax was required to be collected. Of course Texas made theirs complicated. It is $500k in sales to Texas in the previous 12 months, and that 12 months is a rolling 12 months. So you can in theory drop in and out of having to collect sales taxes. At least Texas made it so there is only 1 tax rate. They also put in a rule where "markets" such as Amazon and Ebay have to collect sales taxes so each individual seller can't be measured by the $500k rule. So in the OPs case, if he had sold the item thru facebook, he wouldn't have to collect taxes because I don't think it falls under the market rule but the normal $500k rule.

 

[lmm1967]

I don't sell on eBay, I only buy on it. I like PayPal just for the security of getting my money back if someone robs me. My biggest online tax shock was Amazon. It was really a lot cheaper to shop on Amazon before the Taxes went on, but I get why this is needed. The Mom and Pop stores are charging taxes and the online sellers did not. So yes the playing field is being leveled.

The way paypal is doing this must be an automatic system that does not involve the seller filling out forms for every state. It would absolutely kill eBay if they did it any other way. Anyway I hope you sellers don't end up with to much hassles. This increase on eBay items is certainly going to make buying certain items a lot less attractive. I am kind of conflicted since on one hand it is fair that they get taxed since online did have about 15 years of almost Tax free existence to get themselves established.

We also just had a lot of tax cuts for the super wealthy so you know the Gov has to make up back that income from the middle class, so I was already bracing for more of this. I would expect that after 2020 there will be even more taxes coming.

Sales tax is not equivalent to income tax (or any other federal tax for that matter)

Did you know that as a consumer of goods sold by an entity outside of your home tax jurisdiction you are legally obligated to submit sales tax for every online transaction you have completed?

These new laws move the burden to the seller - which will become such a giant cumbersome mess that you will only be able to purchase items from huge corporations on all of these selling platforms since they will be the only ones that can afford to manage the nightmare this is going to become. And -only they can afford the lawyers to deal with any legal ramifications.

Imagine being a small business owner - collecting $50,000 profit on a "successfull" online business - and having to deal with collecting and submitting sales tax to a thousand tax authorities. And then imagine 10% of those authorities are so messed up that they can't keep straight what you should or should not submit so they start taking you to court, winning judgements and putting liens on everything. Yeah - that's what is going to happen here.

 

[MnFish1]

I don't sell on eBay, I only buy on it. I like PayPal just for the security of getting my money back if someone robs me. My biggest online tax shock was Amazon. It was really a lot cheaper to shop on Amazon before the Taxes went on, but I get why this is needed. The Mom and Pop stores are charging taxes and the online sellers did not. So yes the playing field is being leveled.

The way paypal is doing this must be an automatic system that does not involve the seller filling out forms for every state. It would absolutely kill eBay if they did it any other way. Anyway I hope you sellers don't end up with to much hassles. This increase on eBay items is certainly going to make buying certain items a lot less attractive. I am kind of conflicted since on one hand it is fair that they get taxed since online did have about 15 years of almost Tax free existence to get themselves established.

We also just had a lot of tax cuts for the super wealthy so you know the Gov has to make up back that income from the middle class, so I was already bracing for more of this. I would expect that after 2020 there will be even more taxes coming.

I just received all of the money the seller paid me (including sales tax) - with no deduction from PayPal - I have a call into them...

 

[robbyg]

I just received all of the money the seller paid me (including sales tax) - with no deduction from PayPal - I have a call into them...

Yikes!!!

 

[EMeyer]

I sell frequently on eBay, typically a few sales a week, and my experience with this has been that it was rolled out pretty seamlessly. Sounds like that is not the case for everyone.

In my case, its been working as described -- eBay collects the state sales tax, I don't get the taxes or have to file any paperwork on them. Its an extra cost for the buyer but hasnt really impacted me as a seller. Sorry to hear its not going that way for everyone, and thanks for bringing this up... I will have to keep a close eye on it to make sure it keeps working consistently...

 

[Katrina71]

I have utilized eBay for years. I really hope it doesn't get ruined

 

[MnFish1]

I just received all of the money the seller paid me (including sales tax) - with no deduction from PayPal - I have a call into them...

Don't know precisely whats going on - but - I got an email saying they The customer paid PayPal 34.14. I got an email from PayPal that says I got paid 34.14. On the phone Ebay said 'PayPal pays the tax'. When I go into my PayPal account it says You got paid 34.14 - Tax paid by Ebay 2.60 = 31.54 - so I have no clue whats up - but - I'm hoping someone paid the tax...

 

[MnFish1]

I sell frequently on eBay, typically a few sales a week, and my experience with this has been that it was rolled out pretty seamlessly. Sounds like that is not the case for everyone.

In my case, its been working as described -- eBay collects the state sales tax, I don't get the taxes or have to file any paperwork on them. Its an extra cost for the buyer but hasnt really impacted me as a seller. Sorry to hear its not going that way for everyone, and thanks for bringing this up... I will have to keep a close eye on it to make sure it keeps working consistently...

I think keeping a close eye is the important thing... According to Ebay this just started November 2019 - and neither customer service person I talked to knew much about it.

 

[cvrle1]

Don't know precisely whats going on - but - I got an email saying they The customer paid PayPal 34.14. I got an email from PayPal that says I got paid 34.14. On the phone Ebay said 'PayPal pays the tax'. When I go into my PayPal account it says You got paid 34.14 - Tax paid by Ebay 2.60 = 31.54 - so I have no clue whats up - but - I'm hoping someone paid the tax...

I can tell you what I am seeing as buyer. I have 2 transactions in PayPal for 1 eBay purchase. 1st transaction if for the actual item payment. It says eBay (sellers name) Purchase as description. Then there is a 2nd transaction that is eBay Inc Payment. That one is for Sales Tax. In the purchase Details it says "Sales Tax" So PP should be automatically collecting taxes for you as seller, and you should just get the amount that you sold your item for, minus all the fees.