ebay collecting tax on all purchases?

H

Huss

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This may be old news, and I understand collecting tax on domestic purchases in the US (which is a pretty recent change). But ebay is now also collecting tax from overseas purchases?
I just bought an item from a seller in Poland. $100 with free shipping. ebay charged me 9.5% tax on this. If I brought this into the country through customs I would be charged nothing as it falls under their $800 cap.

So is this legit or an ebay sanctioned scam?
 
There was recent legislation requiring online sellers to collect the state sales tax and forward those taxes to the state where the purchase was made.
 
This is what they say:

If you sell to buyers in the US, some states may require you to collect applicable Internet Sales Tax on your transactions. As of October 1, 2019, a total of 34 states now require the collection of sales tax. In such cases, eBay collects and remits Internet Sales Tax on your behalf.
Learn more about Internet Sales Tax, on our Help pages, from your tax advisor, or from our partners Avalara and TaxJar.
Starting in November 2019, the way taxable transactions are processed and how taxes are collected for remittance will change, as follows:
In states where eBay is required to collect Internet Sales Tax from buyers, order totals sent for processing will reflect the gross order amount inclusive of tax.
Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.
A record of the sales tax portion of the order will be available on the Seller Hub Order details page and through our Download order report.
Please note the applicable tax will continue to be paid by the buyer and you do not need to take any action. These changes do not apply to sellers in managed payments.
 
So as I live in CA, ebay is collecting CA sales tax for overseas purchases?

Hmm, this makes for a good reason to buy stuff directly from the shops (eg Leica Store in Vienna) and have them ship it as you would not get charged tax.

p.s thank you for the explanations.
 
Huss said:
So as I live in CA, ebay is collecting CA sales tax for overseas purchases?

Hmm, this makes for a good reason to buy stuff directly from the shops (eg Leica Store in Vienna) and have them ship it as you would not get charged tax.

p.s thank you for the explanations.
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If you used to buy from Leicashop in Vienna on ebay then probably yes, but usually items in those stores are much more expensive compared to private sellers.
 
It is very odd that overseas purchases are included in the money grab. I discovered this when buying something from a Japanese seller. Personally, after all the slings & arrows of eBay, this one has tipped the scales for me. Am done with them.
 
Huss said:
So as I live in CA, ebay is collecting CA sales tax for overseas purchases?

Hmm, this makes for a good reason to buy stuff directly from the shops (eg Leica Store in Vienna) and have them ship it as you would not get charged tax.

p.s thank you for the explanations.
Click to expand...

Unless they charge shipping, and it depends on the value of the item taxed versus the shipping cost, then add in insurance for more expensive items.
 
I understand the state sales tax thing, and think all things considered, it's good. But not sure how, or why, they can tax out of country purchases.
 
Man did I just miss this? I purchased a camera from Austria Halloween Night. No sales tax.
 
wjlapier said:
Unless they charge shipping, and it depends on the value of the item taxed versus the shipping cost, then add in insurance for more expensive items.
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They have had some deals where it was much cheaper than buying in the USA, plus with big ticket items free insurance and shipping. And no tax.
 
My major beef is that eBay is collecting tax on the shipping as well - which adds up on an overseas purchase.
 
I'd like to be done with e-bay but unfortunately for odd-ball items (that are fortunately, usually very cheap), that is where to find them. You know, something like a 48mm to 49mm filter step up ring so I can use easy to find threaded filters, hoods and lens caps for a Canon QL17 GIII for instance.
 
I just bought a large easel from eBay seller in Canada and
they charged sales tax. I'm in California.
 
Recently purchased several CZ Jena lenses from seller in Leipzig, no sales tax paid. Generally if I have to buy on EBay and reach out that far from California to get an item I want, the tax is of little consequence cause if it was across the street I’d still have to pay it.
 
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