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Slow eBay sales just got slower today (Oct.1)

Effective today, 11 more states are requiring the collection of internet sales taxes bringing the total to 34 states that require this. My sister was kind of happy about it because she works in retail and thinks it might help sales in her store. However, we live in Kansas, and Kansas is still one of 16 states not requiring us to pay sales tax for purchases on eBay

This certainly isn’t going to help ebay sales in general. If you are a seller listing a $1000 item, that item for most buyers just became a $1080 item if the sales tax is 8%. This is probably not a good thing for people selling high-priced autographs.

Thoughts on this subject?

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Permalink Reply by Gratefulphish on October 1, 2019 at 3:21pm

Yes, this is just going to be a further drag on sales. It's like ebay's global shipping program. All of the additional charges have caused buyers to just refuse to pay after winning an auction.

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Permalink Reply by Joe W. on October 1, 2019 at 3:25pm

I sell on eBay and buyers are few and far in between. The sales tax does increase the cost to the consumer although, at least from my sales figures, sales have be dropping over a long period of time. My sales dropped substantially last year and the trend downward has continued this year as well. Unless something changes this will be my worst sales year in a long, long time. Not complaining, it's just the way it is.

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Permalink Reply by James on October 1, 2019 at 11:27pm

That’s too bad, Joe. I hope it turns around, bit obviously these internet taxes can’t help.

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Permalink Reply by Bruce Juice on October 1, 2019 at 7:29pm

This tax doesn't make sense as what if you buy and resell autographs over and over? EVERY time the same autographed item changes hands -- the gov. gets another 8%?

Same with used records, etc -- these items were already taxed when first purchased.

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Permalink Reply by Joe W. on October 1, 2019 at 7:52pm

The government does not need to make sense or be fair. It is a money eating machine and this is just the beginning.

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Permalink Reply by Gratefulphish on October 1, 2019 at 8:14pm

Actually, many states have an exemption from sales tax for a specific item on which sales tax was previously paid. But, eBay isn't going to start going item by item to figure it out, and they are the ones who will be dealing with it, and collecting and remitting the tax. So, even though you may be right, you lose.

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Permalink Reply by Full Time Flipper on October 2, 2019 at 12:09am

I don't know how the tax collection system works in the US for foreign buys but what if you don't use e bays shipping labels ,e bay will charge the tax to the buyer via their e bay payment and if you then ship the item with a standard courier with the package value on the customs label will the buyer have to pay the tax again on entry to the state as how will anyone know you already paid the tax through e bay

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Permalink Reply by Gratefulphish on October 2, 2019 at 12:21pm

What is being discussed here is State level sales tax, which now must be charged on sales between sellers and buyers in most but not all states. You seem to be confusing this with international customs duties, which require a declaration of value, on the package itself, something not required here for regular shipments of anything through the mail, except when you are insuring it.

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Permalink Reply by Full Time Flipper on October 2, 2019 at 3:43pm

Yes sorry I don't understand how a mail order company would know to add a tax to certain orders and not to others is it just based on your address what if you bought an item mail order from say the UK would you be charged a state tax at the point of payment or would you not be charged a state tax I assumed they would look to get the tax by looking at the value of the item when it came into the country and adding the state tax that way

on high value items couldn't you get round the tax by having a friend /relative in a state with no tax buy it and then ship it on to you

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Permalink Reply by Steve Cyrkin, Admin on October 2, 2019 at 4:48pm

It's generally automatic. Most sales invoicing applications and accounting systems like QuickBooks have the tax tables for every state and municipality integrated.

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Permalink Reply by James on October 2, 2019 at 4:12pm

When you use the term, “state”, are you referring to a US state or a country because I know in geopolitical terms, the word “state” refers to an autonomous country? For example, Spain, Portugal, France, UK, Japan are all independent “states” in the international sense. If you can’t tell, I was a political science major. ;0)