Amazon to Ebay Sales Tax Question - eBay Suspended & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > Platform Discussions > eBay Discussion!

eBay Discussion! EBay Forum. News, Updates, or Anything eBay is Welcome. A kind of lounge if you will.

Reply
 
Thread Tools
  #1  
Old 11-06-2016
Junior Member
 
Join Date: Nov 2016
Posts: 1
Thanks: 0
Thanked 1 Time in 1 Post
Activity: 0%
Longevity: 43%
iTrader: (0)
Default Amazon to Ebay Sales Tax Question

Question about sales tax.

Let's say I sell a $40.00 amazon item for $50 on ebay.

Now let's say it's shipped to a customer in New York. I'll pay $43.55 on amazon instead of $40, which would mean I'd break even.

So to prevent that, I'll match the sales tax table on Ebay to approximately the one on Amazon, so Instead of $50 i've sold it for $54.44.

Don't I have to pay the $4.44 to the government at the end of the year? Or do I not deal with sales tax because I've paid it to amazon already and I never physically own the product?

Thoughts appreciated. Thank you.
Reply With Quote
The Following User Says Thank You to evolve1337 For This Useful Post:
nasi (01-29-2017)
The complete step-by-step guide to get back to selling today!

  #2  
Old 11-07-2016
JamesNorth101's Avatar
Executive [VIP]
 
Join Date: Apr 2013
Posts: 20,073
Thanks: 2,424
Thanked 5,197 Times in 3,996 Posts
Activity: 27%
Longevity: 63%
iTrader: (462)
Default Re: Amazon to Ebay Sales Tax Question

You would need to talk to an account for clarification on that
Reply With Quote
The Following User Says Thank You to JamesNorth101 For This Useful Post:
rsot (11-07-2016)
  #3  
Old 11-07-2016
rsot's Avatar
Executive [VIP]
 
Join Date: Dec 2009
Posts: 75,843
Thanks: 5,925
Thanked 8,908 Times in 8,201 Posts
Activity: 99%
Longevity: 83%
iTrader: (7)
Default Re: Amazon to Ebay Sales Tax Question

Welcome to the forums OP - forum deals with use of stealth method and not really financial advice/plan/scheme/tax
Reply With Quote
  #4  
Old 11-07-2016
Junior Member
 
Join Date: Apr 2016
Posts: 27
Thanks: 17
Thanked 2 Times in 2 Posts
Activity: 0%
Longevity: 46%
iTrader: (0)
Default Re: Amazon to Ebay Sales Tax Question

Im assuming you're doing Amazon -> eBay arbitrage (which is exactly what I do at a fairly decent scale), that being said I'll just leave this.

1) Yes, you can technically do that in order to keep your margins, and if you don't sell that much it won't get un-noticed.

2) Once you start getting to scale, start reporting your income to the gov. during tax season, or even if a customer asks why you are asking for addtl. $ regarding taxes and you do not have a legitimate reason - you can get into big trouble.

Yes, eBay really does ignore this issue, but that doesn't mean it will not become a problem long term. The basic rule is, unless you are absolutely sure you can legally collect sales tax, you shouldn't fill out that tax table.

Personally, when I started I filled out my sales table, but I found the long-term risk out-weighs the benefits of trying to sneak in Sales Tax on eBay sales.
Reply With Quote
  #5  
Old 11-07-2016
Junior Member
 
Join Date: May 2013
Posts: 326
Thanks: 7
Thanked 63 Times in 52 Posts
Activity: 0%
Longevity: 63%
iTrader: (0)
Default Re: Amazon to Ebay Sales Tax Question

Quote:
Originally Posted by evolve1337 View Post

Don't I have to pay the $4.44 to the government at the end of the year? Or do I not deal with sales tax because I've paid it to amazon already and I never physically own the product?

Thoughts appreciated. Thank you.
You pay the $4.44 to the government. ALL money collected as sales taxes from your customers must be turned over to the government even if you did so in error. If you have a legit company and have a tax ID you may be able to write sales taxes paid off on Amazon purchase off when you file taxes.
Reply With Quote
  #6  
Old 11-07-2016
Junior Member
 
Join Date: May 2013
Posts: 326
Thanks: 7
Thanked 63 Times in 52 Posts
Activity: 0%
Longevity: 63%
iTrader: (0)
Default Re: Amazon to Ebay Sales Tax Question

Quote:
Originally Posted by tbpatel2 View Post
Yes, you can technically do that in order to keep your margins, and if you don't sell that much it won't get un-noticed.
I don't recommend doing this at all. All funds collected from your customers as sales taxes must be forwarded to the state equalization board, even if you collected the funds in error or you had no authority to collect these funds. You will be legally 100% held responsible for paying all funds to the state equalization board.
Reply With Quote
  #7  
Old 01-29-2017
Junior Member
 
Join Date: Oct 2013
Posts: 2
Thanks: 3
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 60%
iTrader: (0)
Default Re: Amazon to Ebay Sales Tax Question

Hi,

I am curious about this topic. I'm also getting into Amazon -> eBay arbitrage and see many sellers that collect sales tax in multiple states. Basically all the big players seem to collect sales tax - i found more than a few big sellers with revenue over $500K/month and all of them collect sales tax.
couldn't find even one player at this size that does not collect sales tax...

would you assume they go into the intensive work of filling sales tax in all the states? my guess is they would, this is a serious issue with severe penalties for not remitting taxes. but I see a lot of indications that they do not remit taxes - some of them collect wrong %, others collect in many more states than the ones that amazon have warehouses - so they don't even need to collect there. and above all - it seems that if they remit the taxes they make 0 profit... they are always price leaders and the pricing is almost exactly at cost of purchase on amazon.com + ebay & PP commissions...

any thoughts to share?
Reply With Quote
  #8  
Old 01-29-2017
Senior Member
 
Join Date: Sep 2011
Posts: 3,126
Thanks: 11
Thanked 761 Times in 582 Posts
Activity: 0%
Longevity: 72%
iTrader: (0)
Default Re: Amazon to Ebay Sales Tax Question

You should consult a tax professional.

If you collect sales tax, you must turn it over to the appropriate governmental authority, without exception. You may not under any circumstances keep that money yourself.

If you do not collect sales tax and you were supposed to, you must pay it yourself.
Reply With Quote
  #9  
Old 02-01-2017
Junior Member
 
Join Date: Oct 2013
Posts: 2
Thanks: 3
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 60%
iTrader: (0)
Default Re: Amazon to Ebay Sales Tax Question

hi dallis, thank you for answering.

I understand the rules and aware of the importance of remitting taxes and the big risk in not doing so (as i wrote)

What I am puzzled with is how these sellers make any profit? I looked at more than a few items from such sellers and there is 0 profit in their activity if they remit the collected taxes. maybe my question should be a different one - how do these sellers make money, maybe i a missing something and it is not the taxes.... I will put a new question for that end with samples
Reply With Quote
  #10  
Old 02-01-2017
Senior Member
 
Join Date: Sep 2011
Posts: 3,126
Thanks: 11
Thanked 761 Times in 582 Posts
Activity: 0%
Longevity: 72%
iTrader: (0)
Default Re: Amazon to Ebay Sales Tax Question

Just wanted to be sure you don't make a terrible mistake with the taxes.

I often wonder how people profit at the price they are selling product.

On the other hand, I once walked into JC Penny in February and they had surplussed / clearanced all the winter gear. I bought kids long sleeve dinosaur and character shirts for $2, and ended up reselling them at below list price for $16/18/20 per.

I bought nearly 1000 of them over the next several days at every store in town, sometimes I had two shopping carts full at a time, and it took an hour just to ring them up. The clerks thought I was crazy!

I had to hold most of them until the following winter, but they all sold.

One year in Walmart in the fall they clearanced girl's 2-piece Spongebob swimsuits, they marked them down to $.60 each, I went to every store in town and bought several hundred of them, sold them for close to the regular price of $12 each the next spring / summer.

A lot of people make a great living at this kind of retail arbitrage.
Reply With Quote
The Following User Says Thank You to dallis For This Useful Post:
camouflage (02-02-2017)
  #11  
Old 02-02-2017
Junior Member
 
Join Date: Jan 2015
Posts: 63
Thanks: 95
Thanked 5 Times in 5 Posts
Activity: 0%
Longevity: 53%
iTrader: (0)
Default Re: Amazon to Ebay Sales Tax Question

Quote:
Originally Posted by nasi View Post
hi dallis, thank you for answering.

I understand the rules and aware of the importance of remitting taxes and the big risk in not doing so (as i wrote)

What I am puzzled with is how these sellers make any profit? I looked at more than a few items from such sellers and there is 0 profit in their activity if they remit the collected taxes. maybe my question should be a different one - how do these sellers make money, maybe i a missing something and it is not the taxes.... I will put a new question for that end with samples
Discounted gift card + cash back site.
Reply With Quote
  #12  
Old 02-03-2017
Junior Member
 
Join Date: Apr 2015
Posts: 478
Thanks: 14
Thanked 60 Times in 55 Posts
Activity: 4%
Longevity: 52%
iTrader: (1)
Default Re: Amazon to Ebay Sales Tax Question

Quote:
Originally Posted by evolve1337 View Post
Question about sales tax.

Let's say I sell a $40.00 amazon item for $50 on ebay.

Now let's say it's shipped to a customer in New York. I'll pay $43.55 on amazon instead of $40, which would mean I'd break even.

So to prevent that, I'll match the sales tax table on Ebay to approximately the one on Amazon, so Instead of $50 i've sold it for $54.44.

Don't I have to pay the $4.44 to the government at the end of the year? Or do I not deal with sales tax because I've paid it to amazon already and I never physically own the product?

Thoughts appreciated. Thank you.
This is a very technical issue on which state you live in. The 4.44 you charge over if that is what is required, would be needed to be turned in to your tax authority. I take it you are in a state that require taxes on most transactions. I take it this is local and state tax? I do not know your state and local laws.

In general, if you are in a state that requires only in-state sales to be part of nexus, then you only claim those for state taxes. The rest of your sales are FEDERAL, if they are in fact out of state. You would simply upload your sales totals minus your expenses in the software to do your taxes. Then you account for other cost in other areas to see your adjusted net profit.

If you don't have any experience in this area, I would highly suggest a professional to do your taxes for you. It is very low cost and makes for security in knowing your returns are right. In the mean time, study YOUR state's law requirements on online transactions. This is coming from an actual accountant, as I am one.
Reply With Quote
Reply



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Sales on Amazon V's Ebay KillerWhale eBay Discussion! 5 06-29-2016 11:06 AM
Amazon vs. eBay Sales aking Subscriber Discussions 15 10-25-2015 08:53 PM
Amazon sales on UK, too slow compared to eBay? Tekko Everything Else 6 08-31-2015 11:23 AM
Ebay Mobile Sales Question mrbills10 eBay Discussion! 1 05-07-2015 03:25 PM
Amazon Gross Sales question? DHB123 Amazon 1 12-11-2011 02:37 PM


Aspkin Group

All times are GMT -5. The time now is 07:21 AM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58